In the realm of rail freight transportation, businesses often encounter a myriad of challenges when dealing with railroads. From poor customer service to compliance and maintenance issues, navigating the complex rail landscape can be daunting. However, a solution to these frustrations exists with the expertise of an experienced rail service management partner. Understanding how a provider can alleviate and eliminate rail transportation issues is vital for ensuring efficient rail freight operations, cost-saving opportunities, and relieving your business from avoidable stressors, hiccups, and pitfalls.

By comprehensively analyzing your rail network, we aim to showcase the industry-leading processes, expertise, and commitment to customer satisfaction that you should expect from such providers. By highlighting viable alternatives to subpar rail service, we’ll empower shippers with the knowledge and assurance that superior options are available to meet your rail transportation needs.

 

Defining Rail Service

Rail service is transporting goods and materials by rail, utilizing an extensive network of rail lines, terminals, and infrastructure. It’s well-suited for the efficient movement of large volumes of freight and provides a cost-effective solution for businesses dealing with substantial quantities of goods, such as bulk liquids or heavy products.

 

The Current Status of the Rail Freight Industry

Considering recent incidents, rail safety has become a significant focus and objective internally and through regulatory agencies, such as the seven key safety measures enacted in March of 2023 by railroad industry leaders. This regulation change is in addition to legislation being pushed through Congress for railroads to operate more responsibly and sustainably. Maintaining a fleet that complies with safety regulations is paramount for ensuring successful operations.

However, rail transportation remains one of the safest freight transport methods. In fact, the time between 2010 to 2020 proved to be the safest decade ever for United States railroads, and the industry is projected to grow by 50% over the next 30 years. Therefore, the need for maintenance, compliance, and increased vigilance over rail safety will grow proportionally.

Rail fleet maintenance and compliance are even more critical for companies shipping hazardous materials, where adherence to stringent safety protocols is a top priority. Despite fluctuations in intermodal rail volumes, chemical rail shipments have remained relatively steady over the past few years and will continue this trend in the foreseeable future.

By leveraging the expertise of a rail management provider, shippers can take advantage of the current market no matter how it may ebb and flow while remaining compliant, safe, and successful.

 

Why Rail Freight Operations are Successful

The key to success and safety in rail freight lies in effectively documenting, tracking, managing, and maintaining equipment and assets. CLX Logistics, for example, possesses a deep understanding of regulatory requirements and railroad operations. This knowledge allows us to ensure that customers’ existing fleets remain up to date with inspections and comply with evolving regulations. By taking a proactive approach to fleet management, CLX minimizes disruptions and helps its customers achieve long-term success on the rails.

 

Common Rail Service Challenges

Customers utilizing rail freight services often encounter time-consuming and costly hold-ups such as compliance issues like unapproved railcars, railroad and railyard miscommunications that cause shipping to stall, and the need for rail car repairs and servicing preventing shipping from beginning entirely.

As organizations primarily focused on moving large quantities of products, railroads may not prioritize customer service as efficiently as some would prefer or need. Also, your company may not be aware of evolving industry changes or requirements or even possess the ability or human resources to mediate these issues effectively or as quickly as needed. A rail management partner will be an extension to your team to remove these burdens from your workload and clear any roadblocks on your behalf, getting your freight moving as quickly as possible without interrupting your other vital operations.

 

Why Choose Rail Management Service?

CLX Logistics’ rail management services set it apart from traditional providers by offering more than just the transportation and tracking of goods from point A to point B. Led by seasoned experts with extensive railroad experience, CLX understands the industry’s intricacies. We can bypass the red tape commonly associated with railroad operations by leveraging our insider knowledge. Instead of relying on customer service representatives, CLX connects directly with the individuals who can get things done—train masters, yardmasters, and other key personnel. This streamlined approach ensures quicker issue resolution, enhanced troubleshooting, superior rate negotiations, and improved customer satisfaction.

We remain closely connected to the regulatory environment, ensuring we’re current with any changes and that each customer rail car is tracked, documented, and monitored for upcoming servicing needs. By promptly communicating modifications to customers, CLX assists in navigating the evolving regulatory landscape. Whether it’s coordinating repairs for outdated braking systems or facilitating transport to the nearest repair facility, we help clients maintain compliance and peace of mind.

