Rail scrap brokers and the importance of logistics

rail scrap brokers and logistics

In the recycling business, logistics reign supreme. They play into the buying price. They play into the selling price. Put simply, they play into every aspect of our business. Which makes a lot of sense if you stop and think about it. After all, if you can’t smoothly and efficiently move your rail scrap material from point A to point B, not to mention, track it all along its route, you can’t serve your buyers and sellers with the efficiency, reliability and prices they deserve.

Efficient rail scrap brokers are cost efficient rail scrap brokers

In the recycling industry, with freight charges and more, it can cost serious money to move material from point A to point B. In fact, the money can be so “serious”, it makes or breaks a deal that a team of rail scrap brokers is bidding.

But just because it’s expensive doesn’t mean it’s something that can simply be cut out of a budget. That’s certainly not the case at all. After all, rail scrap has to get to its destination no matter what the cost is. Or at least it does if a given rail scrap broker would like to stay in business. So bet your bottom dollar, at Recycling Consultants, we’re going to deliver the best in logistics.

Methods of moving used by rail scrap brokers

Rail scrap brokers move their scrap via three different methods: truck, rail and barge. The method picked depends upon the scrap rate negotiated, the type of material being moved, and the point A and point B of the transaction at hand. Once those factors are determined, rail scrap brokers can decided the best routing and best means for transportation.

At Recycling Consultants, we move our materials via trucking and rail service. We use two different types of trucks to move our materials: flat beds and steel dump trucks. Dump trucks are used specifically for OTM, or other track material, which consists of plates, spikes, switch stands and any other material that is used by the railroads to hold the rail to the ties.

The future of logistics for rail scrap brokers

As rail scrap brokers, we can tell you one thing is certain when it comes to scrap logistics – nothing is certain. Change is rampant and to be successful, a scrapper must evolve with the times.

For instance, in four years, the cost of fuel has greatly changed the way we handle logistics. Just four years ago, in 2009, we were moving trucks at around $1.75 per mile. Today, they average around $2.50 per mile. That’s a big difference in a short amount of time. That increase in price means we have to be much more careful with the routes we choose as well as getting the most out of a given run.

Logistics are one part of a much bigger Scrap Management Program

While one could argue (we just did, in fact) that logistics are crucial to our success, there are other important elements as well we’ve had to master as well. Request our Railroad Scrap Management guide below.

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