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The Class I freight railroads have gotten ridiculously bad

Posted on 4/26/22 at 10:12 am
Posted by VolsOut4Harambe
Atlanta, GA
Member since Sep 2017
12856 posts
Posted on 4/26/22 at 10:12 am
As some know I work for a very large retailer that sells a lot of bulk product. A good portion of our bulk freight is shipped by rail.

This past Friday we received a notice from the Union Pacific that due to "supply chain challenges stemming from the pandemic" they were mothballing 1000 boxcars and 1000 flatcars - amid an already short supply of boxcars. This comes after they announced they were putting caps on annual customer carloads. These actions are essentially blaming shippers for their executive decision to drive the railroad into the ground by implementing PSR and firing half of their crews and tearing up yard track, as well as putting good motive power into storage.

The CSX can't even regularly show up for a 5 day/week switch, and they subsequently charge demurrage out of the arse for railcars sitting idle on days that they did not service the building. When we dispute the charges they will claim that the blue flag (warning marker that our associates put on the rails to tell the train crews that the cars were being unloaded) was up, when it was clearly not, and turn down the dispute.

Both of these railroads have in turn implemented strict employee attendance policies that punishes anyone for taking mere hours off. The UP was named America's worst employer for 3 years in a row by Glassdoor.

The BNSF and NS are only slightly less awful.

PSR has ruined railroads in the name of shareholder dividend boosting. I'm pretty pro-free market and anti-regulation, but you have to wonder if at some point the feds step in and put a stop to this shite. The railroads' god-awful service is a huge reason why we're seeing the current amount of domestic supply chain issues.
Posted by dewster
Chicago
Member since Aug 2006
25947 posts
Posted on 4/26/22 at 10:19 am to
My clients have been complaining about it for a couple of years now. Box cars and tankers.
Posted by keakar
Member since Jan 2017
30152 posts
Posted on 4/26/22 at 10:19 am to
im still waiting on that high speed train from new york to california they promised 15 years ago. billions were spent on it and i dont think the rails even made it from california to the state line
Posted by Planetarium
Member since Jul 2020
303 posts
Posted on 4/26/22 at 10:20 am to
CP seems to be the only PSR railroad that hasn’t self destructed. Their acquisition of the KCS should be quite interesting.
Posted by bamarep
Member since Nov 2013
52090 posts
Posted on 4/26/22 at 10:21 am to
Y'all realize the Biden Administration is orchestrating this crisis right?

Not to sound political but the truth is the truth.
Posted by junkfunky
Member since Jan 2011
34994 posts
Posted on 4/26/22 at 10:24 am to
Those services employees are just lazy fricks according to a manager I know. But hey, they got a new wheel turning machine so they don't have to pull axels. Might be able to get one or two of 1000 cars back in service.
This post was edited on 4/26/22 at 8:17 pm
Posted by VolsOut4Harambe
Atlanta, GA
Member since Sep 2017
12856 posts
Posted on 4/26/22 at 10:24 am to
quote:

Y'all realize the Biden Administration is orchestrating this crisis right?

Not to sound political but the truth is the truth.


I wouldn't piss on Brandon if he was on fire, but I don't think they have much to do with this. It stems from the C-suite desire to boost stock price and operating ratio.
Posted by Tyga Woods
South Central Jupiter Island, FL
Member since Sep 2016
37630 posts
Posted on 4/26/22 at 10:24 am to
Probably because TigersHuskers is playing on his damn phone and not driving the frickin trains
Posted by Horsemeat
Truckin' somewhere in the US
Member since Dec 2014
14411 posts
Posted on 4/26/22 at 10:26 am to
quote:

PSR has ruined railroads in the name of shareholder dividend boosting. I'm pretty pro-free market and anti-regulation, but you have to wonder if at some point the feds step in and put a stop to this shite. The railroads' god-awful service is a huge reason why we're seeing the current amount of domestic supply chain issues.
Surface and Transportation Board is having hearings on them now, but I've done my part by voting against reappointment of the entire board of CSX. If they don't quit fricking around the feds are going to bust these companies up - the amount of mergers over the last 3 decades has really stifled competition by rail and its going to get worse now that CN is taking over KCS. The crap going on at the docks out west over the last year fell squarely at the feet of the railroads but naturally the media covered for their union buddies and blamed the trucking industry which doesn't run the ports or the intermodal centers for the containers to get picked up.
Posted by mattz1122
Member since Oct 2007
54494 posts
Posted on 4/26/22 at 10:29 am to
This post was edited on 4/26/22 at 10:30 am
Posted by IAmNERD
Member since May 2017
21690 posts
Posted on 4/26/22 at 10:35 am to
quote:

