Divisions

Summary of Divisions

The pro rata sharing of freight revenue of a given shipment interchanged between two or more railroads. Since there is no national rail monopoly in the United States, and there are hundreds of rail carriers operating within the country, cargo moving over long distances is apt to travel over the lines of more than one carrier. In such cases the freight earned for the entire rail move will be divided among the carriers, usually in relation to the number of miles traveled in each carrier's system. The term division is also used in those cases where freight revenue is divided between a railroad and another carrier, as in the case of a division of freight with an ocean carrier on a land-bridge movement.

(Main Author: William J. Miller)