Western Railroad Discussion > Not the way to run a railroad

UPS: Class Is are missing the mark when it comes to on-time delivery
(Source: Progressive Railroading, September 9, 2019)

The head of transportation for United Parcel Service (UPS) can sum up Class Is’ service performance for much of this year in one word: underwhelming. Although they got off to a good start in 2019’s first three weeks, the large railroads didn’t meet stringent on-time performance and availability requirements in the first half, says UPS Vice President of Corporate Transportation Ken Buenker. The world’s biggest parcel delivery company, UPS is one of the largest users of intermodal rail services in North America. For each Class I, the company assigns a minimal acceptable result (MAR) of 95 percent reliability for on-time deliveries or outbound departures. But Class Is many times didn’t meet the MAR in the year’s first two quarters, says Buenker.

Posted from Android

Why am I not surprised?

TAW

Gee, haven't a bunch of us uninformed "bench racer" fans been saying this was going to happen for
some time now? That old adage of not seeing the forest for the trees sometimes holds true. It's not
your stockholders who are generating the profits but rather those annoying shippers who want value
for THEIR money!

Out

And how many of these "misses" were due to line closures and reroutes from the flooding in the mid-west this year?
You can Precision Schedule all you want but just remember that Mother Nature has a say in the matter too!

i would like to know of how many delays from "non-clearing" trains plugging up terminals contributed to ups train delays..........

66

And I'm sure UPS it'self isn't blameless!!!

They'll go back to rubber tiring them
 

UPS has alternate options with diesel fuel relatively cheap right now. When diesel fuel prices rise, it may find the steel rail is the only way out of town...

Lackawanna484 Wrote:
-------------------------------------------------------
> UPS has alternate options with diesel fuel
> relatively cheap right now. When diesel fuel
> prices rise, it may find the steel rail is the
> only way out of town...

Fuel might be cheap but do they have drivers?

UPS drivers have regular routes, schedules and days off at home.

Does it get any better than that?

PHall Wrote:
-------------------------------------------------------
> Lackawanna484 Wrote:
> --------------------------------------------------
> -----
> > UPS has alternate options with diesel fuel
> > relatively cheap right now. When diesel fuel
> > prices rise, it may find the steel rail is the
> > only way out of town...
>
> Fuel might be cheap but do they have drivers?

Good point. Fuel may not be cheap forever, as well.

Amazon has been offering various incentives for accepting short delays in Prime delivery. Dollar credit here, two dollars there.  I'm wondering if that's a consequence of unreliable delivery channels?

PHall Wrote:
-------------------------------------------------------
> And how many of these "misses" were due to line
> closures and reroutes from the flooding in the
> mid-west this year?
> You can Precision Schedule all you want but just
> remember that Mother Nature has a say in the
> matter too!

I'd say a good portion on the UP was weather-related and it would have happened whether they had PSR or not. 

memphisfreight Wrote:
-------------------------------------------------------
> PHall Wrote:
> --------------------------------------------------
> -----
> > And how many of these "misses" were due to line
> > closures and reroutes from the flooding in the
> > mid-west this year?
> > You can Precision Schedule all you want but
> just
> > remember that Mother Nature has a say in the
> > matter too!
>
> I'd say a good portion on the UP was
> weather-related and it would have happened whether
> they had PSR or not. 

Weather related lateness (like flooding) is usually one of those "excuseable" factors when it comes to on time performance.

This year, I've been seeing many a "Z" UPS train getting delayed due to so called PSR and just plain old cost cutting measures (like job cuts where the road crews are now doing the work unassisted, often with long delays to the trains, crew availability issues (ie because they furloughed so many), etc.

"underwhelming", but it's precision.

PSR doesn't seem to be part of the problem per the article. At least not in they eyes of UPS. . .

PSR — which now is embraced by each Class I except BNSF — could benefit service-improvement efforts as the railroads learn to manage the operational strategy with efficacy, [UPS's] Buenker believes. Fewer cars on line would help the Class Is boost velocity.



Edited 1 time(s). Last edit at 09/11/19 15:44 by portlander.

Yah get those profitable box cars out  of the way and expedite our low profit go fast traffic!

Out

I do not know what other carriers have done or not done in related to the issue but BNSF still has a fuel surcharge applied to their shippers and to add injury to insult, this is on top of position 6 and 7 throttle restrictions still in effect for many trains. Cannot have it both ways. Charging a client extra on fuel but we are still going to handle your cargo as it is nothing important. Many of the Q and lower Z trains have been running double digit hours late on the southern mainline w/the trhottle restriction active. Not way to run a railroad.
The index volume on intermodal has fallen below 100 and the cost to ship via rail is no more than a five percent difference than rail. The trucking frms have the equipment to handle the volume, they just need drivers and this has become an issue. Here in KS, w/the past Brownback education cuts, certified truck driver training schooling is not being taught @ vo tech and one junior college that used to teach the course. Hopefully this can be reversed and soon as the market to haul by highway is the most attractive it has ever been.The railroads brought this upon themselves. Should not be this way, but this is the cruel jacked stupid transportation world we live in.

I wonder if the BNSF fuel surcharges are the result of busted hedges?

Big time fuel users will often contract for fuel a year to 18 months out. If spot fuel costs drop, you still pay the higher contracted cost.

Posted from Android