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The Competition
FedEx Discussions
Buyout !!??
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<blockquote data-quote="MrFedEx" data-source="post: 330334" data-attributes="member: 12508"><p>I read the article in <em>TRAINS</em> magazine too...very interesting. UPS has been playing-off UP and BNSF against each other for so long that the railroads are starting to wise-up and stop undercutting each other just to get the business. Why do it if it isn't profitable? You also mentioned the capacity issue, and putting other lower-priority trains into sidings to wait for UPS hotshots screws-up the traffic flow. Perhaps UPS would be willing to pay higher rates to avoid more trucking, which is almost always more costly than rail.</p></blockquote><p></p>
[QUOTE="MrFedEx, post: 330334, member: 12508"] I read the article in [I]TRAINS[/I] magazine too...very interesting. UPS has been playing-off UP and BNSF against each other for so long that the railroads are starting to wise-up and stop undercutting each other just to get the business. Why do it if it isn't profitable? You also mentioned the capacity issue, and putting other lower-priority trains into sidings to wait for UPS hotshots screws-up the traffic flow. Perhaps UPS would be willing to pay higher rates to avoid more trucking, which is almost always more costly than rail. [/QUOTE]
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