As many of you probably know, I’m a big advocate of railroads increasing their participation in the movement of temperature-controlled foodstuffs in North America. It’s huge long-distance market that is now truck dominated. Much of the diversion of this business from rail to truck was the result of grievously misguided government economic regulation.
For example, the interstate truck movement of fresh fruits and vegetables was never subject to economic regulation. Rail rates were strictly regulated. It’s not surprising that the trucks took the business. Killed chicken, now the #1 consumed animal protein, was originally regulated. But the US Supreme Court ruled it deregulated, for truck movement only, in 1956. The court reasoned that chicken was an agricultural commodity and if ag commodities moved by truck were not subject to economic regulation then chicken was certainly included. The railroads were still regulated and largely kissed their chicken business goodbye.
The railroads now have a lot of freedom from economic regulation (It never made economic sense.) but they must claw their way back into the market. They are doing so, but it’s a slow process. They’ve lost their expertise and infrastructure for moving this freight. Developing the knowledge and experience required is what is taking the time.
So, the question is: What equipment is best suited for this freight? I see three possibilities: 1) double stack refrigerated containers, 2) TOFC trailers and 3) refrigerated boxcars. Each option has its advantages and disadvantages.
I think RailEx was working fine. The screw up was UP buying it and then getting way from the original premise. As soon as they had it, cost containment instead of providing service became the focus.
The original separate Z train service, your unit train, was RailEx’s idea. Once UP got hold of it, they first started combining the California and Washington sections when possible. Then filling out with nonperishable foodstuffs. Finally, putting reefer blocks into intermodal trains. Usually the K stack trains seemed to be the ones with reefer blocks.
Now with PSR, intermodals are either Z or I. And the I can be filled out with any manifest traffic that needs to move.
So, the question is: What equipment is best suited for this freight? I see three possibilities: 1) double stack refrigerated containers, 2) TOFC trailers and 3) refrigerated boxcars. Each option has its advantages and disadvantages.
For rail movement, from intermodal terminal to intermodal terminal, double stack cannot be beat. It’s fantastically efficient and low cost. It does free up track space in intermodal terminals, something that is critical. But… It does incur a weight penalty on the highway portion of the intermodal move. A container/chassis combination will weigh more than a trailer. Highway weights are limited. You can get some of the weight back by using a light-weight day cab tractor. But you’re still going to lose some payload. This loss must be compensated for by reducing the terminal-to-terminal rail charge.
The TOFC trailer. Obsolete right? Not just yet. TOFC trailers will eliminate any meaningful payload loss. They’re also a lower investment risk since they can be used in over the road service if intermodal doesn’t work out. Their disadvantages are: a) increased train weight, b) increased train lengt
Regarding the UP-CSX moves which previously went by unit train, coincidentially just last night I discussed these moves with a former CSX engineer who handled the westbound movements several times and his recollection was the westbounds moves were nearly 100% empties. He recalled one move had 3 loads, but for the most part - empties.
How much would that play into UP dropping the service? Long empty move.
I think you could experience the same issues with TOFC. But, anything to make the chicken moves to Popeyes any easier or cheaper is fine with me. That is excellent chicken. Had a four piece recently (3 meals). Still have a little left.
When they ran the salad shooters, it was at RailEx’s behest. It was after UP acquired RailEx that it started carrying other nonperishable foodstuffs and eventually the reefer traffic disappeared into intermodal trains. I would guess the cost of the empty moves back would’ve been built into the rate RailEx paid.
There’s still a lot of reefers moving east to various points. I imagine most return empty has well. The difference is they now move in the manifest network. RailEx may have been willing to pay to ensure a steady supply of cars. UP, not so much especially during the prePSR program to cut the operating ratio called G-55+0.
I remember seeing once that one of the westbound salad shooters showed a load. I looked it up out of curiosity. Frozen fish. I wouldn’t say all the westbound loads were that, but I did see that a time or two when they showed having a load.
Agree on the customers choosing the best box for their movement. Maybe reefers can take back some more market share with this securment system below…
Here’s a presentation, and video below for Watco services in moving perishables from the PNW
The tools exist for a healthy efficient perishable market on rails. Perhaps it’s time to let shortlines become the 3PL’s for the nations carload network. The C1’s can handle the line haul they covet so much.
Just so we’re all on the same page, load securement systems in boxcars have been common for decades. I’m sure they’ve got a way to hold the racks and pallets in place.
Except railroads seem to want to minimize the amount of intermodal terminals. UP and BNSF have closed all of their central and northern California intermodal terminals except 2 and 1 respectively. I have been told UP’s Oakland terminal handles international container exclusively.
They want to eliminate low margin traffic. Shortline companies which do well with local traffic. Might just provide a way for low margin IM traffic to return to the rails. Just two examples for instance. WATCO and GW could build a network of small IM ramps in partnership with somebody like Centerpoint. Such partnerships can lead to better volume growth than the C1’s can provide at the moment.
Sounds like a good idea on paper but the interchange issue doesn’t get addressed. Unless the shortline can get restricted trackage rights to an IM hub, the cars are being interchanged at a point located halfway to nowhere which can kill the transit time.
Plus it isn’t like air freighters haven’t already solved the problem. Their routine operation has acceleration and deceleration far in excess of the normal operating envelope of a train, combined with steeper operational angles. When all of the cargo boxes slide to the back of the plane, it doesn’t damage the cargo: you lose the aircraft and crew.
Those loading system videos are great. I remember seeing a video on the Chelsea produce center in Massachusetts. The trucks were being easily and quickly unloaded by forklifts utilizing pallets. The railcars were stuffed floor to ceiling with boxes containing potatoes. They had to be loaded and unloaded by hand box by box. No wonder the rails can’t compete.