If they don't quit fricking around the feds are going to bust these companies up

I wouldn't count on it. Railroads and political corruption are as American as apple pie and baseball. The politicians have been making piles of cash from railroad companies from day one.
Posted by Horsemeat
Truckin' somewhere in the US
Member since Dec 2014
14411 posts
Posted on 4/26/22 at 10:36 am to
quote:

Y'all realize the Biden Administration is orchestrating this crisis right? Not to sound political but the truth is the truth.
Biden fricking sucks, but this isn't on him - they're just trying to put lipstick on the circus freak pig that the corporates created with PSR because for some reason Bootyjudge and his ilk have a boner for union railroads. STB has turned a blind eye to what has been going on with them for a very long time and the end result is what OP was talking about - they're too worried about squeezing money from their huge customers and are blatantly telling their smaller customers to get fricked because they can't make as much profit off of them. Meanwhile these companies are hiring/furloughing/firing employees at a crazy rate because of "safety" which just means there's a bunch of authoritarians in a department that have never driven anything larger than a Prius that have to justify their jobs.

20 years ago getting a railroad job was seen as a way to set yourself up for life and it was highly competitive to get one - now they top the list of worst employers in the country and are having to dish out signing bonuses (with multiple strings attached, naturally) to attract labor. E.H. Harrison has absolutely destroyed an entire industry.
Posted by LegendInMyMind
Member since Apr 2019
66136 posts
Posted on 4/26/22 at 10:38 am to
I've been seeing longer and longer trains over the past few months. I don't know if it is linked to what you are talking about, though.

Saturday I sat for one long enough to need two engines, two DPUs in the middle(ish) and a DPU at the end. It took that train nearly 20 minutes to clear the crossing, and it was moving at a decent speed. It was a mixed car train with some coal gondolas.
Posted by atrain5
Baton Rouge Correctional Facility
Member since Sep 2017
2209 posts
Posted on 4/26/22 at 10:41 am to
What kind of product to you ship? We have a lot of steel for our facility via rail on flat cars and it hasnt been terrible, but the last two months we have seen it go significantly downhill in terms of speed of deliveries and pricing.
This post was edited on 4/26/22 at 10:43 am
Posted by DallasTiger
THE Capital City
Member since Jan 2004
4408 posts
Posted on 4/26/22 at 10:43 am to
quote:

I wouldn't piss on Brandon if he was on fire, but I don't think they have much to do with this. It stems from the C-suite desire to boost stock price and operating ratio.


Spot on.
Posted by SantaFe
Baton Rouge
Member since Apr 2019
7172 posts
Posted on 4/26/22 at 10:58 am to
Horsemeat is on the right track. I have several friends who 'work' for BNSF. The new 'attendance' policy is driving labor right out of the company . My friends are retiring at the first chance they can get and they tell me others are just outright dragging up and quitting . I believe that the class Is are attempting to break the Locomotive Union's back. The class Is are trying to implement a one man crew, only one person running those long assed trains. I believe that would be a safety disaster, they already got rid of the caboose.
Posted by jnethe1
Pearland
Member since Dec 2012
16143 posts
Posted on 4/26/22 at 11:03 am to
Are they union?
Posted by VolsOut4Harambe
Atlanta, GA
Member since Sep 2017
12856 posts
Posted on 4/26/22 at 11:03 am to
quote:

I've been seeing longer and longer trains over the past few months. I don't know if it is linked to what you are talking about, though.


It is, directly. Longer trains = fewer trains, less manpower, fewer locomotives needed.
Posted by RealDawg
Dawgville
Member since Nov 2012
10715 posts
Posted on 4/26/22 at 11:44 am to
Fun time to be in brokerage.
Posted by Legba007
Franklin, Tn
Member since Jul 2013
2451 posts
Posted on 4/26/22 at 11:52 am to
I work for CSX, we can't even switch 3/4 of our customers. They call the STB all the time, can't blame these people. They have a business and rely on us (RR) to bring their product and we spend 12 hrs yarding these 16,000 foot trains.

PSR is a joke to everyone but the 1% who have bought into this model of railroading
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