Is UPS quitting the railroads?

[barnyard]

The FNN is reporting that 70 feeder jobs are being filled in my state so that UPS can pull all loads off the railroads in my area. Boggles my mind to think that the BNSF has killed that cash cow. 15ish years ago, UPS was Santa Fe's largest customer, in terms of money spent. UPS was very close to BNSF largest customer.

 

[Anonymous 11]

No way ups saves way to much money putting trailers on the rail.

 

[barnyard]

Not now. Any volume we get from either coast is at least a day late and it is because of train delays. Monday's are our heaviest days now, because the RR has 2 days to get late loads into town.

 

[oldngray]

Maybe just use rail for coast to coast instead of areas in between.

 

[Jones]

Haven't heard anything about that around here, this would be big news for sure.

 

[TUT]

Maybe just use rail for coast to coast instead of areas in between.

But those are the routes that your competition is beating you in transit times.

 

[cino321]

I can see it being unreliable. The government has neglected railroad infrastructure for decades. It's slow, old, and extremely limited.

Good for the feeder drivers, bad for the people who work for BNSF.

 

[MrFedEx]

No way ups saves way to much money putting trailers on the rail.

Bingo. There is no economically viable alternative to rail. Trucking is far more expensive, and rail can be just as fast, if not faster than a team trucking operation. You'll never see UPS move away from rail.

 

[TUT]

Bingo. There is no economically viable alternative to rail. Trucking is far more expensive, and rail can be just as fast, if not faster than a team trucking operation. You'll never see UPS move away from rail.

UPS and Fedex's transit times show that from A to B rail isn't faster. Is this how UPS makes up for Union Driver Wages? Using cheaper back-end methods?

Sort of funny you say "There is no economically viable alternative to rail" your company is Airline and Trucks and the Ground segment is all trucks. They have viable businesses. Myth Busted.

 

[QKRSTKR]

I thought 104 feeder said fedex was beating us in transit time because of the rail. It was taking us a day longer.

 

[Jones]

UPS and Fedex's transit times show that from A to B rail isn't faster. Is this how UPS makes up for Union Driver Wages? Using cheaper back-end methods?

Sort of funny you say "There is no economically viable alternative to rail" your company is Airline and Trucks and the Ground segment is all trucks. They have viable businesses. Myth Busted.

I see plenty of fedex trailers at the railyard.

 

[barnyard]

I can see it being unreliable. The government has neglected railroad infrastructure for decades.

Railroads are privately owned businesses. The government has nothing to do with railroad infrastructure investment.

Best sticking to what you know, railroads are not one of them.

 

[TUT]

I see plenty of fedex trailers at the railyard.

I doubt it's many at all in the grand-scheme. I'll ping for a number. I wasn't aware of anything moving rail of note.

 

[Jones]

I doubt it's many at all in the grand-scheme. I'll ping for a number. I wasn't aware of anything moving rail of note.

It's a lot.

 

[barnyard]

I thought 104 feeder said fedex was beating us in transit time because of the rail. It was taking us a day longer.

It is a pretty well known industry fact that FE beats UPS transit times because they run teams vs UPS using trains. UPS has tried to get the RRs to run coast to coast trains, but the railroads found them too difficult to run on time, so gave up on them.

 

[barnyard]

It's a lot.

I see quite a few also.

Anything shipped where the transit time includes a weekend, both carriers use trains.

 

[barnyard]

You'll never see UPS move away from rail.

It has already happened in many markets. UPS runs teams between many markets to speed transit times over rail.

 

[cino321]

Railroads are privately owned businesses. The government has nothing to do with railroad infrastructure investment.

Best sticking to what you know, railroads are not one of them.

Never said the railroads weren't owned privately.

If the government did invest in the railroads like they invest in other private projects that benefit the general public it would potentially become a extremely efficient transportation network for cargo and people.

 

[oldngray]

Never said the railroads weren't owned privately.

If the government did invest in the railroads like they invest in other private projects that benefit the general public it would potentially become a extremely efficient transportation network for cargo and people.

rofl. It would make money like it did with Amtrak?

 

[UpstateNYUPSer(Ret)]

The railroads are riding the Bakken shale oil boom and UPS is on the outside looking in.


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