Chemical Plant

Rail Challenges for Chemicals Producers

For many chemicals producers, rail is a primary mode of transportation, moving millions of tons of raw materials and finished products across North America. However, rail shipping comes with challenges—delays, equipment shortages, and a lack of communication can drive up costs, and shippers often lack the real-time information needed to plan ahead or respond effectively.

Currently, shippers only receive Car Location Messages (CLMs) for their own cars, providing limited insights into broader rail network issues. This leaves them unaware of key factors like congestion, service disruptions, and actual transit times. The consequences?

Unreliable ETAs: Without accurate arrival predictions, scheduling plant operations, equipment, and personnel becomes difficult and costly.

Demurrage Disputes: Inaccurate placement reports lead to billing conflicts and unexpected fees.

Production Delays: Chemical manufacturing relies on precise feedstock deliveries, and outdated rail data can result in unexpected shortages.

No Service Transparency: Without visibility into railroad operations, shippers struggle to identify delays and negotiate better service.

What if chemicals shippers had real-time rail data that went beyond basic CLMs?

 

4 Ways Real-Time Rail Data Solves Shipping Challenges for Chemicals Shippers

1. Accurate First-Mile & Last-Mile Management

The Issue: A train’s last location update typically happens when it leaves a serving yard, which could be hours away from a facility. This means shippers only realize a delay when a train fails to arrive, causing misaligned schedules and downtime.

The Solution: Independent real-time tracking provides precise ETAs based on actual train movements. RailState’s sensors detect when a train is nearing a facility and alert shippers to delays and unexpected stops.

The Benefit: More accurate scheduling reduces idle time, prevents disruptions, and improves efficiency in loading and unloading.

 

2. Verified Rail Delivery & Billing Accuracy

The Issue: Railroads’ placement reports can be delayed or incorrect, leading to billing disputes and unnecessary demurrage fees. Manually verifying deliveries takes time and resources.

The Solution: RailState sensors at plant entrances record exact arrival times, car details, and conditions, providing clear and indisputable proof of deliveries.

The Benefit: Shippers can resolve billing disputes more effectively, reduce demurrage charges, and maintain accurate records for financial transparency.

 

3. Moving on Market Changes When It Matters

The Issue: Chemical production depends on consistent deliveries of raw materials and trading in the market, but available market data lags behind, making it difficult to anticipate problems and seize opportunities.

The Solution: RailState’s real-time network monitoring provides immediate insights into volume shifts, congestion, and service disruptions, allowing shippers to act before issues escalate.

The Benefit: Companies can prevent costly plant shutdowns, ensure stable production schedules, and proactively manage risks.

 

4. Improving Collaboration with Railroads

The Issue: Shippers often lack data on where and why service failures occur, making it difficult to negotiate improvements with railroads.

The Solution: Real-time tracking gives full visibility into rail network delays, helping shippers identify bottlenecks and work with railroads to address them.

The Benefit: Stronger collaboration with railroads leads to more reliable service, fewer delays, and long-term operational improvements.

 

The Future of Rail for Chemicals Producers

Chemical supply chains are too important to rely on outdated and incomplete data. With real-time rail tracking, shippers can lower costs, improve reliability, and keep production running smoothly.

Ready to take control of your rail operations? Learn how RailState’s real-time network insights can transform your rail strategy today.

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