 

Rail Shippers Who Receive Rail Service Management from CLX Logistics Receive:

Tailored Solutions and Rail Rate Negotiation

CLX Logistics provides individually tailored solutions to meet the unique needs of both large and small shippers in rail freight transportation.

With a specialty in rate negotiation, CLX ensures that businesses receive competitive pricing and cost-effective transportation solutions for every shipment.

Rail Freight Tracking and Visibility

CLX Logistics offers comprehensive freight tracking and visibility tools, allowing shippers to monitor the status and location of shipments throughout the transportation process.

By leveraging advanced technology and systems, CLX enhances transparency and enables real-time updates for improved logistics management.

Unmatched Railroad and Railyard Connections

CLX Logistics has long-established and valuable relationships with rail service operators, providing shippers unparalleled access to a vast network of railroads and railyards.

These connections enable CLX to navigate the complexities of rail operations and ensure smoother and more efficient transportation for clients.

Route Optimization and Network Studies

Leveraging its industry expertise, CLX Logistics conducts network studies to identify the most efficient routes for transporting freight.

By optimizing shipping routes, CLX minimizes transit times, reduces costs, and enhances your overall supply chain efficiency.

Improved Benchmarking, Procurement, and Bidding

CLX Logistics leverages our deep knowledge of the rail freight industry to optimize benchmarking, procurement, and bidding processes.

By analyzing market trends, negotiating favorable rates, and conducting efficient procurement practices, CLX helps businesses achieve cost savings and maximize operational efficiency.

This repertoire of capabilities prevents minor problems from escalating into more significant, expensive disruptions. It ensures smooth, effortless operations for our customers— translating into significant cost savings and enhanced rail freight transportation efficiency.

 

CLX Logistics is Here to Help

CLX Logistics stands out as an industry leader in rail management services. Armed with decades of experience and a deep understanding of railroads, regulations, and operational challenges, we offer a comprehensive suite of solutions to streamline operations, ensure compliance, and generate cost savings. By leveraging our insider knowledge, strategic partnerships, industry-leading technology, and customer-centric approach, we’re a trusted partner for businesses seeking reliable and efficient rail management services to mitigate and remove problems many have become accustomed to and ensure satisfaction for our customers.

Ready to apply our rail management expertise to your business operations? Contact a CLX representative today and discover how we can leverage our services to improve your rail freight operations immediately.

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Logistics professionals need to make critical decisions about their freight every day, including selecting the optimal modes of transport. Sometimes it’s an easy decision, but not always, and it can be especially confusing for newcomers to the industry. Air freight and ocean freight are two of the most common methods of transportation to consider when moving goods throughout your supply chain.

Though there are obvious differences between air and sea transportation, shippers must frequently consider various variables and potential unknowns. This in-depth guide on air and sea freight will help you grasp the pros and cons of each and guide you toward the best decisions for your upcoming shipments.

What to Know About Air Freight

When to Use Air Freight?

Air freight involves transporting cargo via airplanes. Although it represents a smaller volume of global freight than sea freight, air freight has distinct benefits. Generally, the choice of transportation mode depends on factors like:

• The type of goods being shipped (e.g., perishable food items, pharma, flowers)
• Delivery speed requirements
• The volume of goods to be transported
• Distance between origin and destination ports
• Facilities and access (e.g., warehousing, yards, transport connectivity)

 

As a general guideline, air freight is more suitable for transporting smaller volumes and high-value goods, while sea freight makes more sense for bulk shipments.

What is the Cost of Air Freight?

Air freight is most suitable when shipping costs are below 15-20% of the value of the goods. For lightweight shipments, use a chargeable weight calculator to determine whether your shipment will be billed based on actual or dimensional weight. While air freight is faster, safer, and more dependable than sea freight, it comes with a higher price tag – a $195 ocean shipment could cost $1,000 by air. Additionally, airlines impose stricter regulations on hazardous materials such as chemical products.

What is Air Freight Environmental Impact and Emissions?

The aviation industry is a rapidly expanding global transportation sector, and like other forms of transport, it contributes to various negative environmental impacts. Some of the risks associated with air transport include:

• Air pollution, primarily from greenhouse gasses
• Incidental water and soil pollution
• Noise pollution
• Waste generation with high amounts of dangerous waste

Under the European Union (EU) Emissions Trading System, all European flights must monitor, report, and verify their emissions. Each airline receives a tradeable allowance covering a specific level of emissions from its annual operations. Air cargo has a larger carbon footprint compared to sea freight.

