Hub of activitv New challenges for relobds

tion of more trucks. Freeman anticipates business will stay strong for another 16 to 18 months.

Tom Stokes, Quaboag Transfer, Bondsville, Md., noted,"Current volume is lower than usual for this time of the year. but we are receiving significant inquiries from new shippers in Eastern Canada who are experiencing severe truck shortage issues, which is prompting them to consider rail to truck transloading. Volumes are lighter due to record high S-P-F market price levels, which limit speculative inventory buys because of potential downside risk. Also rail car supplies are tight on the CN, which is the primary origin for my traffic."

He said, "Minor staff adjustments have been instituted but for the most part we maintain status quo on equipment/staffing/services in anticipation that we will be securing new business from recent inquiries."

Stokes foresees volumes rising over the third and fourth quarters.

LITIGH lumber and plywood prices |'land the tight availability of rail cars have translated to both significantly lower and markedly higher business for reloads, according to a survey of l7 transloaders across the country.

Out West. volumes were consistently higher than last year's. East of the Rockies, however, it was hit and miss. Just within Texas, San Antonio is booming, while Fort Worth appears slower than normal. In Houston, domestic business is down, but foreign lumber imports are up. Consequently, PCI Group, Fort Worth, has added staff in some areas, while making unwanted layoffs in others. PCI's Randy Gaston attributes the conditions to rail car shortages, lumber prices, fuel prices, insurance costs, overstock- ing, and the economy in general.

The trend, Gaston said, has been increasing demand at all locations, and he expects to be "hitting on all cylinders" at all locations by mid to late summer.

Compared to this time last year, business is about 357o higher for Carolina Plum, Gold Hill, N.C. "I think the biggest reason is because of the pricing on spruce and OSB has risen significantly, therefore people are buying the products from companies who have material at the reloads," Andy Freeman explained. "They can watch the market and buy at the right time. Also, they are not tying up their money and waiting on the cars to get to them."

Carolina Plum regularly updates its equipment, including the recent addi-

At St. Louis Reload. Madison. Il.. business is down 40Vo year to date due to high lumber prices. Mark Fischer expects conditions to rebound by late summer.

So far this year, volume is up about 3O%o at Fort Pierce Reload. Fort Pierce, Fl. Pete Myers attributes the activity to a "heavier building glut in Florida."

To take full advantage of the building boom, Myers said, "we've made changes in handling new materials. In addition to lumber and steel, we now handle brick, clay and potentially some aggregate. We're growing."

He said how long the good times last "depends on how long favorable homeowner financing rates last and as long as plywood stays cheap and if the concrete shortase doesn't worsen."

At Trans Load Limited, Birmingham, Al., business is at the sarne level as last year due to an inability to get rail cars. Ren Heartsill reports the demand is there, but shipments that used to take three lveeks can now take two months.

Faced r.vith the tight availability of rail cars, some shippers have turned to trucks. As a result. Trans Load Lirnited has hired more truck drivers.

"Once the availability of cars opens up, business on our end lvill increasc," said Heartsill.

Rail service has also slorved things dor'vn at Montrose Reload, Montrose, Co. "The UP only comcs in once a week." explained Larry Hamacher.

Montrose Reload's trucking business. on the other hand, "is smoking," he said. "lt's party the high fuel prices-they've caused a numbcr of companies to go under. There arc not as many trucks as there used to be."

Demand at WoodPerfect, Ltd., Guin, AI., is "a little higher than last year," according to Lec Dobbs. He attributes the increase to "cheap money" and "better economic conditions." ln response, the company added one new lili truck and operator, a new truck and driver. three nc"v 4tl- ft. trailers. and one new salcsman.

The reload volume at Robert Meador Warehousing & Distribution. Mobile. Al.. is dolvn significantly, Iikely due to the high prices of lumber and plywood. As a balance, said Michael Mcador, "our lumber imports and dornestic plywood business is at an all-time hish. We have not had to adjust your buying patterns, and brace yourself for a long, tough battle of inventory shorts and long transit times." growth to continue to be constrained by the railroads. "In the lumber industry. we tend to look at the transportation side of the business rvith blinders on," said Greg Martin, Cascade Warehouse, Salem, Or. "We don't realize that the rail and truck industries have surges we never experience. except in def'ault. Therc will be a rail and truck surge in late August through early October fbr the grain harvest. The interrnodal business begins experiencing a major surge in early September for Christmas goods, and the truckers are hit in late October by the Christmas tree market. Car supply shortages are a direct result of congcsted lanes of trafflc." hirc any additional rvorkers, but have been cross-training employces from our chemical division to work in the lumber side of our busincss."

Like the other reloaders intervicwed, Meador expects current volumes to continue at least through the end of the year.

Nonetheless, some expect that

As examples, Martin points to bottlenecks in Texas/Oklahoma corridor. rvith Canadian produccrs pushing into Midwestern markcts, and Chicago. II., r,vhere "it is a matter of managing three Class One carriers into the 'shared access' of the Northeastern Seaboard. It all adds up to a disaster r,vaiting to happen."

He advises, "Dig in your heels. adjust your buying patterns, and bracc yoursclf for a long, tough battle of inventory shorts, and long transit tirnes for truck and rail."