Vehicle Makers Revise Shipping Methods As Train-Service Slowdowns Continue

This story appears in the July 14 print edition of Transport Topics.

Ford Motor Co. will ship some 2015 Transit vans in railcars that have been modified to accommodate larger vans, reflecting revised shipping preferences by vehicle makers as train-service slowdowns continued.

Three railroads modified some equipment to add 26 inches to the interior height on the lower of two levels to accommodate Transits that are as much as 9 feet, 2 inches high.

Ford, which announced the change last month, plans to use rail for shipments of Transits longer than 500 miles.

“Use of these modified railcars helps us to efficiently ship these large vehicles from our assembly plant, deliver them to our dealers and get them into the hands of our customers faster and more cost-effectively,” said Chris Lemmink, Ford vehicle logistics manager.

“It’s significant that they have expanded the shipping range to 500 miles,” said Robert Farrell, executive director of American Trucking Associations’ Automobile Carriers Conference.

“We are seeing that a lot more manufacturers are moving by truck over that distance,” he told Transport Topics. “They have expanded that distance because of the issues with the rails. The old rule of thumb was 300 miles or less moves by truck.”

All U.S. rail service slowed during the winter and hasn’t been restored to the level it was at this time in 2013. In the most recent reporting periods, the four largest U.S. railroads — Union Pacific, BNSF, CSX and Norfolk Southern — were running trains carrying vehicles an average of 7% more slowly than the year-earlier period.

“The severe railcar shortage continues to plague the auto industry, delaying the delivery of our vehicles to dealers and other markets,” said Katie Hepler, a spokeswoman for Chrysler. “We continue to work with the railroads to clear the backlog but have been forced to use alternatives to ensure that our dealers and export markets have adequate supply.”

The Alliance of Automobile Manufacturers trade group has voiced displeasure to the Surface Transportation Board about lingering delays precipitated by winter railcar shortages.

Ford’s Lemmink also commented on rail service and shipping choices. “We have an ongoing drive to ensure that we are getting the best equation between cost and speed of transport,” he told TT. “In lieu of these special rail cars, we would be car-hauling all over North America” at higher cost.

He emphasized the balance between speed and cost, saying that “if rail service degrades significantly, that might change the cost-speed equation” to make longer distance truck moves.

Asked about rail service quality, Lemmink said, without elaborating, “Many industries in North America are experiencing a degradation of rail service year-over-year.”

He also noted that, in general, railroads have begun investing more in auto-hauling equipment after falling short in that area in the past.

“The modified, articulated bi-level project with Ford Motor Co. demonstrates the success of years of collaboration,” Norfolk Southern spokesman Robin Chapman told TT, citing participation in the project by Union Pacific Railroad and Canadian National Railway.

About 400 railcars have been modified. The overall railcar height, which is 19 feet above the rail, wasn’t changed because of clearance limitations and cost issues.

Nissan, maker of the NV200 cargo van, and Mercedes-Benz, which makes Sprinters, didn’t respond to requests for comment about either the use of rail to move their cargo vans or the quality of rail service.

Hepler said Chrysler’s Ram ProMaster will be shipped solely by truck.

Chapman said Ford was the only automaker that is using modified rail equipment.

Farrell said car-haul trailers won’t need modifications like the railcars.

Ford wanted to build a vehicle with greater vertical space, allowing those who are up to 6 feet, 4 inches tall to stand upright inside.

Transit is intended to replace Ford’s long-standing E-series vans. Both brands will be sold side by side this year. The Transit was introduced first in Europe nearly 50 years ago.