What to Know About Sea Freight

When to Use Sea Freight?

Sea freight is the most prevalent method for transporting goods, especially in international trade. Goods are packed in intermodal containers for transport by cargo carriers. It is a less-expensive option when compared to transporting cargo by cargo planes. As a more cost-effective option compared to air freight, sea freight is better suited for transporting bulk cargo. The handling of large or irregular-shaped loads is are easier when ample space is available, such as in container yards, ship decks, and cargo holds.

Sea freight is generally safer for shipping chemicals, as risks are limited compared to air freight. The slower transportation speeds and controlled environments aboard cargo ships help ensure the secure handling and containment of hazardous materials during transit, further minimizing potential hazards.

Most common types of sea freight are:

• Roll-On Roll-Off (RORO)
• Bulk carriers
• VLCC, LNG, and CNG carriers

RORO services involve large ships designed to transport vehicles in bulk. Vehicles are driven and secured in designated slots within the RORO vessel using ramps. Upon reaching the destination, the vehicles are driven out and stored in respective yards for customer collection.

Bulk carriers transport bulk cargo, such as grains, ores, and cement, stored in the ship’s holds as loose cargo.

Very Large Crude Carriers (VLCC) are vessels specifically engineered to transport liquid cargo like crude oil from oil-producing regions to refineries and storage facilities across the globe. They are frequently used for long-haul voyages from the Middle East to Asia, Europe, or North America. LNG and CNG carriers are similar vessels designed to transport bulk gases such as Liquefied Petroleum Gas (LPG), Liquefied Natural Gas (LNG), or Compressed Natural Gas (CNG).

What is the Cost of Sea Freight?

On average, sea freight is considerably more affordable than air. A World Bank study reveals that shipping goods by air can be up to 16 times more expensive than sea freight.² For the most cost-effective overseas shipping method, sea freight wins.

What are Sea Freight Environmental Impact and Emissions?

The average cargo ship produces 16.14 grams of CO2 per metric ton of goods shipped per kilometer. That same ship also emits an average of 140 million tons of CO2 annually, while bulk carriers emit 440 million tons.¹ With this data, it’s easy to see significant potential for reducing the carbon footprint the cargo freight sector leaves behind.

Various technical and operational approaches can help lower carbon footprints, including propulsion efficiency devices, weather routing, slow steaming, and contra-rotating propellers. 2015 emphasized the need to curb pollution as shipping emissions accounted for approximately 13% of the transport sector’s EU greenhouse gas emissions. The EU has since intensified efforts to reduce greenhouse gas emissions through monitoring, reporting, and verifying CO2 from bulk ships using EU ports, establishing targets, and additional short- and long-term measures.¹

Air Freight vs. Sea Freight: Picking the Best One For Your Business

Air freight is faster than ocean freight, reaching its destination in only a day or two. While the logistics surrounding sea freight are constantly being refined and improved, it just can’t compete with air in terms of speed.

Shippers primarily choose air service when speed is of the utmost importance. Air freight allows for shorter timetables than ocean service, which is crucial for items with short shelf lives or time-sensitive chemical shipments. However, the price for faster service is almost always higher than monetary costs that rapidly increase with the weight of the freight.

Ultimately, determining what makes sense for your shipping strategy is up to you in any given situation. Evaluate when your goods must arrive at their destination, your budget, and how each mode will affect your business’s top needs. If you have a stringent, fast-approaching arrival deadline and your budget allows, ship via air. Air freight offers speed, safety, and reliability, making it ideal for transporting perishable goods, time-sensitive deliveries, and even specialized chemical or HAZMAT freight. If you’re more concerned about costs or need to move bulk cargo, sea freight offers a more economical and highly reliable option.

Ensuring Logistics Success

By evaluating the type of goods, speed of delivery, distance, and environmental impact, businesses and consumers can choose the most appropriate method for their shipping needs. As global shipping, particularly chemical logistics, becomes increasingly complex, partnering with a reliable logistics provider like CLX Logistics can help you navigate these challenges and develop tailored solutions for your unique requirements.

