Ryder Plans to Divert More Shipments to Rail

[OntarioVanMan]

Ryder Looks to Rails for Capacity | Journal of Commerce

We;ve all seen them going up all over the country...Intermodal sites....in the middle of corn fields...there is no denying it will impact trucking....interesting the time difference in shipping has been cut dramatically in the last few years...

Those shippers are reacting to tight capacity and higher rates. “Overall costs are definitely up this year,” said Podvin. “Truckload line-haul rates are up a fair amount,” he said. “We’ve done a good job mitigating increases for our customers.”

In moving freight to rail, Ryder must balance lower pricing with longer transit times, said Podvin. Typically the shift adds one to two days to a shipment. “If we can live with that extra time, and save some money, that’s obviously our end goal.”

 

[Jefferson3000]

Rail will work for the "ultra economy" freight. There is definitely a shortfall in capacity right now, and probably will not pick up as quickly as freight does. They need to move it somehow, so it's the railways that will get the overflow.

 

[greg334]

I think as manufacturers are getting smarter, they are returning back to using services that are reliable.

Rail has been used in the manufacturing world just until 40 or so years ago and it can be a very good coordinated means of transport with the JIT system in mind.

 

[OntarioVanMan]

I think rail has recognized that they were a dinosaur...slow, inefficient ....now with only a day or 2 difference in delivery times...they are closing the gap....and cheaper then a truck...

 

[greg334]

What?

You thinking that this is 1875 and they are using carrier pigeons to move the paper around from station to station to know where a package is?

Since the late '70s, rail has used technology to be a bit more efficient than trucking, we have finally caught up with them in the last 10 years and now everyone is crying about how rates became depressed and they are taking more freight and moving it on rail.

There is a lot more to it than rail just being a part of a solution with overflow, a lot more. They seem to be working with companies to move more freight on time than any trucking company. Take a good look at what CSX is doing in integrating services with some of the auto suppliers.

 

[OntarioVanMan]

What?

You thinking that this is 1875 and they are using carrier pigeons to move the paper around from station to station to know where a package is?

Since the late '70s, rail has used technology to be a bit more efficient than trucking, we have finally caught up with them in the last 10 years and now everyone is crying about how rates became depressed and they are taking more freight and moving it on rail.

There is a lot more to it than rail just being a part of a solution with overflow, a lot more. They seem to be working with companies to move more freight on time than any trucking company. Take a good look at what CSX is doing in integrating services with some of the auto suppliers.

My comment was more generic then specific....

Yep...I keep up on the rail improvements and the CSX
upgrading ...

I've pointed rail out here before and it keeps getting discounted as if who cares....I thinks that will bite some in the butt sooner then later...especially IF FMSCA cuts yet another hour of drive time off...

 

[OntarioVanMan]

and then there is Swift...

Truckload giant adds container-on-flatcar service to trailer, trucking options

Swift Transportation, the largest U.S. truckload carrier, is expanding its container business with a cross-border intermodal service linking the U.S. and Mexico.

The container-on-flatcar service will complement Swift’s existing trailer-on-flatcar service across the Mexican border, the Phoenix-based trucking company said. Shippers shifted freight from all-truck modes to intermodal at the fastest pace in years during the second quarter, according to a survey by Wolfe Trahan research group.

Swift launched its COFC service through a partnership with Kansas City Southern Railroad and its Mexican subsidiary, Kansas City Southern de Mexico Railroad.

"The expansion of the COFC product to and from Mexico completes our COFC geographic footprint,” said Richard Stocking, president of Swift Transportation.

Swift has a fleet of 5,700 intermodal containers, including 4,300 53-foot containers. The company has nearly 17,000 tractors and more than 49,000 trailers. The carrier also owns a Mexican trucking company, TransMex.

Although intermodal makes up a small portion of the $2.9 billion company’s total business, the Phoenix-based carrier has expanded its container fleet 35 percent from a year ago.

The truckload giant launched its intermodal service in 2005, and has agreements with all the major U.S. railroads, the company said in its 2010 annual report.

More freight and higher rates gave Swift Transportation a $19.6 million net profit in the second quarter, as operating revenue rose 15.5 percent to $850.5 million.