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Class One Rails blame shippers, receivers and truckers

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Posted by zugmann on Friday, August 20, 2021 8:04 PM

Some forget the railroads used to be about customer service.  I'm not saying they need to be a charity - but I wonder how much money they leave on the table by their bull-headed stubborness? 

It's been fun.  But it isn't much fun anymore.   Signing off for now. 


  

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Posted by BaltACD on Friday, August 20, 2021 8:01 PM

Convicted One
 
BaltACD
That is the problem you are too warm and cozy to handle your part of the supply chain.  

Perhaps I was not blunt enough. To have a service provider fail in the performance of their  contracted service to me, and blame it upon the ineptness of their other customers....is weak, and not something I would imagine most customers would endure without rethinking the relationship. And your  further attempt to brand me as a generic customer being part of that problem, is no more than feeble guilt peddling.  

Call me instead "Generic Customer seeking competent alternate solution provider"...

Take your stuff when it is offered to you.  If you don't you are the problem that needs to find a alternate solution to be able to get your stuff OFF MY LAWN in a timely fashion.  I cannot fix your failings.  When you get charged for YOUR failings - pay the bill.  Anything else and you are trying to steal services without paying.

You sound like Swift or some of the other bottom feeding 'customers'.

Never too old to have a happy childhood!

              

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Posted by Convicted One on Friday, August 20, 2021 7:30 PM

BaltACD
That is the problem you are too warm and cozy to handle your part of the supply chain. 

 

Perhaps I was not blunt enough. To have a service provider fail in the performance of their  contracted service to me, and blame it upon the ineptness of their other customers....is weak, and not something I would imagine most customers would endure without rethinking the relationship. And your  further attempt to brand me as a generic customer being part of that problem, is no more than feeble guilt peddling. 

 

Call me instead "Generic Customer seeking competent alternate solution provider"...

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Posted by BaltACD on Friday, August 20, 2021 4:43 PM

Convicted One
 
BaltACD
You are the generic customer.  

Awe shucks, and all this time I thought Uncle Pete's insistence of "We  can handle it" was sincere...Smile, Wink & Grin  Made me feel all cozy, and stuff.

That is the problem you are too warm and cozy to handle your part of the supply chain.  Remember the Ever Given is now going South through the Suez Canal - remember when it stopped the canal for 6 days.

Never too old to have a happy childhood!

              

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Posted by Convicted One on Friday, August 20, 2021 3:30 PM

BaltACD
You are the generic customer. 

 

Awe shucks, and all this time I thought Uncle Pete's insistence of "We  can handle it" was sincere...Smile, Wink & Grin  Made me feel all cozy, and stuff.

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Posted by BaltACD on Friday, August 20, 2021 12:48 PM

Convicted One
 
BaltACD
When you as a 'customer' are not upholding YOUR end of the transportation contract YOU become the problem, not the carriers.  It is your obligation to get the boxes consigned to you off the carriers property - it is not the carriers obligation to find more space to store your boxes until you can handle them. 

"Me" as a customer?  Who said anything about my being unable to receive my due? If you read my earlier post, it was about OTHER customers clogging up the rail distribution chain. I just want my (hypothetical) boxes. Railroads don't come blaming me for the problems of others.

Again, we go to a logistics expert seeking solutions, not excuses,.... because if I end up having to solve the problem myself, then the direction I go might end up being to my permanent liking.

You are the generic customer.  Some customers actually accept their freight upon presentation - many more do not.  I see any number of complaints by truckers being held out from delivering their trailers upon arrival - to the detriment of the drivers Hours of Service time and the revenue that lost working time occasions.

Railroads are involved in TRANSPORTATION, not storage. Customers are trying to use railroad facilities for their own storage and then they cry about the demurrage/storage/accessory charges their actions create.

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Posted by Convicted One on Friday, August 20, 2021 10:37 AM

Shadow the Cats owner
The problem is they have forgotten how to solve the problems and instead they create larger problems to try and fix the small ones.  You know close down yards that could possibly provide some overflow capacity to relieve the stress on the major ones. 

I suspect that is a big part  of it. The railroads have grown too fond of the taste of "low hanging fruit" and so are disinclined to adapt during exceptional circumstances.

"Hey, we've spent the last 20 years bullying and arm twisting to get things set up  just the way we  want them,.. why should we give that up now?"

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Posted by Convicted One on Friday, August 20, 2021 10:28 AM

BaltACD
When you as a 'customer' are not upholding YOUR end of the transportation contract YOU become the problem, not the carriers.  It is your obligation to get the boxes consigned to you off the carriers property - it is not the carriers obligation to find more space to store your boxes until you can handle them.

