Most of you know I’m “passionate” about the rail intermodal market opportunity for hauling temperature controlled products (food). This stuff moves in large volumes for long distances. (California/Washington to points east of the Mississippi for example.) The predominant mode of transport is truck. I’m convinced that the diversion of this traffic from rail to truck was the result of past stupid misguided federal economic regulation of rail rates. (The interstate truck rates were, for the most part, never regulated.)
Since the economic rate regulation is now gone, the railroads can get a good chunk of this business back. The long haul volumes are basically huge.
I’ve made a couple posts about Rail Logistics acquring some reefer containers to start hauling Washington produce to Chicago. (They’re supposed to start tomorrow.) Now it looks as if a “Big Kahuna” is comming to the party.
(left click on the photo tag to view the picture.)
Hunt is the 2nd largest truckload carrier in the US. Over the past years they have shifted from being strictly an over the road trucker to being primarily focused on itnermodal. In the past they’ve only moved dry freight in their containers. I don’t know how many reefer containers they’re acquiring. But I don’t think they’ll do this in a small way.
This could be another “revolution” in rail intermodal. Everybody eats every day. Food production is very concentrated by commodity and the food is shipped long distances in high volumes to population centers. It now goes largely by truck. If JB
I experienced a little problem going into the Yahoo Intermodal Group website-They want you to join inorder to view…Maybe another time.
So from JB Hunt’s Web site here is some info on their reefer (and dry) intermodal ops. Once in off link you can look around as you wish: http://www.jbhunt.com/intermodal/index.html
From their Refrigerated Solutions section:
“…J.B. Hunt utilizes thousands of refrigerated providers, complemented by over 500 company-owned refrigerated trailers to provide comprehensive solutions for any refrigerated need. With both truckload (TL) and less than truckload (LTL) refrigerated solutions, J.B. Hunt will work to maximize every refrigerated transportation dollar spent. Our refrigerated specialists will work with to understand your supply chain from beginning to end and help with solutions that meet your specific needs…”
While researching the above thread I found the following links to be possibly relevant here as well:
Interesting. I hope you’re right, Greyhounds. This is something that’s LONG, long overdue and it’s a great opportunity for the Class I’s to capitalize (maybe even some regionals as well). Still hope to see someone utilize the Rail Mate and Railrunner technologies.
JB Hunt will make this work. We’re doing this for a major retailer for now and will be expanding from there. (The common work at the water cooler)
We all know it’s a fit for the industry. You know that, if any company can, JBHT can pull it off. I’m pumped.
The containers are slick too. Inside, you sacrifice only two pallets to make up for the Reefer unit. With them being stackable, it’s going to be a thing of beauty.
Good read here fellas. You’re on the ball for sure.
Most of you know I’m “passionate” about the rail intermodal market opportunity for hauling temperature controlled products (food). This stuff moves in large volumes for long distances. (California/Washington to points east of the Mississippi for example.) The predominant mode of transport is truck. I’m convinced that the diversion of this traffic from rail to truck was the result of past stupid misguided federal economic regulation of rail rates. (The interstate truck rates were, for the most part, never regulated.)
Since the economic rate regulation is now gone, the railroads can get a good chunk of this business back. The long haul volumes are basically huge.
I’ve made a couple posts about Rail Logistics acquring some reefer containers to start hauling Washington produce to Chicago. (They’re supposed to start tomorrow.) Now it looks as if a “Big Kahuna” is comming to the party.
(left click on the photo tag to view the picture.)
Hunt is the 2nd largest truckload carrier in the US. Over the past years they have shifted from being strictly an over the road trucker to being primarily focused on itnermodal. In the past they’ve only moved dry freight in their containers. I don’t know how many reefer containers they’re acquiring. But I don’t think they’ll do this in a small way.
