Railroad Car Hire Rate Negotiation
Car Hire Rate Negotiation, sometimes called "Deprescription," is the term used to describe the ability to negotiate car hire rates between owners and users of railroad-marked freight cars.
The Railroad Consulting Network LLC is the leading consulting firm in the area of freight car hire compensation. Our experience and expertise dates back to the implementation of "Deprescription" in 1994. We have negotiated more deals on freight car rates than anyone else in the industry. We have continuously contributed to the design and development of the "market rate process" working with Class I and short line railroads, and their industry partners.
Our track record of success speaks for itself--just ask our clients.
By order of the Interstate Commerce Commission (now STB), Deprescription became effective on January 1, 1994 and replaced the "prescribed" formulaic approach that computed car hire rates. Want to learn more about the car hire rate process? Check out the "Car Hire Primer" and "Deprescription Frequently Asked Questions" pages in the Resources/Tools Menu above.
Our Approach
Strategic Planning
Serving as the foundation for effective car hire management, we will develop a strategic car hire and deprescription plan that optimizes car hire cash flows for your organization through...
Market Rate Analysis
Deal Analysis & Evaluation
Receivable & Payable Car Hire Forecasting
Car hire negotiation and deal-making strategies are customized to fit the particular needs of your company.
Negotiation Agency & Representation
By representing your railroad in car hire rate negotiations, we will ensure optimal rate deals on your, or foreign railroad owned, freight cars. With over 5,000 deals involving over 2.5 million freight cars negotiated since 1994, your organization will benefit from our experience and knowledge of this complex process. We can get a better car hire rate deal for your railroad. All deals are subject to your company's approval prior to closing.
Car Hire Arbitration
Having been through several successful arbitrations, we can assist your organization with all aspects of the car hire arbitration process. We will work with company management and legal counsel through each step from arbitrator selection and case preparation through case responses and the final decision to ensure the best possible outcome in this 90 day process.
Key Benefits:
Increased earnings for your fleet
Cost reductions on foreign freight cars.
Our services are bottom-line focused and results-oriented.
Optimal cash flows,
Greater operational efficiency,
Effective management.
Effective results...over $25 million in equity value to clients in the area of rate negotiation