A ratemaking technique that compensates for the difference in actual rail mileage between a short-route and long-route railroad by adjusting the rate division. It ensures that each railroad in a joint rate receives a fair share based on the miles it hauls the freight. Mileage equalization promotes competitive routing over multiple rail paths.
The primary transportation charge for moving freight between origin and destination, covering the over-the-road or mainline portion of the movement. Linehaul rates are the base rate component before the addition of fuel surcharges, accessorials, and terminal charges. Linehaul revenue is the largest single revenue source for railroads.
The charge per unit (typically per car, per ton, or per container) for transporting a commodity between specified origin and destination points. Rates may be published in tariffs or established through confidential contracts. Rate levels are influenced by distance, commodity, car type, volume, and competitive conditions.
The transfer of freight cars and the accompanying waybills between two connecting railroads at a junction point. Interchange rules, governed by AAR circulars, define responsibilities for car condition, billing, and liability. It is the mechanism that enables single-bill, multi-railroad shipments across the North American network.