Beyond the Freight Rate: Three Questions to Strengthen Your Railcar Strategy
Negotiating a competitive railroad freight rate is important. But what about the cost of the railcar carrying your product—and the time that car spends waiting to move?
For chemical, petroleum, agricultural, and industrial shippers, equipment decisions can have a significant effect on total transportation costs. A major railcar leasing acquisition offers a timely reason to review those decisions.
On October 19, 2026, KKR announced an agreement to sell Infinity Transportation to Ares-managed funds for approximately $2.9 billion. Infinity owns and manages approximately 50,000 railcars serving more than 350 customers across North America. The transaction is expected to close in the first quarter of 2027, subject to customary conditions and regulatory approvals. Ares plans to support continued fleet growth, citing manufacturing reshoring and supply chain resilience among the investment drivers.
The announcement does not establish that lease rates will rise or that equipment shortages are ahead. It does, however, put three practical questions on the table.
At Russell-Kroese Partners, we help shippers connect these questions to their broader rail transportation strategy: what they spend, how their equipment performs, and where they have opportunities to improve.
1. How could railcar leasing costs and contract terms affect our business?
A monthly lease payment tells only part of the story. Maintenance responsibilities, storage expenses, return conditions, and the length of the commitment also influence the value of an equipment agreement.
A lower lease rate may offer limited savings if cars sit idle, require costly maintenance, or remain under contract after transportation needs change.
RKP can help shippers evaluate equipment costs alongside railroad freight rates and operating performance. That means examining the full transportation picture, including:
Lease expenses and renewal timing.
Maintenance responsibilities and related costs.
Storage, demurrage, and other accessorial charges.
Fleet utilization and cost per loaded shipment.
The goal is to understand what it actually costs to move your product—and identify which decisions can improve that result.
2. Will we have access to the equipment we need?
Additional investment in railcar fleets may create opportunities, but a larger fleet does not automatically mean the right equipment will be available for every commodity, lane, or shipping season.
Shippers need equipment that fits their products, loading facilities, customer requirements, and service expectations. They also need to understand how effectively their existing cars move through the supply chain.
RKP can help assess whether equipment needs reflect a fleet shortage, an operating constraint, or a combination of both. A review can examine shipment forecasts, car cycle times, loading and unloading delays, seasonal demand, and storage requirements.
That distinction matters. Adding railcars may be appropriate when demand grows. In other situations, improving fleet productivity may help a shipper move more freight with the equipment already under its control.
The starting question should be: How much productive capacity does our business need, and what is the best way to provide it?
3. Should we reconsider our equipment strategy and negotiating position?
As ownership in the leasing market evolves, shippers should review how their equipment commitments support their business plans.
Owned cars, leased equipment, and alternative arrangements each involve tradeoffs in capital, flexibility, maintenance responsibility, and availability. The right approach depends on the shipper’s volumes, commodities, lanes, and tolerance for long-term commitments.
RKP can help shippers compare those options and prepare for equipment and transportation negotiations with a clearer understanding of their needs.
That preparation can include reviewing lease expirations, testing fleet requirements against different volume scenarios, and identifying opportunities to align equipment commitments with railroad service and customer demand.
For companies preparing for 2027 negotiations, beginning that work before a renewal deadline provides more time to evaluate alternatives and establish priorities.
Look Beyond the Freight Rate
Railroad rates, equipment costs, and operating performance are connected. A competitive line-haul rate can lose value when cars spend too much time waiting, while a well-managed fleet can strengthen the economics of an entire transportation program.
RKP brings rail and logistics experience to help clients evaluate those connections and turn them into practical decisions.
Before your next railcar lease renewal or railroad negotiation, contact Russell-Kroese Partners to evaluate your total rail transportation costs, review your equipment strategy, and identify opportunities to improve fleet productivity.
Sources and Further Reading
KKR: KKR to Sell Infinity Transportation to Ares for $2.9 Billion, October 19, 2026.
Reuters: KKR to Sell Railcar-Leasing Company Infinity to Ares, October 19, 2026.