Looking to Get Started with Air Freight or Sea Freight Shipping? Contact CLX Today

Contact us to learn how CLX can support your business in handling chemical shipments and other logistics needs.

1. Kilgore, Georgette. “Air Freight vs. Sea Freight Carbon Footprint (The Real Numbers in 2023).” 8 Billion Trees. March 28, 2023. https://8billiontrees.com/carbon-offsets-credits/carbon-ecological-footprint-calculators/air-freight-vs-sea-freight-carbon-footprint
2. Air Freight: A Market Study with Implications for Landlocked Countries.” World Bank. March 31, 2023. https://www.worldbank.org/en/topic/transport/publication/air-freight-study

Intermodal transportation is a commonly used term in freight and supply chain logistics, but what does it mean? The experts at CLX Logistics are here to explore the concept of intermodal transportation, how it works, the types of intermodal transportation, who can benefit from it, what can be shipped using intermodal, and the advantages it offers for shipping bulk liquid chemicals

Continue reading “What is Intermodal Transportation, and How Does it Work?” →

3PL vs. 4PL: What’s the Difference?

Chemical shipping can be a complicated and involved process. For many companies, outsourcing their shipping efforts is the best way to create economical logistics programs while maintaining a focus on core competencies. But to enjoy the benefits of outsourcing, you must choose a partner who will meet your needs and maintain industry standards. One of the primary considerations in selecting the right provider will be whether they’re a third-party logistics (3PL) provider or a fourth-party (4PL) logistics provider.

Often confused, 3PL and 4PL providers share some characteristics but ultimately fulfill different logistics needs for their partners, which is why it’s essential to know the difference between the two before signing a contract.

A 3PL manages specific areas of the supply chain for a chemical shipper, for example, the chemical freight company that handles transportation. A 4PL has a much broader reach, overseeing these individual networks and managing the entire logistics operation. 4PLs handle comprehensive planning and execution for a client, determining what modes and networks need to be tapped for appropriate shipping, establishing who will manage these, and creating the processes and governance for each mode. Simply put, a 4PL manages your entire supply chain, while a 3PL focuses on logistics.

Let’s take a deeper dive into 3PLs and 4PLs and what sets them apart.

Continue reading “3PL vs. 4PL: What’s the Difference?” →

CLX Logistics is Recognized as a Leading Benchmarking Services Provider by Gartner®

Gartner® has recognized CLX Logistics for our global chemical transportation benchmarking capabilities in its Market Guide for Benchmarking Services for Transportation Rates and Logistics Performance. This publication aims to explain the goals and objectives of logistics professionals when considering and comparing rates and metrics from various benchmarking providers. The report also compares several logistics providers in multiple industries and considers their freight spend benchmarked, primary modes supported, and cost per benchmark.

CLX Logistics’ inclusion in this list showcases our effective and competitive benchmarking services and recognizes our efforts to improve benchmarking and cost-savings for our clients. We’re highlighting the specificities of this market guide and how this industry-leading consultant evaluates CLX Logistics and other companies.

Continue reading “CLX Logistics Benchmarking Recognized by Gartner®” →

Shipping chemicals is a highly complex process involving many regulations, requirements, and safety considerations. The process becomes even more challenging when shipping chemicals across international borders due to each country’s unique customs and compliance requirements.

To help businesses navigate this complexity, the experienced professionals at CLX Logistics have compiled a comprehensive guide to international chemical freight logistics. Drawing on decades of experience in global logistics, we’re offering practical advice on effectively and safely transporting chemicals internationally while minimizing costs and maximizing efficiency.

Whether you’re a seasoned professional or new to the industry, these valuable insights and strategies will help you successfully navigate the complex world of international chemical shipping. Continue reading “How to Ship Chemicals Internationally: What You Need to Know” →

After nearly three years of a global pandemic, supply chain interruptions, labor shortages, and lingering economic uncertainty—manufacturers, shippers, and logistics providers have learned to plan for the future with calculated caution. As global costs rise, supply is increasing across most industries due to a drop in demand. As many individuals and companies prepare for a potential recession, they’re determined to minimize losses by preemptively cutting costs.

Estimates have shown drops in sales for this year and a potential 5-10% slowdown in business, so many companies are searching for cost-saving avenues aside from or in addition to their usual practices—and looking for alternative options and improvements for shipping and logistics is a prime road to travel down first.

