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Meat Traffic, was: Re: (erielack) Milk Traffic



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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