"Me" as a customer?  Who said anything about my being unable to receive my due? If you read my earlier post, it was about OTHER customers clogging up the rail distribution chain. I just want my (hypothetical) boxes. Railroads don't come blaming me for the problems of others.

 

Again, we go to a logistics expert seeking solutions, not excuses,.... because if I end up having to solve the problem myself, then the direction I go might end up being to my permanent liking.

 

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Posted by Shadow the Cats owner on Thursday, August 19, 2021 6:06 PM

The problem is they have forgotten how to solve the problems and instead they create larger problems to try and fix the small ones.  You know close down yards that could possibly provide some overflow capacity to relieve the stress on the major ones.  Or thinking running a 16k foot train is better than 3 5k foot ones even though there's not a single siding long enough for that monster on their single track mainline and they have another monster just like it coming the other direction.  The best one is screaming that we can't get the containers out of the yards fast enough.  Well if your freaking check in procedures didn't take 1 hour per freaking truck to do maybe more stuff could get moved.  It takes on average 1 hour to check in or out after picking up or dropping off a container to a railroad intermodal yard.  Then most yards your lucky to have more than 2 inbound and 2 outbound lanes open.  If you're wanting this cargo moved how about getting the trucks that provide the last mile service in and out of the freaking bottlenecks.  

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Posted by diningcar on Thursday, August 19, 2021 1:35 PM

See my reply above regarding LCL service.

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Posted by BaltACD on Thursday, August 19, 2021 12:28 PM

Convicted One
I still stand behind my earlier assertion,  If there is a logistics problem, then you (UP or BNSF) are the logistics experts, so solve it. Don't come wimpering to me, expecting a comfortable shoulder to cry on.  Find a solution!!

When you as a 'customer' are not upholding YOUR end of the transportation contract YOU become the problem, not the carriers.  It is your obligation to get the boxes consigned to you off the carriers property - it is not the carriers obligation to find more space to store your boxes until you can handle them.

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Posted by Convicted One on Thursday, August 19, 2021 10:11 AM

I still stand behind my earlier assertion,  If there is a logistics problem, then you (UP or BNSF) are the logistics experts, so solve it. Don't come wimpering to me, expecting a comfortable shoulder to cry on.  Find a solution!!

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Posted by Convicted One on Thursday, August 19, 2021 10:05 AM

I think you both may have missed the intended sarcasm of my comment. 

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Posted by SD60MAC9500 on Thursday, August 19, 2021 9:21 AM
 

Convicted One

 

 
BaltACD
We as consumers, are ordering too much product from off shore locations that just exacerbates the situation.

 

 

Hey, maybe if we could just spend more taxpayer money raising bridges, and deepening harbors to accomodate bigger ships, we'll all live happily ever after?  Mischief

 

This has and is already happening.

 
Rahhhhhhhhh!!!!
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Posted by BaltACD on Thursday, August 19, 2021 9:16 AM

Convicted One
 
BaltACD
We as consumers, are ordering too much product from off shore locations that just exacerbates the situation. 

Hey, maybe if we could just spend more taxpayer money raising bridges, and deepening harbors to accomodate bigger ships, we'll all live happily ever after?  Mischief

Bigger ships just get product to port - they don't get the product to the end user.

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Posted by Convicted One on Thursday, August 19, 2021 8:58 AM

BaltACD
We as consumers, are ordering too much product from off shore locations that just exacerbates the situation.

 

Hey, maybe if we could just spend more taxpayer money raising bridges, and deepening harbors to accomodate bigger ships, we'll all live happily ever after?  Mischief

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Posted by rdamon on Thursday, August 19, 2021 7:14 AM

Shadow the Cats owner

The pipeline problem had zero to due with the trucking industry.  

But it did impact transportation and probably worsened the situation.  The chip shortage (now it has expanded to other components like fans and power supplies) may have helped problem by keeping unfinished products on the dock.  Still all of this shows how fragile the whole system is. 

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Posted by Gramp on Wednesday, August 18, 2021 11:43 PM

Shadow the Cats owner

The pipeline problem had zero to due with the trucking industry.  When that pipeline was hijacked literally and shutdown there wasn't enough fuel to freaking go around in that area.  My driver's were also affected but we had them fuel up outside the affected areas with full tanks and buying minimal amounts 50 gallons at a time to get back outside that area.  Most of the time they got out with just 1 or 2 at the most stops for fuel.  No one has raised however that the biggest shortage right now is semiconductors of all types.  Why when the pandemic hit China it literally shutdown 60 percent of the world's producers of chips.  

