QUOTE: Originally posted by Hugh Jampton Transportation doesn't add value, and anything that doesn't add value costs too much, even if it's cheap.
QUOTE: Originally posted by Hugh Jampton Nope,, the product is worth no more when it's loaded onto the transport mode than when it's unloaded,, hence no value is added. No such thing as indirect added value.
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QUOTE: Originally posted by futuremodal when was the last time anyone heard of a non-captive shipper complaining about rail rates?[;)]
QUOTE: Originally posted by cornmaze QUOTE: Originally posted by futuremodal when was the last time anyone heard of a non-captive shipper complaining about rail rates?[;)] Futuremodal, The first post in this thread states that the high cost of rail transportation was the subject of a debate that took place in the year 1963. Regulation was the order of the day in 1963. Think that over before you type up another programmed response.
QUOTE: "Transportation costs too much" was a complaint of rail shippers in the 1960's; it was a complaint of rail shippers 100 years ago; and It is a complaint of rail shippers today.
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QUOTE: Originally posted by edblysard So we have established that rail shippers complain. Got anything that's new? Ed
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QUOTE: Originally posted by MichaelSol QUOTE: Originally posted by cornmaze QUOTE: Originally posted by futuremodal when was the last time anyone heard of a non-captive shipper complaining about rail rates?[;)] Futuremodal, The first post in this thread states that the high cost of rail transportation was the subject of a debate that took place in the year 1963. Regulation was the order of the day in 1963. Think that over before you type up another programmed response. Well, actually reading the first post, the first post actually says this: QUOTE: "Transportation costs too much" was a complaint of rail shippers in the 1960's; it was a complaint of rail shippers 100 years ago; and It is a complaint of rail shippers today. Best regards, Michael Sol
QUOTE: Originally posted by cornmaze OK. I will wait for an explanation from futuremodal, then, how all complaints about rail rates in the last 100 years came from a "captive shippers." That was what he asserted in his last sentence that ended with the smiley face.
QUOTE: The relevent issue is the comparative costs of transportation, competitive vs noncompetitive. This is the issue that raises the hackles of rail shippers. Captive Shipper A sees Noncaptive Shipper B getting a lower rate, even though Shipper A is closer to market. Like most folks, there is an inherent belief that transportation costs more the longer the distance traveled, and this is based on the logical observation that longer distances require more fuel, time, ect. So why does the longer higher cost corridor result in lower rates than the shorter lower cost corridor? The only conclusion one could draw from this is that the lack of intramodal competition results in higher rates. That's where the complaints focus, not on a general gripe about transportation. BTW, when was the last time anyone heard of a non-captive shipper complaining about rail rates?
QUOTE: Originally posted by MichaelSol How on earth did you conclude that?
QUOTE: Originally posted by rrandb I must diagree. A products only value is what it can be sold for. Sitting at the plant or in its warehouse it has no value at all. It only has value when it can be delivered to a paying customer. The operative word is delivered. Transportation only cost "too much" when it drives the price above what people are willing to pay. Sitting at the plant no product has any value . Without some one who is willing to buy it and ship it then it is just excess inventory. Other companies sell their products FOB (freight on board). This is the price to pick it up at their dock. The cost of shipping is on top of the cost of the product however you want it shipped. They will arrange shipping for an additional fee. [2c] As always ENJOY.
QUOTE: Originally posted by cornmaze QUOTE: Originally posted by MichaelSol How on earth did you conclude that? Futuremodal asked rhetorically: "when was the last time anyone heard of a non-captive shipper complaining about rail rates?". His statement suggests that, historically, only "captive shippers" have ever complained about rail rates. Yet, the first post contains documentation of serious debate that took place about rail rates in 1963 -- when regulation prevented railroads from exploiting monopoly positions with regards pricing.
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