Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Brown Cafe UPS Forum
UPS Discussions
Fast Lane Ground
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="beentheredonethat" data-source="post: 82454" data-attributes="member: 4886"><p><strong>Re: Cost of over the road (OTR) versus, trailer on flat car (TOFC)</strong></p><p></p><p></p><p> </p><p> </p><p>There's a couple pieces of the equation not listed in your analysis, which makes it not a cheap alternative. It sounds like you are comparing moving a set of pups from LA to Atl and another set from Atl to LA. Which is 4 trailers but only 2 tractors are involved. Since you only gave enough fuel for 2 total tractors in the equation. Next the rails charge a different price for a 28' trailer then a 45' trailer. (almost double). Reread your analysis you showed the miles for one trip and the associated costs. You doubled it but somehow there are now 4 trailers moved. That would only be valid if the rails charge the same price for a pup as a long, but they charge more for a long (a lot more). For the rail cost you quadrupled the cost. Also, in many cases we need sleeper teams to get there for some of the enhanced lanes. For the sleeper teams, we need to pay 2 people not just one. Also, your analysis exlcudes all the outlays of captial to buy additional tractors. Also think of how many additional miles being driven will drive up the need for more mechanics to keep the tractors runing. There's tolls to consider, there's also highway mileage tax (yes UPS pays each state money for all the miles driven in their state). There's a lot of additional costs involved. UPS did this to try to match and in some areas beat the competition. One of the reasons FDX had the advantage is that they used non union drivers to carry the loads which costs significantly less then what we have to pay.</p></blockquote><p></p>
[QUOTE="beentheredonethat, post: 82454, member: 4886"] [b]Re: Cost of over the road (OTR) versus, trailer on flat car (TOFC)[/b] There's a couple pieces of the equation not listed in your analysis, which makes it not a cheap alternative. It sounds like you are comparing moving a set of pups from LA to Atl and another set from Atl to LA. Which is 4 trailers but only 2 tractors are involved. Since you only gave enough fuel for 2 total tractors in the equation. Next the rails charge a different price for a 28' trailer then a 45' trailer. (almost double). Reread your analysis you showed the miles for one trip and the associated costs. You doubled it but somehow there are now 4 trailers moved. That would only be valid if the rails charge the same price for a pup as a long, but they charge more for a long (a lot more). For the rail cost you quadrupled the cost. Also, in many cases we need sleeper teams to get there for some of the enhanced lanes. For the sleeper teams, we need to pay 2 people not just one. Also, your analysis exlcudes all the outlays of captial to buy additional tractors. Also think of how many additional miles being driven will drive up the need for more mechanics to keep the tractors runing. There's tolls to consider, there's also highway mileage tax (yes UPS pays each state money for all the miles driven in their state). There's a lot of additional costs involved. UPS did this to try to match and in some areas beat the competition. One of the reasons FDX had the advantage is that they used non union drivers to carry the loads which costs significantly less then what we have to pay. [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
Brown Cafe UPS Forum
UPS Discussions
Fast Lane Ground
Top