 

From what I've read and heard, it's a combination of zooming demand for the latest high end chips for consumer electronics and the tanking of demand for older generation chips during the lockdow. Autos for instance use the older chips, and productive capacity turned to new chips when automakers stopped ordering. Now they want the chips. Few to be had. 

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Posted by Shadow the Cats owner on Wednesday, August 18, 2021 9:56 PM

The pipeline problem had zero to due with the trucking industry.  When that pipeline was hijacked literally and shutdown there wasn't enough fuel to freaking go around in that area.  My driver's were also affected but we had them fuel up outside the affected areas with full tanks and buying minimal amounts 50 gallons at a time to get back outside that area.  Most of the time they got out with just 1 or 2 at the most stops for fuel.  No one has raised however that the biggest shortage right now is semiconductors of all types.  Why when the pandemic hit China it literally shutdown 60 percent of the world's producers of chips.  

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Posted by rdamon on Wednesday, August 18, 2021 7:19 PM

Don't forget our "Just in time" manufacturing. The accountants were happy, but everything was built on quick shipments.  We have failures from A-Z

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Posted by BaltACD on Wednesday, August 18, 2021 5:59 PM

Convicted One
The point being Balt, someone selling solutions needs to be reliable. That's what they do,...And you'd normally expect a major player such as UP or BNSF to be the most competent one in the room.

As Shadow mentions, I'll bet this is a great time to be backhauling from California.

It is the assumption that every player in the supply chain is reliable - the reality is that in this day and age - THEY ARE NOT.  Ocean Shipping is not.  Railroad Shipping is not, Truck shipping is not - hell, the issue with the Colonial Pipeline system goes to prove they are not either.  We as consumers, are ordering too much product from off shore locations that just exacerbates the situation.  Throw on top of that, over the past year or more there has been a political effort to destroy the Post Office as a reliable carrier.

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Posted by Convicted One on Wednesday, August 18, 2021 5:00 PM

The point being Balt, someone selling solutions needs to be reliable. That's what they do,...And you'd normally expect a major player such as UP or BNSF to be the most competent one in the room.

As Shadow mentions, I'll bet this is a great time to be backhauling from California.

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Posted by BaltACD on Wednesday, August 18, 2021 4:36 PM

Convicted One
I think that most customers of contract services,  expect the contractor to be a source of solutions, not excuses.

If I'm waiting on two dozen boxes from the west coast, and Union Pacific responds that they are holding back containers because some of their other customers have been "naughty" and not picked up the boxes they have already brought inland...why are they making that my problem? Let them lease adequate space to store the derelict customer's boxes, and provide the service I've contracted for....

All this "blame covid", "can't find good help",  "People are too busy collecting enhanced unemployment benefits and don't want to work" sounds like a sad song indeed. But nonetheless are just cop outs.   You're the solution providers, Transcon railroads, so find one and deploy it!   Atlas shrugged, perhaps?

And when they give you all 12 of your boxes at one time and you only have the ability to handle one a day - thats the railroads problem too????

There are no clean hands in this ClusterF....

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Posted by Convicted One on Wednesday, August 18, 2021 3:52 PM

I think that most customers of contract services,  expect the contractor to be a source of solutions, not excuses.

If I'm waiting on two dozen boxes from the west coast, and Union Pacific responds that they are holding back containers because some of their other customers have been "naughty" and not picked up the boxes they have already brought inland...why are they making that my problem? Let them lease adequate space to store the derelict customer's boxes, and provide the service I've contracted for....

All this "blame covid", "can't find good help",  "People are too busy collecting enhanced unemployment benefits and don't want to work" sounds like a sad song indeed. But nonetheless are just cop outs.   You're the solution providers, Transcon railroads, so find one and deploy it!   Atlas shrugged, perhaps?

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Posted by zugmann on Wednesday, August 18, 2021 3:07 PM

greyhounds
The freight rail system isn’t perfect, and it has some problems from the COVID pandemic, but trying to fix it with massive government involvement is a fools errand.  

While COVID sure didn't help (but gives a great excuse that keeps giving!), many of these problems were starting before that.  Almost like all the railroads decided to adopt a certain operating philosophy that called for reductions in staffing, yards, and equipment.  Nah, must be a coincidence.  

It's been fun.  But it isn't much fun anymore.   Signing off for now. 


