This is correct, not all intermodal traffic is time-sensitive, in fact apparently, most of it isn't. But the important thing is that most of the truck market is time-sensitive, and the rail share of domestic merchandise traffic continues to be small. Speaking of UPS, this carrier recently de-emphasized rail movement in numerous eastern markets in the interest of shaving a day off transit times, no doubt in response to competition from RPS and others who don't use rail. Even if your freight isn't time-sensitive, speedy handling is usually the least expensive when looking at the big picture because it improves equipment utilization. This is especially important for freight cars, since they are durable assets that tend to become technologically obsolete long before they physically wear out. Poor utilization is one reason the RR's continue to have trouble attracting investment in the capital markets. Paul B From: "Tom Beckett" <tabeckett_@_stny.rr.com> Subject: Re: (erielack) Marion Intermodal Terminal The thing to keep in mind is that not all intermodal traffic is time sensitive. Often, it goes via rail in lanes that would not seem to make sense because the price is usually much better than OTR transport, and the shipper doesn't need the stuff in the box quickly. Under these circumstances, lower speed/lower price makes sense. When I drove for JB Hunt, I once tried to pry loose from dispatch a Memphis-Scranton load that was to go by rail(IC to Chicago, CR to Harrisburg, then by road). They wouldn't let me have it. The reason was that they had priced it so low they would lose money on it if it went by road. Moving it by rail was profitable, and doing so fit the customer's requirements. This is probably one of the odder rail moves, but I encoutered this sort of thing fairly frequently. It ain't all UPS streaking to the coast!! The Erie Lackawanna Mailing List Sponsored by the ELH&TS http://www.elhts.org ------------------------------
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