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Re: (erielack) LCL Traffic



>I don't think I'd characterize the LTL trucking business as being
> parti8cularly profitable, except in a relative sense (to each other). LTL 
> trucking has
> had a tough row to hoe the last couple of decades, and the roadside is 
> littered
> with their carcasses (abandoned terminals).

First of all, it should be noted that both T.L. and LTL carrier carcasses 
litter the nation; and what's more the lost opportunity costs of independent 
operators are out there in the scrap heap as well. It's much easier to get 
into transportation when one does not have to take responsivbility (let 
alone bear the costs) of right of way/infrastructure.  Railroads could not 
compete, because they (as) did not have access to tax dollars and (b) would 
have refused it if offered.

> failing. Virtually all of these companies were unionized. Virtually all of 
> the
> truckload carriers out there are not.

UPS does okay, is highly competitive and is all-union/Teamster.

> nmt 28% rail intermodal, but most union carriers aren't anywhere near that 
> at
> present. Most of what they do move by rail in in the west,e.g. Chicago- LA 
> where
> it is tough to compete with rail transit time without team drivers, which 
> is
> big bucks.

Every so often we now see TL and LTL shipments routed rail -- but it depends 
more on the logistics scheme of the consignee. A large retailer with 600 
stores and one distribution center may see our shipments from Los 
Angeles/Long Beach go TOFC or even via double-stack train; but the outfits 
with multiple DCs scattered around the country remain almost exclusively 
LTL.

I will also note that some of the larger retailers are now instituting 
Transportation Management Systems that are assembling TL shipments from 
multiple vendor/shippers which will provide opportuities for railroads if 
they're ready to accept more business.  Stage, Kohls and JC Penney are among 
the leaders in this area.

I'm not sure companies like Penney (a one time E-L customer at Ridgefield 
NJ, now near the NYS&W at North Bergen for those who want to keep this even 
vaguely on topic) will be ready to reinstall sidings but . . . <g>

Cheers,
Jim 



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