  

The opinions expressed here represent my own and not those of my employer, any other railroad, company, or person.t fun any

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Posted by MP173 on Wednesday, August 18, 2021 1:48 PM

As of yesterday the number of ships off of Long Beach awaiting berth was 66...one less than the all time high of 67 earlier this year.

Meanwhile on the east coast, container ships are beginning to pile up outside NY, Savanah, and other locations.  It is a mess everywhere and it will take quite awhile (IMHO) for this to clear out.

When I hear Fortune 50 suppliers tell me it will be at least into 1Q22, that speaks volumes.

Strap it in, buy your holiday gifts early, or better yet scale back and be thankful for what you have.

Ed

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Posted by Shadow the Cats owner on Tuesday, August 17, 2021 10:09 PM

We're already seeing it in the spot market in the OTR rates coming out of California.  Dry van carriers that normally struggle to find reloads are now getting rates that make it easier to get out of California.  I'm seeing spot rates in the 2.50 to 3 dollar a mile range right now.  Why stores are trying to get their holiday merchandise into their warehouses and they need the shipping.  Right now it's a perfect freaking storm in the logistics industry.  Not enough capacity on the railroads and barely enough surplus in the OTR side.  I've heard that JB and Schneider are both starting to divert stuff from the intermodal network to try and ease the problem.  Going to be an interesting next few months.  

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Posted by SD60MAC9500 on Tuesday, August 17, 2021 7:30 PM
 

A quick update. 53' box capacity has essentially dried up on the West Coast. Some inland point intermodal (IPI where ocean boxes travel from port to a recievers door) lanes has been put on suspension. The ocean carriers are now telling benefical cargo owners (BCO those who take control of freight once it lands at a port. Few examples Target, Home Depot, etc..) to transload into 53' dry vans.. That's not good as rates will increase substantially from reduced capacity in the dry van market.

 
 
 
 
 
 
 
Rahhhhhhhhh!!!!
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Posted by Overmod on Tuesday, August 17, 2021 3:33 PM

greyhounds
Overmod is looking to establish a centrally planed, government controlled freight rail transportation system.  I have no idea why he thinks such an effort will work well “This Time” when it’s never worked well in the past.

I have no idea why anyone would think that was what I said; in fact I bent over backward to avoid any semblance of, or excuse for, any kind of bureaucracy.  Did you not bother to read what I actually said?

Why he thinks a bunch of government bureaucrats can design a national freight rail transportation system better than the one we have now remains a mystery.  We do have the safest, most efficient rail freight system in the world.

But, to paraphrase the first law of consulting, the 'safest' and 'most efficient' rail freight system does not imply that the system is necessarily either safe or efficient.  We have complaints weekly about all the different points where... well, where it could be improved.  We've had a number of proposals from greyhounds alone on how it could be made better -- at least some of them systematically applicable.  It could certainly bear NOT being 'left alone' to the current folks tinkering with it.  But we certainly agree that government meddling of the types affecting railroads since the earliest manipulation of common-carrier franchises is not a likely way to go; let me be clear that specifically includes any type of ICC regulation or national rate setting attempts.

Overmod’s proposal would also effectively remove costs from the railroads' control.

I am not sure from which corporeal region you pulled this laugher; what I proposed was not cost-related but time and schedule related.  The idea was that shippers be responsible on known and equal terms for accessing intermodal arrivals 'timely', co-ordinated with the railroads' supposed PSR, as part of their contractual terms, with understood levels of consequence if for any reason they cannot or do not.  This imposes the promise of less, not more 'cost to the railroads'; the discussion up to now has been dithering about the railroad intermodal facilities not being configured for either efficient or easy storage -- hence developing a framework in which shippers would in fact pay the additional costs railroads actually incur if they fail to 'optimize' the intermodal transfer as necessary.

The 'reciprocal' concern is to address the (now pretty well demonstrated) tendency of some railroads to fail to deliver according to their precision scheduling.  Is greyhounds arguing that railroads shouldn't be held to their end of contractual intermodal handover provisions?

The point about using nothing but commercial law to settle 'disputes' is precisely to keep some damn bureaucracy or other from asserting authority over ensuring 'compliance'.  Remember I said that the legislation involved principles, not defining statutory offenses that Federal machinery would enforce?  That only goes so far as to set standards to be used in contracts -- with any breach then handled as for UCC contract disputes... comparatively little leeway for shystering, and not one cent for Government tribute.

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Posted by charlie hebdo on Tuesday, August 17, 2021 3:05 PM

Balt: Good to see that someone from the rail end is not wearing rose-colored (ideological) glasses and not refusing to acknowledge that this is a massive mess and rails are not immune to criticism. 

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