If you are managing a railcar fleet involving loaded product, you’ve probably thought about the idea of storing your product offsite; either close to your manufacturing facility, or strategically placed, close to a particular consignee/customer. Using a Railcar SIT Yard proves to be a cost effective resource, and accomplishes, next level, service objectives.
As an expert in managing this process, Viper Rail Car Storage has established SIT-Ready storage sites around the country; with service options for every major Class 1 Railroad. This SIT process has been described as “a warehouse on wheels.” Viper sees this strategy most commonly used, but not limited to the Plastic Resin Industry.
A resin manufacture would know there are over 20 types of plastics that are transported worldwide. They are broken out into 7 standard classifications for plastics:
- PET (Polyethylene Terephthalate)
- HDPE (High-Density Polyethylene)
- PVC (Polyvinyl Chloride)
- LDPE (Low-Density Polyethylene)
- PP (Polypropylene)
- PS (Polystyrene)
- Other (BPA, Polycarbonate and LEXAN).
Various manufactures have their own niche market in this industry. Commonly, Plastic Pellets are made in larger batches to keep manufacturing cost effective. Once plastic pellets are made, they are loaded into a Hopper railcar. Once full, these Hoppers are transported to a storage-in-transit (SIT) yard. This storage relieves the plastic resin manufacturer or bagging facility from the costs of maintaining their onsite inventory.
Railcars in SIT Yards are more likely to go into a railcar storage yard closer to the shipper than the consignee/customer. Most SIT yards are viewed as the manufacturers offsite warehouse; not so much for the convenience of the consignee. Although there is a growing number of manufactures that are using SIT yards to strategically place their railcars into specific storage yards, close to their customer or usage point.
The Process of SIT:
The shipper pays for movement, to send their railcars to the SIT yard (this includes a Switch-In charge – and a Switch-Out charge when the railcars leave). Railcars can be stored for as long as needed. Once product is sold, and billing for the railcars is applied, the manufacture or consignee will pay a revenue move from the SIT yard to the consignee/customer. At that point, Viper Railcar Storage will facilitate the movement of the customer SIT railcars; to be shipped to their destination.
SIT storage yards car play a vital role in service. In a thriving market railcars may be moving often enough, that storage may be short-lived. In a stagnate or depressed market SIT yards may allow for a more detailed plan of attack; in how you function as a manufacture. Throughout any given time of the year there are demand variations for specific products. If the market demand is up, or depressed, your own variables will ultimately determine if a SIT yard is right for you.
Contact Viper Railcar Storage for more information.