SP5103 Wrote:
-------------------------------------------------------
> > Maybe they could use reefers from an outside
> > company like CryoTrans?
>
>
> Which creates its own potential set of issues. You
> are still dependent upon UP to provide a decent
> rate and timely service. Another consideration is
> if you plan on shipping year round, or just
> seasonally - in most cases it doesn't make any
> sense to lease a car you can only need a few
> months out of the year.
>
> Remember during the last building boom when
> centerbeams were in short supply for lumber
> loading? UP told customers to lease their own cars
> if they wanted a steady car supply. So many did.
> Then the recession/depression hit, with the whole
> mortgage scam was a contributing factor. UP was
> stuck having to store centerbeams (having to pay
> for outside storage in some cases), so they
> started surcharging anyone using non-UP supplied
> cars. Now the economy has improved, many of the
> private car leases have expired, and UP has all
> their cars out of storage and with congestion
> issues customers are again having car supply
> issues. In the meanwhile, the leasing companies
> are stuck either paying to store or scrap 20+ year
> old centerbeams that no one on the UP can afford
> to lease.
>
> I believe most of the smaller ex PFE reefers are
> getting close to or hitting their 50 year AAR
> limit, so don't be surprised if reefers end up in
> short supply as the older cars are scrapped. It
> doesn't matter if they've actually hit the 40/50
> year limit, the railroad or owner is unlikely to
> make any substantial investment in a car that only
> has a few years of life left.
>
> Years ago, I used to hear that the rule of thumb
> was that common carrier rail was only economical
> compared to truck for hauls over 100 miles. The
> last figure I heard was something like 250 miles
> up to 500 miles for intermodal. Remember that
> there really aren't that many shipper and receiver
> pairings that wish to deal with 100 tons of any
> product, especially considering the railroads lack
> of ability to consistently deliver, tending to
> bunch cars up instead of a steady supply. Today's
> trucks have about the same capacity of
> yesteryear's iced reefer or rail car of the era,
> and today's railcars can carry 3-4 truckloads
> each. For most customers, especially perishables,
> the economics and logistics of modern rail vs
> truck favor truck, intermodal or
> ColdConnect/Railex instead of them trying to ship
> carloads themselves.
>
> The biggest issue - most potential customers have
> no clue how to ship rail anymore, and the big
> railroads don't have the marketing and support
> system in place nor are they really interested in
> any customer not shipping less than a few hundred
> rail cars annually.
>
> My opinion.

Vary well stated!

Sammie