This could be another “revolution” in rail intermodal. Everybody eats every day. Food production is very concentrated by commodity and the food is shipped long distances in high volumes to population centers. It now goes largely by truck. If JB Hunt makes this work, and I wouldn’t
Your statement is absolutely false. Rates for unprocessed agricultural products were not regulated. It was known as the agricultural exemption and I am 99% sure it went all the way back to when motor carrier rates and services were first regulated in 1935.
Apples, pears and potatoes, the largest tonnage products of the Wenatchee and Yakima Valleys and the Columbia Basin of Eastern Washington are unprocessed ag. products, so Greyhounds’ statement is correct
Effectively this exemption meant that the interstate truck rates on produce (and livestock) were never regulated. The truck rates moved with the market while rail rates were held fixed and constant by regulation. It doesn’t take a genius to figure out that this would significantly disadvantage the rail carriers in their competition with motor carriers.
California produces about half the fresh fruits and vegetables in the US. (It also exports a significant amount of the produce to Canada.) Washington state also grows a lot o
Basially, a motor carrier, “Frozen Food Express”, had to go to the US Supreme Court in order to be allowed to haul dead chickens.
They didn’t have a Federal “Certificate” to haul the dead chickens so other competing motor carriers tried to stop them from hauling the birds. FFE argued that the chickens were an ag commodity and therefore exempt from economic regulation. The Supreme Court agreed.
One would hope they had more important things to decide, but I guess not. I’m convinced economic regulation of transport greatly harmed our country and obviously wasted the Supreme Court’s time.
Before we throw you into the ‘briar patch’[:-,] - [#welcome]
There are a few of us whose work experience was or currently is in the trucking industry, so it’s nice to have someone else of similar interest–All of use are interested in the Railroads, and a few of us, their interation with trucking as a side interest.
It is nice to see JB’s operations branching out, into a new direction. The new refrigerated containers look very nice. I hope that it works out, it is an untapped area for a major trucking operator. From the one photo of the rear of the unit with a door open; I notices only what appeared to be a three or four foot section of Z-track load security system on the rear sidewall. I would have thougth its use would have been a liittle more generous in the unit. I’m not a real fan of the compression bar security system in trailers to really secure loads ( personal preference)
My big concern is dovetailing refrigerated product handling into the skill set of driver’s w ho are primarily used to the dry freight side of how things are done. Most dry freight operators ( on the irregular route side of the business) are in the midrange of company size (5,000
Greyhounds I hate to tell you this BUT JBHT will FAIL in this venture for one reason. Their Drivers are NOT USED TO PULLING REEFERS. Pulling a reefer trailer is a different animal. Put it to you this ay it is like going from owning a Goldfish (Dry Van) and thinking you can keep a Coral Reef System alive (Reefer Trailers). My last Carrier I drove for if you had NO REEFER EXPERIANCE when you hired in you SPENT ONE MONTH WITH A TRAINER to get to know all the IN’S AND OUTS of reefer Freight. See what is the temp of one thing WILL NOT WORK FOR ANOTHER. Also different things react differantly to how they are handled. Smash Strawberries and you end up with MUSH same with Apricots Rasberries and Blueberries. Yet Celery you can beat that to death. So you see there is a fine line on how you treat it.
You could be right Ed. This whole thing could be a bust. KLLM tried it before and couldn’t/didn’t make it work.
I know about the different temps (Chiquita Bananas go at 58 degrees.)
I don’t think the problem will be the drivers. Hunt can just hire carriers/drivers/supervisors/OO’s that have temp controlled experience. I think the container is the wrong vehicle for the job. After working on this for over a year I came to the conclusion, hotly disputed by my partner, that the right rail vehicle was a RoadRailer/RailMate trailer.
I apologise for not understanding that you were referring to AG products exclusively. From what I have heard and read about in the past, there were plenty of stupid regulations in the past, and again, I have worked for two different private carriers, not in the common carrier side of the industry, so I haven’t had to deal with these issues personally the way the common carriers have/had to.
