Is UPS quitting the railroads?

Discussion in 'UPS Discussions' started by barnyard, Apr 8, 2014.

  1. barnyard

    barnyard KTM rider Staff Member

    The FNN is reporting that 70 feeder jobs are being filled in my state so that UPS can pull all loads off the railroads in my area. Boggles my mind to think that the BNSF has killed that cash cow. 15ish years ago, UPS was Santa Fe's largest customer, in terms of money spent. UPS was very close to BNSF largest customer.
     
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  2. No way ups saves way to much money putting trailers on the rail.
     
  3. barnyard

    barnyard KTM rider Staff Member

    Not now. Any volume we get from either coast is at least a day late and it is because of train delays. Monday's are our heaviest days now, because the RR has 2 days to get late loads into town.
     
  4. oldngray

    oldngray nowhere special

    Maybe just use rail for coast to coast instead of areas in between.
     
  5. Jones

    Jones fILE A GRIEVE! Staff Member

    Haven't heard anything about that around here, this would be big news for sure.
     
  6. TUT

    TUT Well-Known Member

    But those are the routes that your competition is beating you in transit times.
     
  7. cino321

    cino321 Active Member

    I can see it being unreliable. The government has neglected railroad infrastructure for decades. It's slow, old, and extremely limited.

    Good for the feeder drivers, bad for the people who work for BNSF.
     
  8. MrFedEx

    MrFedEx Engorged Member

    Bingo. There is no economically viable alternative to rail. Trucking is far more expensive, and rail can be just as fast, if not faster than a team trucking operation. You'll never see UPS move away from rail.
     
  9. TUT

    TUT Well-Known Member

    UPS and Fedex's transit times show that from A to B rail isn't faster. Is this how UPS makes up for Union Driver Wages? Using cheaper back-end methods?

    Sort of funny you say "There is no economically viable alternative to rail" your company is Airline and Trucks and the Ground segment is all trucks. They have viable businesses. Myth Busted.
     
  10. QKRSTKR

    QKRSTKR Active Member

    I thought 104 feeder said fedex was beating us in transit time because of the rail. It was taking us a day longer.
     
  11. Jones

    Jones fILE A GRIEVE! Staff Member

    I see plenty of fedex trailers at the railyard.
     
  12. barnyard

    barnyard KTM rider Staff Member

    Railroads are privately owned businesses. The government has nothing to do with railroad infrastructure investment.

    Best sticking to what you know, railroads are not one of them.
     
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  13. TUT

    TUT Well-Known Member

    I doubt it's many at all in the grand-scheme. I'll ping for a number. I wasn't aware of anything moving rail of note.
     
  14. Jones

    Jones fILE A GRIEVE! Staff Member

    It's a lot.
     
  15. barnyard

    barnyard KTM rider Staff Member

    It is a pretty well known industry fact that FE beats UPS transit times because they run teams vs UPS using trains. UPS has tried to get the RRs to run coast to coast trains, but the railroads found them too difficult to run on time, so gave up on them.
     
  16. barnyard

    barnyard KTM rider Staff Member

    I see quite a few also.

    Anything shipped where the transit time includes a weekend, both carriers use trains.
     
  17. barnyard

    barnyard KTM rider Staff Member

    It has already happened in many markets. UPS runs teams between many markets to speed transit times over rail.
     
  18. cino321

    cino321 Active Member

    Never said the railroads weren't owned privately.

    If the government did invest in the railroads like they invest in other private projects that benefit the general public it would potentially become a extremely efficient transportation network for cargo and people.
     
  19. oldngray

    oldngray nowhere special

    rofl. It would make money like it did with Amtrak?
     
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  20. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    The railroads are riding the Bakken shale oil boom and UPS is on the outside looking in.


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