- Joined
- Mar 11, 2009
- Messages
- 41,104
- Reaction score
- 12,202
- Location
- South Carolina
- Gender
- Male
- Political Leaning
- Conservative
I agree that there are some things that are certainly better off trucked in. But lots of product currently trucked could be railed. And even though the product then has to be locally trucked to end destination, the costs would probably even out over just trucking it all.
The real advantage of trucking is inventory control. To make rail cost effective it has to be bulk. Let's say Harley Davidson needs 100,000 handlebars for the year. It would be much cheaper to have them all delivered on one rail shipment. As opposed to say, 1,000 handlebars at a time trucking them in. Storage issues aside, there is a very, very good reason why the more expensive trucking option might be a better choice.
Handle bar #10 on the production line has a major defect. Looking at the problem, NONE of those first 10 handlebars are going to work, and there is no quick fix. If you only have 990 more handlebars all having the same defect in the parts bins, then it's no big deal. Inconvenient, yes. Just order new handlebars and have them trucked in immediately. But if you have 100,000 defective handlebars in the parts warehouse you now have a real, Oh, Sh**, problem !! The answer to this problem was "just in time" inventory, and trucking it in. The other advantage of "just in time" is it's much easier to make product changes on the fly. Customer/dealer feedback says the handlebars need to be 4 inches wider? Just go through the 1,000 you have in stock and order the next batch 4" wider.
Trucking has become so popular with almost all manufacturers because manufacturers don't trust their suppliers, and those suppliers don't trust their suppliers. Nowhere in the supply chain is there much trust. People have been burned too many times. Heads have rolled, business contracts lost......
So you're right; rail will probably never get back some of their business. It is still a much cheaper way to ship. Just has it's disadvantages. Which could be overcome, but I doubt it.
My sister, who several years back used to work for HUB International, which was a multi platform shipping company, using ship, rail, trucking all the way to final delivery, told me about 10 years ago that the model for the future being studied then was more in line with what you envision, but the simple fact is that our economy is so diverse in terms of goods, that it still hasn't come to full fruition....As a trucker, I say good...because one thing that comes along with that sort of thing is that wages for those of us who have made this one of the last decent ways to make a good living, support a family, and retire in a middle class setting would see that disappear....
For instance...I currently work for a contract carrier that works in the supply chain of bread from bakery to warehouse for delivery the next day. The trips are regional (about 600 miles) and I can get three of them in a week making about $70K per year....Now, if that were to somehow be figured out that it could be done by rail (I don't see how) and all we had left is delivery to the stores, our pay would drop by at least $30K per year....No way I could take that kind of hit...
I will agree that certain manufactured items as well as some natural resources like coal can be railed to destination, as companies like JB Hunt, Schneider, etc. are already doing such, which is why you see the piggy backed trailers on flat bed rail cars....A driver can only expect to make realistically, about $45K with these companies as well...
Currently, the transportation industry is experiencing a dramatic shortage of drivers yearly as well, and that could be due to it just not keeping up with what people expect for compensation to stay out on the road a week at a time...
So, it's a complicated issue, and after trying to think about it overnight, it is a really complicated issue for sure, and I'll meet you half way, which I think you've been trying to do as well, and say that some things could be railed, which if the current shortage of drivers continues, will have to be, there are many items that will always need to be shipped by truck...
Which as long as that continues for another 9 years, I can retire and then y'all can do what you want....lol....