Edbenton, I do understand what you are talking about in the refrigerated segment of the industry. The first 14 years of my driving career were with a food-service company that supplied Arby’s, Arctic Circle, Burger King, Burgerville USA, and Wendy’s. If you think straight trailer loads are a challenge, think of the headaches of a three compartment/temperature system, with as many as 14 deliveries on a single load. I DON’T Miss that at all.
Since late Sept, 2002, I have been driving for a manufacturing company, that our plant in Portland produces Foam products, and distributes other mainly mattress and furniture components, from our other plants around the country to customers in our delivery region. I don’t think that I have ever been over 55,000 gross, on 5 axles, weekends and holidays OFF, hourly pay w/OT and meals and motels paid on overnight runs, I plan sticking around until retirement.
Greyhounds, I agree with you here about the RailMate concept and how that should be the preferred vehicle. I have to admit that I’m very disappointed that someone (so far, anyway) hasn’t had the gumption to give this technology a chance to have its mettle tested. Also, don’t know the story behind it but supposedly the person who was “pushing” RailMate was canned f
"… My big concern is dovetailing refrigerated product handling into the skill set of driver’s w ho are primarily used to the dry freight side of how things are done…
…I know training within the driver pool will be a Corporate challenge, truck drivers sometimes can be pretty resistant to change their ideas of how things shoud be done…"
[quote user=“greyhounds”]
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You could be right Ed. This whole thing could be a bust. KLLM tried it before and couldn’t/didn’t make it work.
I know about the different temps (Chiquita Bananas go at 58 degrees.)
I don’t think the problem will be the drivers. Hunt can just hire carriers/drivers/supervisors/OO’s that have temp controlled experience. I think the container is the wrong vehicle for the job. After working on this for over a year I came to the conclusion, hotly disputed by my partner, that the right rail vehicle was a RoadRailer/RailMate trailer.
If you only knew how many reefer units JBHT owned you’d withdraw that comment. What you fail to realize is, JB Hunt, has many dedicated refrigerated accounts. You really have no clue. I’m not trying to be snarky but, please research the business before you attempt to decide it’s fate.
I think I’ll spare you any specifics out of spite. Let’s set our calendars to revisit this in six months, then a year and see what you think. My money says we’re going to create yet another huge success and you’ll eat your words.
Just watch. 2010 won’t be anything huge in this area. Come 2011, I really hope you remember this thread and your words.
But…I’ll give you this. You’re correct in your assessment about drivers and the difference in hauling freight to reefer. Above posters are also correct about it coming down to corporate training, recruiting and more.
But we have all that in place and have had for years. We’ll only need small tweaks here and there.
No JB HUNT LOST all their REEFER ACCOUNTS in the LAST 2 YEARS to WERNER and CRETE. Both of which have Dedicated REEFER DIVISIONS. I know all about hauling multiple temp loads try having fresh meat and Frozen on separated with a Bulkhead only. MAN THAT LOAD SUCKED. Maverick is Starting a Reefer Divison HOWEVER they did it the RIGHT WAY Bought out a REEFER CARRIER and are using all the office people to train the DRIVERS and such how to pull reefer. I had a EX JB Hunt Driver that Thought -20 was a GREAT TEMP FOR LETTUCE. Another thought that 50 was perfect for ICE CREAM. Heck even the Training companies for reefers are not much better. Had an Ex England Driver that should of had a CLUE that thought 45 Potato temp was fine for Apples. I pulled my hair out. See it is not just the Trucking Company there is a RR involved here also they need to check the loads also. They do not and your SCREWED. Why do you think most of the Produce and almost all the MEAT moves via TRUCK.
"J.B. Hunt utilizes thousands of refrigerated providers, complemented by over 500 company-owned refrigerated trailers to provide comprehensive solutions for any refrigerated need. With both truckload (TL) and less than truckload (LTL) refrigerated solutions . . . "
I’ll be back later, after I’ve digested the news and websites some more.