Why did BNSF start the Certificate of Transportation (COT) program?
BNSF seeks a means to establish market based rates to improve logistical efficiency, and to provide forward rates for future business. The COT program is the result of many suggestions from the grain trade and the transportation industry. BNSF, through the COT program, is working to make the system more efficient by having the market participate in the setting of rates through the bid system; providing locked-in rates for forward business by freezing the tariff rate on either the day the COT is purchased, or the first day of the shipping period; guaranteeing performance in the placement of cars through a car guarantee; and permitting better logistical planning by the railroad.
