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Meat Traffic, was: Re: (erielack) Milk Traffic
- Subject: Meat Traffic, was: Re: (erielack) Milk Traffic
- From: "Paul Brezicki" <doctorpb_@_bellsouth.net>
- Date: Wed, 27 Aug 2008 06:36:58 -0400
There were two main problems with meat traffic: traffic imbalance and high
L&D payouts. The Northeast is a net consuming region, and the almost
exclusively EB meat traffic only added to the imbalance in manufactured
goods. Predominantly WB UPS traffic alleviated the imbalance from the RR's
viewpoint rather than create a new one. UPS had to deal with a trailer
imbalance, which is why much WB parcel traffic was plan II1/2. There
actually was a seasonal meat backhaul from vendors like Omaha Steaks and
Harry&David, but this went in packages with CO2 cooling, eliminating
vulnerability from refrigeration failure.
For a good review of meat traffic L&D, see Bill Gale's article in the
Diamond V15#2. Basically, perishables are vulnerable to the relatively
unsupervised nature of rail freight movement. With trucking, a driver is
supervising the load and monitoring the refrigeration unit at almost all
times. With rail, if a refrig unit failed soon after leaving Chicago, it
might not be noticed until Marion or even Meadville. By then , the load is
spoiled. While the trailer was parked at 51St, truckers would go around
siphoning fuel from the refrig fuel tanks. The fuel would then run out
enroute. Meat hooks would disappear at the receivers on the East coast.
Ultimately, movement of perishables is more service- than cost-sensitive.
The rate increases by EL to allow for the cost of L&D effectively
de-solicited the traffic because the rate difference became only pennies per
pound, and trucking from Midwest packing plants to the East Coast was 24 hr
or more faster than rail.
Paul B
From: "Bradley Butcher" <llyengalyn_@_hotmail.com>
Subject: Re: (erielack) Milk Traffic
True but un fortunate Paul. I recall reading the UPS article which talked
breifly about eastbound meat traffic. Basically as I understand it it was
lucurative, but for some reason became more of a problem then it was worth.
So they intentionally priced themselves out of the market on the meat
business. Now why UPS was good enough to bend over backwards for the money
and the meatpackers were not I don't understand. To me it seem they would go
great hand in hand. Meat ships east in trailers, clean the trailers out and
UPS packages go back west in the same trailers eliminating backhaul
<cha-ching, cha-ching cha-ching>
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