Interline pricing goes real-time

Railway Age, Feb, 2004

Obtaining interline rates has traditionally been a time-consuming, frustrating process for railroad customers. The originating railroad has to contact a connecting carrier by telephone or email to request a revenue requirement, "resulting in delays of days, even weeks, in getting an interline price quote to the customer," according to CN Executive Vice President-Sales and Marketing James Foote.

CN and CSX Transportation are attempting to improve the interline rate-making process by jointly developing an electronic means for customers to obtain instantaneous interline prices for carload shipments. "A B Pricing" uses the Internet to give railroad account managers the ability to retrieve and combine the two railroads' revenue requirements and quote market-competitive interline prices in real time "for any origin, destination, and commodity on the two systems." Customers will be able to go to the originating railroad's Website and ask for a combined interline price. CN and CSXT say A B Pricing is "a rail industry first."

"Immediate access to competitive interline pricing will make shipping via CN and CSXT easier and more accurate," says Foote. "This is another important step in making the railroads attractive to freight currently moving over North America's highways." Adds CSXT Senior Vice President-Merchandise Service Group Clarence Gooden, "Interline moves comprise more than hall of our business. A B Pricing will dramatically improve response time, billing accuracy, and efficiency."

The two Class I's expect to make A B Pricing available to customers on their Websites later this year and are also working with other Class I's and short lines to expand coverage.