Right now capacity is so short hauling anything food and paper plus medical equipment that rates are about double what they were just 2 months ago in those areas. Why trying to keep the warehouses full for those that are in a panic that they are on lockdown. Hell my normal day is running to the stores for my drivers getting their supplies for their runs things like drinks and frozen meals and other items they need. Then either the boss pays me back or the driver does. Yes I do care for my drivers they are on the freaking front lines of this crap. Heck my husband is also on the front lines he got bored of being a stay at home parent and is in a call center taking healthcare calls from the East Coast and he scared to death that this crap is going to hit harder than the media is saying out there.
Memphis has turned into quite the distribution center thanks to FEDex while Chicago has lost it's manufacturing base.
The trucking market right now is chaotic. My son in 3PL says it is crazy as trucking firms walked away from business they underbid on.
Ed
samfp1943Apparently, our Sales Dept personnel, had assumed we owned a fleet of Intermodal ready trailers.... Everything was great, until after a period of time, we started getting trailers back from the railroad....Unfortunately, they were pretty much, unserviceable, due having broken in half, or otherwuise danaged; because the loads were not distributed correctly, and braced within the trailers . I never heard what happened on either end in the aftermath of those broken trailers being returned; except, the 'tale' was that the drayage in Chicago, abnd NOLA killed 'the deal'. My best guess is that 'the rest of the story' ala Paul Harvey, would have really been interesting.
I never heard what happened on either end in the aftermath of those broken trailers being returned; except, the 'tale' was that the drayage in Chicago, abnd NOLA killed 'the deal'. My best guess is that 'the rest of the story' ala Paul Harvey, would have really been interesting.
Improper loading and securement of loads can do in rail cars and trains for that matter as loading issues can cause derailments.
Never too old to have a happy childhood!
Good to see you're still around here greyhounds
greyhounds wrote the following post{in Part}:
"...We had much more freight going south out of Chicago than we had coming north. That's bad. That means we'd have to move empty intermodal equipment back north. We were producing the transportation but not selling it. That be bad. What to do? Well, if you want to increase your demand you reduce your price.
After deregulation we were able to cut those northbound charges. And we did. It's far better to get $300 to move a trailer from Memphis to Chicago with a load than it is to move it empty for $0. Southbound charges stayed higher. We focused on eliminating the empty, non revenue miles.
As I said, I still follow freight rates. (OK, if I'm weird, I'm weird.) I do this through DAT, a service that tracks truck rates nationwide. I read what they'll let me have for free. So today I get their email. It highlighted the Chicago-Memphis market, among others. To my astonishment the northbound truck rate was higher than the southbound rate. $2.06/mile NB vs. $1.93/mile SB. I guess the market demand curve has changed. That's basically, give or take, $1,000 each way. The CN should be able to kick the trucker's butt with that..."
Before I retired [pre-2002] I worked for a 'medium sized' carrier, HQ was Memphis, IIRC it was about 1997(?) The Company entered into an agreement with IC (ICG?) to move our trailers and loads N&S to NOLA and Chicago. Of Course, it was a 'big deal' (!) for thr T/L and Johnston Yard was just opening a 'new' IM facility.... The problem that arose for the T/l was we had trailers that were NOT built to be handled by IM loading eauipment... Strick had, when building the trailers, addded to the rub rail, some 5 quarter hardwood boards, so the IM loading equipment would not damage the lower outer rails, on the trailers....
Apparently, our Sales Dept personnel, had assumed we owned a fleet of Intermodal ready trailers.... Everything was great, until after a period of time, we started getting trailers back from the railroad....Unfortunately, they were pretty much, unserviceable, due having broken in half, or otherwuise danaged; because the loads were not distributed correctly, and braced within the trailers .
greyhoundsAs an aside, I had to price a contract for Montgomery Ward (remember them). They'd buy from manufacturers in Mississippi and bring the stuff in to Chicago for further distribution. (Maybe that's part of the reason they went broke.) I was running out of time. I had to go on duty for two weeks with the Illinois National Guard. So I just Swaged it. We needed northbound business so I offered $600 to Chicago from anywhere in Mississippi. We'd pick up the trucking cost to and from the IM terminals. Then I went off to Ft. McCoy, WI. When I got back I found that a truck line had exactly matched our price and taken the business. Ward's had to have shown our proposal to the trucker. I never trusted them again.
When I got back I found that a truck line had exactly matched our price and taken the business. Ward's had to have shown our proposal to the trucker. I never trusted them again.
When I was TM in Baltimore Terminal at Mt. Clare, the responsibility covered the T&E crews that did the switching at the B&O Wicomoco St. intermodal facility on the Southern edge of downtown Baltimore.
There were numerous customers, however the biggest was Montgomery Wards and their subsidiary Wardex. Their facilities were within about 3 city blocks of the main gate of the ramp. The Wards and Wardex drivers would shuttle trailers into and out of the ramp and probably made 10 or more round trips per working day using 'yard tractors' with the hydraulic 5th wheel to pick up and set down trailers with minimal manual effort beyond coupleing the brake lines and electrical connection.
Seemed that Wards went bust about the same time that Chessie System moved the intermodal facility from Wicomoco Street to Port Covington (the former Western Maryland yard in Baltimore).
So I'm a former rate guy. I worked intermodal market development and pricing for the long gone ICG. We competed with trucks between Chicago and Memphis. That's 500 miles and you best have a sharp pencil.
Anyway, I left the railroad as it collapsed and I'm now retired. But I'm still interested. I follow truck rates.
We had much more freight going south out of Chicago than we had coming north. That's bad. That means we'd have to move empty intermodal equipment back north. We were producing the transportation but not selling it. That be bad. What to do? Well, if you want to increase your demand you reduce your price.
As I said, I still follow freight rates. (OK, if I'm weird, I'm weird.) I do this through DAT, a service that tracks truck rates nationwide. I read what they'll let me have for free. So today I get their email. It highlighted the Chicago-Memphis market, among others. To my astonishment the northbound truck rate was higher than the southbound rate. $2.06/mile NB vs. $1.93/mile SB. I guess the market demand curve has changed. That's basically, give or take, $1,000 each way. The CN should be able to kick the trucker's butt with that.
As an aside, I had to price a contract for Montgomery Ward (remember them). They'd buy from manufacturers in Mississippi and bring the stuff in to Chicago for further distribution. (Maybe that's part of the reason they went broke.) I was running out of time. I had to go on duty for two weeks with the Illinois National Guard. So I just Swaged it. We needed northbound business so I offered $600 to Chicago from anywhere in Mississippi. We'd pick up the trucking cost to and from the IM terminals. Then I went off to Ft. McCoy, WI.
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