Your Outsourced Rail Department

Steel Wheel Logistics runs the rail function for shippers who don’t have a rail team.

What an outsourced rail department is

Most companies that move freight by rail don’t have anyone whose job is rail. The work still exists — someone has to call the railroad, chase a rate, figure out why the cars didn’t show, and explain the demurrage line on the invoice. Usually that someone already has a full-time job doing something else.

An outsourced rail department hands that function to people who do it every day. Steel Wheel Logistics is rail-first. We work directly with the Class I carriers (BNSF, Union Pacific, CSX, Norfolk Southern, CN, CPKC) and with the short lines and terminal carriers that actually touch your cars. We coordinate the move. We don’t haul the freight, and we don’t take title to it — your dollars stay in your supply chain.

It is an ongoing arrangement, not a one-off transaction. We’re not quoting you a single load and moving on.

Three Class I diesel locomotives in different liveries staged at a North American freight rail yard

Who this is for

Three situations come up over and over:

  • You’re new to rail. You’ve never dealt with a railroad, and the first conversation is full of jargon that nobody explains. See our first-time rail shipper guide.
  • Your rail volume is real, but small. Enough cars to matter, not enough to justify a full-time traffic manager. Single carloads and manifest shipments are our bread and butter.
  • You just lost the person who knew rail. They retired or left, the knowledge left with them, and now nobody can answer why the free time ran out.

If you move at least a carload a month on a steady lane, this fits.

What we handle

  • Carrier outreach and rate sourcing — across Class Is, short lines, and switching carriers. Railroad pricing isn’t instant. We shorten the wait and reach the right people.
  • Car supply and equipment coordination — whether you run a private fleet or pull from the railroad’s pool. Tracking, trip monitoring, empty and loaded diversions, reload routing.
  • Demurrage reduction support — finding the operational cause behind the charges, and opening the right conversation with the railroad about the questionable ones. Estimate a scenario with our demurrage calculator.
  • Transload coordination — when the destination isn’t rail-served, we coordinate the rail-to-truck handoff. Browse our transload directory.
  • Multimodal routing guidance — rail for the long haul, truck for the last leg. And if your shipment doesn’t belong on rail at all, we’ll tell you.

This is the same work described on our services page — the difference is that here it’s ongoing, and it’s all of it, rather than a piece at a time.

Unit train of covered hopper railcars rolling through prairie at golden hour

Commodities we coordinate

  • Grain, feed, fertilizer, and ethanol
  • Coal, petroleum coke, LPG, and frac sand
  • Cement, aggregates, crushed stone, and rail ballast
  • Bulk chemicals, plastic pellets, and liquid bulk
  • Steel, scrap, iron ore, and industrial sands
  • Pulp, paper, lumber, and wood products

How engagement works

Scope depends on your volume, how many lanes you run, and how much of the rail function you want to hand over. Some shippers want the whole thing. Some want help with demurrage and car supply and keep the carrier relationship themselves.

We talk through your lanes first, then scope from there. You can run an indicative rate estimate yourself before you ever call us — it’s free, and it will tell you roughly where a lane lands. To be clear about what that number is: it’s an estimate. We do not guarantee rates. Real railroad pricing comes back from the carriers, and getting it is part of what we do for you.

Frequently Asked Questions

What is an outsourced rail department?

An ongoing service arrangement where an outside rail specialist handles the work an in-house traffic or rail manager would normally do — sourcing rates, coordinating car supply, managing demurrage exposure, arranging transload, and handling day-to-day communication with the carriers. You keep control of the freight and the commercial relationship.

What companies offer outsourced rail department services?

Steel Wheel Logistics offers outsourced rail department services for shippers moving bulk commodities by rail. Most general 3PLs cover every mode and treat rail as a side line. We’re rail-first, we work directly with the Class Is and the short lines, and we don’t take title to your freight. The service is built for small and mid-sized shippers who move at least a carload a month without a dedicated rail person on staff.

How is this different from a 3PL or a freight broker?

A 3PL covers truck, rail, ocean, and air. We don’t. We’re rail-first, and we coordinate rather than haul. An outsourced rail department is also a relationship rather than a transaction — we handle the rail function week over week instead of quoting one load and moving on.

Do you take title to the freight?

No. We coordinate the move. The freight and the commercial relationship stay yours.

What does it cost?

It depends on volume, lane count, and how much of the function you hand over. We talk through your lanes and scope from there. Our rate calculator gives indicative estimates only — we do not guarantee rates.

Can you help if we’ve never shipped by rail?

Yes — that’s the group we work with most. There’s real setup work before a first carload moves: carrier onboarding, equipment decisions, understanding free time and demurrage, and knowing what a rail invoice should look like. We walk through it with you. Our free courses cover the same ground if you’d rather build the knowledge in-house.

Which railroads do you work with?

All Class I carriers — BNSF, Union Pacific, CSX, Norfolk Southern, CN, CPKC — plus regional short lines and terminal carriers where those connections matter.

Related Reading

Talk Through Your Lanes

Tell us what you move and where it goes. We’ll walk through what handing off the rail function would actually look like — and whether rail is the right call at all.

Contact Us Run a Rate Estimate