Western Railroad Discussion > New UP/CSX Domestic Container Program - UMAX

Just posted today,

CSX Intermodal and Union Pacific Railroad Announce UMAX Domestic Interline Container Program Providing Truck-Competitive Services

Customers Have Access to More Than 20,000 Containers and More than 600 Service Lanes Maximize Market Reach

Omaha, Neb. and Jacksonville, Fla., February 24, 2010 – UMAX, a new domestic interline container program created by CSX Intermodal and Union Pacific Railroad, will provide customers access to more than 20,000 containers and expanded market reach across North America. UMAX will feature more than 600 service lanes supported by faster and more frequent train schedules. UMAX launches March 29, 2010.

"UMAX will offer extensive market access and expanded capacity across a nationwide intermodal network," said John Kaiser, Union Pacific vice president and general manager - Intermodal. "Union Pacific and CSX Intermodal are committed to delivering market-competitive service and value to our customers, providing truck-competitive schedules that maximize the benefits and efficiencies of rail intermodal."

"In a word, UMAX offers customers more," said James Hertwig, CSX Intermodal president. "We will jointly offer more containers and more lanes to more customers with more competitive schedules than ever."

Other key UMAX customer benefits include:
• Truck-competitive service in key lanes.
• Expanded network access to markets across North America.
• Access to more than 20,000 53-foot containers.
• Ramp-to-ramp and door-to-door service.
• Easy, Web-based container reservations and billing through REZ-1.
• A simple one-container, one freight bill transportation solution.

UMAX will offer rail-provided 53-foot containers to intermodal marketing companies, motor carriers, freight brokers, truckload, parcel and less-than-truckload customers. UMAX will replace the separate programs CSX Intermodal and Union Pacific offer customers today for CSXI-UP interline service.

For additional information, go to the CSX Intermodal or Union Pacific Intermodal Web sites.

http://www.uprr.com/newsinfo/releases/service/2010/0224_umax.shtml

I seem to recall someone predicting this a while back....

http://www.trainorders.com/discussion/read.php?1,2088378,2088478#msg-2088478

Can you say "market pricing power"? UP will raise intermodal rates on April, 1, no fooling.

I'd be curious to see just how much of an increase this will have, especially if rates are being increased.

So why did UP/CSX shut down STAX a few years ago then?

LCW Wrote:
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> So why did UP/CSX shut down STAX a few years ago
> then?


They were buying new equipment for STAX, this new deal will be just using the existing equipment that is remarked for UMAX.

gmojim

As has been stated before, UP will control the domestic container market while BNSF already controls the domestic trailer market. At least I know where both company's stand on domestic intermodal.

Aaron

gmojim Wrote:
-------------------------------------------------------
> LCW Wrote:
> --------------------------------------------------
> -----
> > So why did UP/CSX shut down STAX a few years
> ago
> > then?
>
>
> They were buying new equipment for STAX, this new
> deal will be just using the existing equipment
> that is remarked for UMAX.
>
> gmojim

Let me see if I can still follow the circular logic.. UP and CSXT formed STAX, which was all new containers. After a couple years the venture was disbanded and the once new STAX containers were distributed between CSX and UP (Hub Group) and relabeled accordingly. A few years later UP and CSX announce UMAX using existing equipment.. Does any one else thing much of this equipment will be former STAX equipment? Again, why did they disband Stax?

LCW Wrote:
-------------------------------------------------------
> gmojim Wrote:
> --------------------------------------------------
> -----
> > LCW Wrote:
> >
> --------------------------------------------------
>
> > -----
> > > So why did UP/CSX shut down STAX a few years
> > ago
> > > then?
> >
> >
> > They were buying new equipment for STAX, this
> new
> > deal will be just using the existing equipment
> > that is remarked for UMAX.
> >
> > gmojim
>
> Let me see if I can still follow the circular
> logic.. UP and CSXT formed STAX, which was all new
> containers. After a couple years the venture was
> disbanded and the once new STAX containers were
> distributed between CSX and UP (Hub Group) and
> relabeled accordingly. A few years later UP and
> CSX announce UMAX using existing equipment.. Does
> any one else thing much of this equipment will be
> former STAX equipment? Again, why did they disband
> Stax?

Here is another post I made;
A futher update on the UMAX thread posted below;
The new pool UMAX containers will be old CSXU and PACU containers that are remarked as UMXU containers. UP will use the old Pacer PACU for this new joint CSX pool. This UMAX pool will be very similar to the UP-NS joint EMP pool that has operated for years.
This would explain the UP purchase of the old Pacer Stacktrain equipment.

Not really new traffic with this new pool, just an easier way of doing business for customers that will not have to use interline UP - CSX service as in the past.

UP is buying and maintaining new business by supplying equipment to customers. BNSF goes in the opposite direction and supplies no equipment to intermodal customers.

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UP and CSX decided to stop the STAX program , maybe as CSXU's already operated on UP in those days. Not sure, it did not work for everybody involved.
Today, UP has much better service than when Stax was terminated.
The old Stax equipment went to CSX and other companies bought some, do not believe UP took any Stax and no Stax equipment went to Hub Group. Hub Group got EMP pool equipment. UP will use Pacer equipment for the new UMAX pool.

gmojim

gmojim Wrote:

> UP and CSX decided to stop the STAX program ,
> maybe as CSXU's already operated on UP in those
> days. Not sure, it did not work for everybody
> involved.
> Today, UP has much better service than when Stax
> was terminated.
> The old Stax equipment went to CSX and other
> companies bought some, do not believe UP took any
> Stax and no Stax equipment went to Hub Group. Hub
> Group got EMP pool equipment. UP will use Pacer
> equipment for the new UMAX pool.
>
> gmojim

STAX was some VP's pet project. It was doomed from the start. Kind of like the current CSXU program to Texas. CSXU's ran everwhere they did at much lower rates. Check out the UPHU containers, those decals are a lot bigger than the HUB logo, big enough to cover up the STAX logo.

I forgot, did UP have white STAX containers? All I remember is the red, yellow STAX boxes.

gmojim

Umax is getting new 53 foot boxes .See my picture of several of them arriving from Asia(How can we not build simple steel boxes here?)
Andy

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