I've heard that intermodal is the least profitable.
How much does UP charge to take a grain train half way across the country?
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Wow Kaizen, this sounds like Treadstone. I wonder if there were any dark agents in my yard!
they'll be getting less profitable because UP is bleeding customers. Industries starting to do everything by LTL and TL now. Not worth saving a few pennies when you've got to deal with Uncle Pe–s
Kaizen Chief thanks for the detailed reply, any more info would be great, it's a fascinating topic.
Perhaps, this may help, it varies on the car and the train make up the car is placed in. For example an Intermodal train can charge 1700.00 per car if the train arrives on time with no delays. If not, then the price spirals down to about 735.00 per car because of the delays and fines for being delayed. Plastics, can charge from 900.00 per day and 350.00 per day if held in storage. Coal, grain, crude, ie commodity trains can charge up to 2900.00 per car, and you will notice this are the only trains that move on time and never stop. Union Pacific is attempting to be a fedex in carrying high priority freight they just want to move the freight and contract out the switching. KCS, has been profitable in contracting out the switching work to focus on the freight, BNSF is picking up all the lost UP switches and underbidding Union Pacific to get the bidding because they will move trains. Notice, an increase in BNSF sidings, and length of the sidings, also notice its always Union Pacific sitting in the siding siding watching BNSF, and Amtrac run. Union Pacific rails will not be able to hold long trains and in sidings. In 2014 to 2016 there were 1000 selected TEY that were a part of the improvement team that reported delays, and reported how Union Pacific could run trains faster ad efficient. If you are a road crew you will have noticed that these employees were all over the board, meaning one day going north, then east, then south, then they flipped back into the yard. They were testing the process and working to ease congestion ad faster routes. Union Pacific is also currently laying an additional 6,000 miles of tract to ease congestion. You will also notice that these employees were terminated on a level 5. When this project was up Union Pacific would transfer in mgrs from other states literally 10 states away and that manager would terminate this employee under a level 5, however this employee was paid his salary of 88,000 per year plus when they terminated him/her they were paid $95,000.00 and signed a confidential agreement. Union Pacific knows what they are doing.
Ten years ago most railroads we're investing heavily in interomdal yards . To serve and Profit in infrastructural upgrade . BC
So I would really like for an executive to comment on this but. In my understanding . The big carriers have pushed away small purchercers of rail transit by varis means. Sure charges,holding charges. Ect in leu of large hauls with pre defigned charges. Not servicing all needs of all buisnesses. Large and small a– intended by there original Government charters. Just my opinion BC
Twenty years ago, we were told every car makes a $1000 a day, have no clue if there is any truth to that, but it would be interesting to know what the real numbers are.