The efficiency of America's railroad network directly impacts supply chain costs and service levels across industries. With rail transportation handling approximately 40% of long-distance freight movement, understanding key performance indicators becomes essential for transportation managers making strategic decisions. Three critical metrics—average speed, terminal dwell time, and cars online—provide valuable insights into railroad operational efficiency and capacity utilization. These indicators, reported weekly to the Surface Transportation Board, offer supply chain professionals the data needed to optimize transportation spend and improve service reliability.
Current Speed Performance Reveals Network Efficiency
The current system-wide average speed of 26.6 miles per hour across Class I railroads represents the velocity of freight movement between terminals, excluding time spent at terminal locations. This metric has shown relative stability over recent years, with variations typically ranging between 25-28 mph depending on seasonal factors and network congestion.
Speed performance directly correlates with transit time predictability, a crucial factor in supply chain planning. When railroads maintain consistent speeds above 26 mph, shippers can rely on more predictable delivery windows, reducing the need for safety stock and enabling just-in-time inventory management. Conversely, declining speed averages often signal network congestion or operational challenges that can cascade into supply chain disruptions.
For transportation managers, speed metrics inform mode selection decisions. Rail shipments moving at higher average speeds become more competitive with truck transportation for medium-distance hauls, particularly when combined with cost advantages. Companies managing mixed-mode transportation networks use these speed benchmarks to optimize routing decisions and carrier selection strategies.
Terminal Dwell Time Impacts Overall Supply Chain Velocity
The current average terminal dwell time of 21.4 hours represents the duration railcars remain at terminal locations between customer release and train departure. This metric excludes cars on run-through trains, focusing specifically on cars requiring terminal processing or connection services.
Dwell time significantly affects total transit time calculations and inventory carrying costs. Extended dwell periods can transform otherwise efficient rail movements into lengthy supply chain delays. Companies shipping time-sensitive products or managing lean inventory systems must factor dwell time variability into their transportation planning and safety stock calculations.
Regional variations in dwell time performance also influence network design decisions. Terminals consistently achieving below-average dwell times become preferred routing points, while locations with extended dwell periods may warrant alternative routing strategies or additional buffer time in supply chain planning. We help clients analyze these performance patterns to optimize their rail transportation networks and reduce total logistics costs.
Cars Online Indicates Network Capacity and Demand
The current figure of 242,080 cars online across the Class I railroad network represents active railcar inventory, including cars on tracks, at customer locations, and in yards. This metric excludes stored cars, providing insight into deployed capacity and network utilization levels.
Cars online fluctuations indicate broader economic activity and seasonal demand patterns. Higher car counts typically correlate with increased freight demand, potentially leading to capacity constraints and service delays. Lower counts may signal reduced demand or improved operational efficiency in car utilization.
For supply chain professionals, cars online data helps anticipate service level changes and capacity availability. When car counts trend upward, proactive shippers secure capacity commitments earlier and consider alternative transportation modes for non-critical shipments. During periods of lower car utilization, opportunities may exist for negotiating improved service commitments or favorable rate adjustments.
Optimizing Transportation Spend Through Performance Analysis
Railroad performance metrics enable data-driven transportation decisions that directly impact spend optimization. Companies tracking these indicators can identify performance trends, anticipate service disruptions, and adjust transportation strategies accordingly. Regular monitoring helps transportation managers benchmark carrier performance and make informed decisions during contract negotiations.
Performance data integration into freight audit processes enhances spend analysis accuracy. When transportation teams understand the relationship between performance metrics and actual costs, they can better evaluate carrier proposals and identify opportunities for service level improvements. This analytical approach transforms raw performance data into actionable business intelligence.
Trax helps enterprises integrate railroad performance monitoring into comprehensive transportation spend management strategies, enabling better carrier selection and contract optimization based on actual performance data rather than historical assumptions alone.
Building Data-Driven Transportation Strategies
Class I railroad performance metrics provide essential insights for transportation spend optimization and supply chain efficiency. The current performance indicators—26.6 mph average speed, 21.4-hour dwell time, and 242,080 cars online—establish benchmarks for evaluating railroad service quality and capacity utilization.
Successful transportation managers incorporate these metrics into regular performance reviews, carrier evaluations, and strategic planning processes. By understanding how speed, dwell time, and capacity indicators affect total transportation costs, companies can make more informed decisions about modal selection, carrier partnerships, and network design.
Ready to optimize your rail transportation spend through better performance monitoring? Contact Trax today to learn how our freight data management solutions can help you analyze carrier performance metrics and reduce transportation costs through data-driven decision making.