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Re: (erielack) Gas prices and their effect on the EL

Paul,

Re the B&O/RDG/CNJ Trailer Jets, I remember visiting XC Tower Cranford 
around Thanksgiving, just as the gasoline shortage of 1973 really got going. 
  That's when the op told me that the trailer trains had just been 
discontinued.  I had been there during the summer, and remember watching the 
Jet go west around 9:30PM, with two B&O GP40s and maybe 35 loaded TOFC 
flats.  It was neat watching a fast w/b train rolling by XC on that 
straightaway (by 73, the Jet was the last fast CNJ freight).  You saw the 
headlight approaching in the dark from under the LV bridge, then watched the 
train quickly pass thru the floodlight area next to the tower.  Kind of like 
watching NY99 at WJ Tower Ridgewood (required EL content!).  Then you heard 
him working his way up the hill thru Fanwood for a few minutes (just as 
you'd hear an EL w/b from WJ working uphill a bit thru Waldwick).  JIM 
GEROFSKY


>From: "Paul Brezicki" <doctorpb_@_bellsouth.net>
>To: "EL Mailing List" <erielack_@_lists.railfan.net>,"Jim Gerofsky" 
><graytrainpix_@_hotmail.com>,"Paul Tupaczewski" <paultup@comcast.net>
>Subject: Re: (erielack) Gas prices and their effect on the EL
>Date: Sat, 2 Jun 2007 08:18:26 -0400
>
>Jim, Paul and List,
>
>Here are some figures for trailer handlings at Chicago 51st St illustrating 
>the EL traffic picture at that time.
>
>Loaded trailers, Dec '73 vs Dec '72: up 50.7%
>
>All trailers, first half '74 vs first half '73: up 21.4%
>
>Since fuel consumption rises exponentially with train speed, rising fuel 
>price disproprtionately impacts higher-speed service such as TOFC, and as 
>you say was probably the knockout punch for a service that was on the ropes 
>anyway. Jim, do you know exactly what month the CNJ-RDG trains were 
>discontinued?
>
>Paul B
>
>From: "JG at graytrainpix" <graytrainpix_@_hotmail.com>
>Subject: Re: (erielack) Gas prices and their effect on the EL
>
>To the various Pauls and other friends on the List,
>
>Another thing to consider was that by '73, the EL was living day-to-day as
>far as cash flow went.  The oil price spike meant an immediate jump in
>expenses.  Due to ICC rate oversight at the the time, these expenses
>couldn't be immediately passed along to the shippers.  And although traffic
>volume increased a bit, as Paul B described, even that had a lag of at 
>least
>a few weeks; most shippers can't change their distribution logistics
>overnight.  So, there was no more leeway, as far as operational cash flow
>went, for the EL to continue taking losses on a new service while awaiting
>new customers.  Too many fixed costs to meet.  Interestingly, at the same
>time, the RDG & CNJ abolished their B&O Trailer Jet operations between
>Philly and E'Port/C'Paw.  Was told by a CNJ employee that it was due to the
>oil price spike. However, I was also told that the trains had been getting
>smaller anyway due to competition, especially from the LV Apollos; oil
>prices were probably the last straw to the extremely cash-poor CNJ.
>Business for the EL, CNJ and other eastern roads got better due to 
>diversion
>from truckers, but it was only for a handful of months; the spike in labor
>costs due to inflation, and then the recession, soon hit.
>
>

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