While short-term solutions may dampen the effects of a recession or economic downturn, implementing lasting procedures that strengthen your supply chain, logistics, and operations will help weather potential storms and reinforce resiliency for future economic hiccups.

To help you get there, here are three tips for successful chemical logistics budgeting.

Tip 1: Save with Benchmarking

Freight rates are declining, especially dry van shipping, and clients want to ensure they’re paying cost-competitive rates. Therefore, shippers must actively pursue the most affordable and efficient modes of transportation. Benchmarking is a critical tool that all logistics professionals should leverage annually, if not every quarter, to achieve this goal.

Benchmarking from CLX Logistics helped a client with 19 million in freight spend save over 18% of costs after the cost-saving potential of a mode switch was revealed through benchmarking data analysis.

Benchmarking compares your current shipment rates against market averages, rates paid by peers in your vertical, and against other modes of transportation, i.e., air versus rail or truckload.

This data helps determine the most cost-efficient mode and can help identify other areas of opportunity, such as locally sourced materials, instead of relying on distant or international procurement.

Market volatility determines how long freight rates remain valid and are typically updated yearly. We recommend quarterly benchmarking for 2023 and updating your modes of transport if necessary due to the predicted economic uncertainty.

CLX Logistics’ procurement team will find the most efficient custom-fit solution for your freight. Contact us for a benchmark today to get started.

Tip 2: Make Flexible Shipping a Premium Service

In the chemical vertical, most companies are driven by meeting and exceeding client demands, and fast shipping is a demand worth paying a premium for. This expectation is why flexible shipping options should be available at a higher cost to ensure you meet margins. Your clients expect expedited shipping options, especially in a recession when minor hiccups can have major consequences. Structure your service offerings to charge for faster shipping so that this expedited offering doesn’t impact your bottom line. This price recovery creates more flexibility in your budget should any economic hiccups interrupt your operations.

Setting rates is complex, as every company’s needs are unique. Talk to our team to determine the right shipping charges for your logistical needs, capacity, and capability.

Tip 3: Regiment Shipping Lead Time

While easier said than done, providing longer lead times in times of uncertainty is crucial to avoid mistakes and ensure proper procurement, brokerage, and on-time shipping. Faster and enhanced communication between shippers and their logistics provider once an order is placed, will lead to better pricing and expedited delivery. You’ll also build better relationships with your clients when communication is enhanced and you exhibit the qualities of a trusted and reliable partner.

CLX Logistics helps clients establish a proper lead time cadence that is custom fit to match their needs and capabilities. Get to know CLX Logistics and see what we can do for you.

Chemical Logistics Budgeting Best Practices 

To properly budget for 2023 while incorporating our three tips for success, we recommend a tactical approach that begins with leveraging CLX LaneLogix™ for benchmarking your current freight rates and processes and utilizing the gathered data to adjust modes, shipping prices, lead times, and any other necessary adjustments. Our experts will help you create a resilient operation and budget for the economic uncertainty of the upcoming year.

Our supply chain procurement process, extensive rate database, and automated RFQ tool benchmark current rates against best-in-class shippers before placing online carrier bids. Following the auction process, we use CLX LaneLogix data to determine the best carrier mix and savings based on service levels, capacity commitments, and rates.

Our industry-leading technology and expert logistics professionals will simplify your procurement processes, reduce operational costs, and create significant savings across all global modes of transportation. We recommend quarterly benchmarking to ensure you continuously operate with the best rates as the market ebbs and flows.

Data-driven adjustments using CLX LaneLogix and CLX Gravity, our analytics platform for improving transportation, will ensure that your operations remain steadfast and your budget is protected.

CLX Gravity improves analytics through comprehensive data integration capabilities that combine internal and external sources. The intelligent curation, organization, and analysis of key data points provide data-driven insights to build and sustain a recession-proof supply chain.

Let’s Get Started

With these powerful tools at your disposal and our expert assistance, CLX Logistics will help your unique company develop a best practice, data-driven approach for properly leveraging benchmarking data to make flexible shipping a premium service and better regiment lead times. We’ll ensure your 2023 budget is prepared to keep your logistics and shipping operations uninterrupted.

