Business operations tend to differ. Some entail service provision while others handle goods of all sizes. But with a growing business and a customer base from different regions, it can be challenging providing services to many clients without the right mechanisms in place.
One of the crucial mechanisms is transportation. There are different means of transport you can adopt, including sea, air, road, and rail. If you are considering rail transport to carry goods in bulk, read on to learn about the 5 biggest benefits of choosing rail freight.
1. It Is Affordable
In business, most decisions are made with costs in mind. You want to make profit, and an effective approach to do that is to reduce expenses.
In that case, you can use rail freight since it is quite affordable. For one thing, the interest costs, which are low, make up for the higher transportation costs.
An example is a company that ships 750 containers annually. Since the average cargo value is 250,000 euros for each container and the financial cost is 5% per annum, the daily interest cost is 37.52 euros for every container. Shipping goods door-to-door from China to Europe by rail, for instance, is faster than shipping by sea because it takes more or less 25 days.
As a result, you get to enjoy a saving in interest cost of 708 euros for each container. The money you save can be used to pay additional costs and build a better supply chain.
Rail freight is also affordable since it consumes less fuel. With less fuel costs, clients won’t have to pay high fees for the service as they would for road freight.
Another reason rail freight is cost-effective is that trains offer more space and can transport large volumes of cargo. Because there is a lot of space available, the price is lower.
2. It Is Safe
Many who have chosen railway transport to meet their needs highlight how safe it is. Rail freight is safe because there are minimal to no accidents on the rail. What’s more, investments in rail tracks, railway infrastructure, railway border crossing stations, terminals, and routings are continuous. Thus, your goods arrive at their destination in good condition.
Additionally, rail freight requires one trip, with no need to change trains. Hence, you won’t have to worry about cases of goods getting left behind during an exchange.
Even with the system's safety, you can upgrade the security by installing a GPS tracker on your freight. The tracker will enable you to see your goods in transit and take prompt action should any issues arise. Aside from monitoring your goods, you can share this data with your clients, so they can stay updated as well.
3. It Is Reliable
Reliability is essential when addressing your clients’ needs. You want to meet your end of the bargain by transporting goods on time. After all, delays frustrate clients, especially if they have already paid for the goods.
During transit, a lot could happen that could cause delays in deliveries, such as snarled-up traffic, accidents, bad weather, and a tired driver. In most cases, these are factors you will have no control over.
However, you won’t have to worry about delays if you adopt rail freight. In fact, delays don’t occur because railway trips follow strict schedules. Your goods will arrive as planned, and your customers will receive their goods on time. Therefore, rail freight increases customer satisfaction, helps attract more clients, and strengthens their loyalty.
4. It Is Environmentally Friendly
Today, most people are concerned about the environment, especially climate change. This is why many are looking for ways to protect the environment.
Because of its high emissions, the transport industry causes a significant impact on climate change. Most means of transport rely on diesel and petrol to run, which when burned, emit poisonous gases like carbon monoxide to the environment.
Railway transport is more environmentally friendly than other means of transport, such as road and air, as it only produces a small percentage of emissions. So, by opting for rail freight, you are helping reduce the negative impact on the environment.
5. It Is Capable Of Carrying Heavy Loads
Transporting many goods at once can prove to be a nightmare. If you adopt road transport, you’ll have to hire multiple trucks for transport. This approach is not only expensive but also risky. Your cargo may not reach its destination on time because of factors, such as bad weather conditions, accidents, traffic jams, or poor road conditions.
In contrast, rail freight used for heavy loads eases the burden. As mentioned earlier, trains are built to carry high volumes of freight. For example, a single double-stacked train can haul about the same amount as 280 trucks.
Apart from their capability to transport large loads, rail freight isn’t hampered by inclement weather or congestion the way road freight is.
Conclusion
Rail freight isn’t just a reliable means of transport but also an eco-friendly one that is good for both the environment and your business. Goods are safely delivered on time, and your clients remain satisfied with your services. Rail freight is simply the right way to go for shipments.
