Rail is used in the US. We just don’t have as much rail infustructure so they can only get so far. If the port/factory/wearhouse aren’t connect by rail then they’ll have to use trucks for at least part of the transit.
I used to be the shipping/receiving guy in a warehouse, it fell to me to arrange all of our freight pickups, which was annoying because I didn’t really have direct access to any information about pricing, deadlines, etc. so I was constantly going back to the office to show someone quotes to see whether the rates and transit times were acceptable.
Most of our freight was LTL stuff (less than truckload, a couple pallets, not enough to fill a truck by itself) but a few times every month or two we’d get full truckload sized orders.
When it came to them, often “intermodal” shipping had much better rates. Intermodal meaning at least 2 different forms of transportation were going to be used. Truck, train, boat, cargo plane, etc.
As a US-based company with mostly US-based customers, that usually meant rail for us.
However, almost none of our shipments went intermodal because it was too slow for our customers.
It wasn’t usually a drastic difference, we’re talking maybe 1-3 extra days in most cases. Over the Road (OTR) there weren’t many places in the US that we couldn’t get freight to from our location in 5 days or less, and those 5 day locations were mostly real middle-of-nowhere customers on the other side of the country.
It always blew my mind that we didn’t or couldn’t push our customers to just place orders 2 or 3 days earlier to save some pretty significant money on shipping.
I don’t claim to know much about the industry, i was just some kid who needed a job and ended up the shipping guy because I knew how to use a computer and spoke English. But we a textile company that made things like work clothes (chef coats, scrubs, industrial work wear, etc) and restaurant table linens, and we sold mostly to bigger wholesalers, business service companies, etc. who would resell it or provide it to their customers as part some sort of contracted laundry service or something, so not really something I’d think of as being particularly time-sensitive or wildly unpredictable that they couldn’t anticipate their bigger orders a couple days ahead of time
Guess it probably says something about how much we all love instant gratification.
Inventory became evil decades ago. “Just In Time” logistics became the norm instead of having warehoused inventory on hand. The beancounters all decided inventory was money that was sitting around not doing anything and maintaining the warehouse space cost more too. Can’t have those costs on the balance sheet. So speed in receiving smaller shipments more often is now the norm, along with ordering when you need them instead of ordering ahead of time, because some beancounter isn’t gonna be happy about extra inventory.
The beancounters are right about the costs. What they’re not right about is the risks. JIT supply chains are much more fragile, and to achieve some degree of resiliency, even sophisticated manufacturers will often mantain stockpiles of some critical goods. And things get even more funky when there’s only one good supplier for something, or the cost of switching suppliers is high.
Honestly, in that case it’s not even an inventory thing, just plan on ordering a couple days earlier and go for the longer slower shipping method so it ends up arriving on the same day. You don’t have to warehouse it any longer than if you ordered it later with faster shipping, and you save a decent chunk of cash.
You’re looking at a different issue. I’m referring to passenger trains vs freight trains and you’re talking about freight trains vs semi trucks. I’m saying that the rail we do have, we overwhelmingly use for freight. It’s the primary reason we still have trains today in the US.
In regards to percentage of freight shipped by rail vs other means, I believe you that semis take a ton of that.
Yes, but “we will avoid trains no matter what” is blatantly false. It’s terrible, but it is our main method of shipping freight from ports to inland cities.
Americans will do anything to avoid just using trains.
While I don’t necessarily disagree with you, trains are used here all the time specifically for long haul stuff.
Rail is used in the US. We just don’t have as much rail infustructure so they can only get so far. If the port/factory/wearhouse aren’t connect by rail then they’ll have to use trucks for at least part of the transit.
I used to be the shipping/receiving guy in a warehouse, it fell to me to arrange all of our freight pickups, which was annoying because I didn’t really have direct access to any information about pricing, deadlines, etc. so I was constantly going back to the office to show someone quotes to see whether the rates and transit times were acceptable.
Most of our freight was LTL stuff (less than truckload, a couple pallets, not enough to fill a truck by itself) but a few times every month or two we’d get full truckload sized orders.
When it came to them, often “intermodal” shipping had much better rates. Intermodal meaning at least 2 different forms of transportation were going to be used. Truck, train, boat, cargo plane, etc.
As a US-based company with mostly US-based customers, that usually meant rail for us.
However, almost none of our shipments went intermodal because it was too slow for our customers.
It wasn’t usually a drastic difference, we’re talking maybe 1-3 extra days in most cases. Over the Road (OTR) there weren’t many places in the US that we couldn’t get freight to from our location in 5 days or less, and those 5 day locations were mostly real middle-of-nowhere customers on the other side of the country.
It always blew my mind that we didn’t or couldn’t push our customers to just place orders 2 or 3 days earlier to save some pretty significant money on shipping.
I don’t claim to know much about the industry, i was just some kid who needed a job and ended up the shipping guy because I knew how to use a computer and spoke English. But we a textile company that made things like work clothes (chef coats, scrubs, industrial work wear, etc) and restaurant table linens, and we sold mostly to bigger wholesalers, business service companies, etc. who would resell it or provide it to their customers as part some sort of contracted laundry service or something, so not really something I’d think of as being particularly time-sensitive or wildly unpredictable that they couldn’t anticipate their bigger orders a couple days ahead of time
Guess it probably says something about how much we all love instant gratification.
Inventory became evil decades ago. “Just In Time” logistics became the norm instead of having warehoused inventory on hand. The beancounters all decided inventory was money that was sitting around not doing anything and maintaining the warehouse space cost more too. Can’t have those costs on the balance sheet. So speed in receiving smaller shipments more often is now the norm, along with ordering when you need them instead of ordering ahead of time, because some beancounter isn’t gonna be happy about extra inventory.
as these tariffs start kicking in, companies are really going to regret not having local inventory.
The beancounters are right about the costs. What they’re not right about is the risks. JIT supply chains are much more fragile, and to achieve some degree of resiliency, even sophisticated manufacturers will often mantain stockpiles of some critical goods. And things get even more funky when there’s only one good supplier for something, or the cost of switching suppliers is high.
It’s always the fucking accountants.
Honestly, in that case it’s not even an inventory thing, just plan on ordering a couple days earlier and go for the longer slower shipping method so it ends up arriving on the same day. You don’t have to warehouse it any longer than if you ordered it later with faster shipping, and you save a decent chunk of cash.
Except that nearly all US rail is for freight. We hate PASSENGER trains. We freaking love freight rail.
Except that’s rail only carries 16% of freight by weight and 2% of freight by value.
Pretty sure USA hates freight rail too.
https://www.energy.gov/eere/vehicles/fact-846-november-10-2014-trucks-move-70-all-freight-weight-and-74-freight-value
You’re looking at a different issue. I’m referring to passenger trains vs freight trains and you’re talking about freight trains vs semi trucks. I’m saying that the rail we do have, we overwhelmingly use for freight. It’s the primary reason we still have trains today in the US.
In regards to percentage of freight shipped by rail vs other means, I believe you that semis take a ton of that.
But american freight trains are laughably bad too
https://youtu.be/AJ2keSJzYyY
Yes, but “we will avoid trains no matter what” is blatantly false. It’s terrible, but it is our main method of shipping freight from ports to inland cities.
And semi rigs (which are the topic of this post) are…personal transport?
No, the subject is shipping cargo. Try to keep up.
You were the one that brought passengers into the conversation.
Yeah… Saying we don’t use them as much as… Freight. Try to keep up?
Trains help poor people too. We like to pretend we don’t have poor people. Makes them easier to ignore while pretending to be Christian.
Not much competition in railways. Like literally none.