While economic uncertainty and a potential recession are never easy to navigate, the experts at CLX Logistics have the tools, knowledge, and dedication to ensure our assistance will strengthen your 2023 budget through data-driven preparation.

Ready to begin budgeting for 2023 with CLX Logistics? Contact a managed transportation expert today.

Would you trust a mechanic that didn’t know how to change a tire? Probably not, which is why standards and best practices are established to show a basic level of competence that can be expected from every service or product provider. Every business needs to understand standards and best practices regardless of the industry. When it comes to logistics, this understanding and implementation can mean the difference between success and failure. Logistics can be complicated, and there’s always the potential for unforeseen problems in your supply chain.

Proper transportation management can help you mitigate risk, better control shipping speed, increase efficiency and adaptability, and lower costs. Follow these industry dos and don’ts to take full advantage of these benefits and avoid issues on the road, in the sea, or the air.

Do: Use a Good Transportation Management System

One of the best things you can do to increase your shipping capabilities and streamline operations is to install a solid transportation management system (TMS). A TMS combines valuable technology that helps you plan, execute, and optimize incoming and outgoing shipments while ensuring all deliveries are properly documented and compliant with industry standards and regulations. Transportation management systems have quickly become a necessity in the logistics industry, but not all TMS products are the same. Be sure your TMS is capable of the following:

• Increasing transportation visibility across your global supply chain
• Creating and tracking shipments, generating reports, and confirming deliveries
• Addressing capacity management issues for all freight flows
• Storing information in a centralized and easy-to-access platform

These are the essential elements of an effective TMS and a necessity for improving your logistics workflows.

Don’t: Forget About Chemical Freight Brokerage

When it comes to chemical shipping, freight brokerage can be incredibly complicated. You have to meet specific regulatory requirements and effectively manage safety and security concerns regarding hazardous materials while minimizing costs. Finding the right logistics partner and tools to help simplify the brokerage process is essential to success in chemical logistics, so be sure that chemical freight brokerage is a priority when establishing your transportation management operations.

Do: Take Advantage of Flexibility and Supply Chain Visibility

It can be hard to handle problems quickly and efficiently when you don’t have real-time transportation visibility over your shipments. Advanced telemetric tools allow you to keep a close eye on all shipments while they’re in transit, better managing customer satisfaction and keeping ahead of issues as they arise, granting you more control and flexibility with your shipments.

Do: Focus on Data

Data is essential when optimizing logistics capabilities and a vital part of any transportation management effort. How can you know what needs to improve without utilizing real-world data? Integrating data collection and analysis into your transportation management will provide valuable insight into your operations, exposing gaps and indicating where you’re currently succeeding, allowing you to improve wherever necessary.

Don’t: Use Outdated Technology

It may seem more straightforward to utilize the technology you’re familiar with regarding transportation management but using outdated tools can create problems and bog down operations. The technology you use in your logistics management should be capable of processing hefty amounts of data, analyzing that data, and utilizing any insights to improve operations and management. Older methods cannot deliver all this as efficiently as newer technology, and you don’t need to invest massive amounts into new tools as was the previous norm. Most transportation management systems from full-service managed logistics providers like CLX Logistics can give you access to the advanced tools you need without breaking the bank. TMS adoption can increase your return on investment over time so much that it covers and returns the initial implementation costs.

Do: Establish a Trusted Carrier Network 

The need for suppliers and carriers is growing each day, making it challenging to find available carriers you can trust. Establishing a network of trustworthy carriers you’ve worked with before ensures you have options. Qualified transportation management partners and 3PLs can provide this connection for clients, leveraging their freight brokerage relationships with high-quality carriers to expand your capacity without sacrificing peace of mind.

Do: Look into Transportation Management with CLX

Organizing the mentioned dos and don’ts into a streamlined and effective transportation management program can be difficult for chemical shipping professionals. But some partners like CLX Logistics can make it easier. CLX offers a full-service transportation management system that simplifies and optimizes your logistics with specific solutions to help you take control of your operations. Our unique platform gives you the advanced tools required to stick to these dos and don’ts with planning, freight procurement, tracking, and more.

All this and more is possible with CLX TMS, from enhanced supply chain visibility to better data collection to securing trustworthy freight partners.

The demands of the modern world require advanced solutions, and to ensure your logistics operations are well-managed and prepared for all future possibilities, contact CLX.