Quest for Quality - RAIL/INTERMODAL: Popularity rising in the polls
-- Logistics Management, 8/1/2008
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2008 Quest for Quality Awards: 25th Annual Quest for Quality Awards: Delivering on the promise THIRD-PARTY LOGISTICS: Shifting in the polls FREIGHT FORWARDERS: Foreign policy titans AIR CARRIERS: Delivering under pressure OCEAN CARRIERS: Steadfast incumbents RAIL/INTERMODAL: Popularity rising in the polls TRUCKLOAD: Influential long-haulers REGIONAL LTL: Perennial local front runners NATIONAL LTL: Canvassing the nation Order Online 
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As our Jeff Berman reported last month in our 2008 Annual Report, the two sides of the rail equation—shippers and carriers—seem to have arrived at a stalemate. On one side are the Class I carriers that, in most cases, are barely earning above their cost of capital—but still have pricing power at a time when volumes are largely down. On the other side of the aisle are shippers that contend that rates are excessive and service is still lacking.
Well, despite this ongoing bickering, the rail/intermodal industry is actually chugging along at a pretty healthy pace, especially when you consider the current state of the economy and the fact that other transportation modes have minimal pricing power and are hand-cuffed by rising fuel costs.
One solid signal that service on the rails is showing some improvement is the fact that this year’s overall weighted averages for both of our categories in this section (Rail/Intermodal Service Providers and Intermodal Marketing Companies) have seen significant improvements over last year’s score, indicating that shippers have issued slightly higher scores in 2008. However, we do see four fewer winners making the cut this year.
In this year’s Rail/Intermodal Service Providers category the overall weighted average jumped 3.38 points over the 2007 average to hit a lofty 32.88. It’s also important to note that this year’s attribute averages for Information Technology, Customer Service, and Equipment & Operations all improved. In fact, this year’s Equipment & Operations average score jumped an impressive 3.07 points to ring in at 7.47, indicating that all of this year’s winners have made improvements in this area.
We find Triple Crown Services posting an inspiring 37.29 weighted score, one of the best overall scores in our entire 2008 survey. Triple Crown topped all winners in this category in On-time Performance (10.06), Value (8.56), Customer Service (5.83), and posted a remarkable 8.65 in Equipment & Operations this year—topping the highest 2007 score in this attribute by 3.94 points.
Survey mainstay Norfolk Southern pulled in second with an overall weighted average of 34.73, scoring top marks this year in Information Technology (4.44). BNSF Railway rounds out this year’s service providers that made the cut, posting a weighted average of 34.44. And even though BNSF won Quest for Quality gold last year, it’s important to note that the provider improved on its Information Technology, Customer Service, and Equipment & Operations scores since the 2007 survey.
In the Intermodal Marketing Companies category, we find three winners that beat the overall weighted average of 32.23—a 1.51 point improvement over the 2007 weighted average. This year, Landstar Logistics not only won the overall weighted average title (35.94), but the provider also scored a rare sweep across all of the key attributes categories, scoring a 10.11 in On-time Performance, 8.88 in Value, 4.59 in Information Technology, 6.24 in Customer Service, and a 6.13 in Equipment & Operations.
And while the sweep is rare, it certainly doesn’t outshine the impressive scores posted by Alliance Shippers and J.B. Hunt International—two providers that seem to make the cut year after year. Alliance Shippers posted a weighted average of 34.56, trailing Landstar by just a few tenths of a point in four of the five key attribute categories. While J.B. Hunt International rounded out this year’s winners, putting up a 32.41 weighted average.
| Rail/Intermodal Service Providers | ||||||
| On-time Performance | Value | Information Technology | Customer Service | Equipment & Operations | Weighted Score | |
| Triple Crown Services | 10.06 | 8.56 | 4.18 | 5.83 | 8.65 | 37.29 |
| Norfolk Southern | 9.47 | 7.40 | 4.44 | 5.53 | 7.90 | 34.73 |
| BNSF Railway | 9.31 | 7.69 | 4.35 | 5.39 | 7.69 | 34.44 |
| AVERAGE | 8.67 | 7.48 | 4.13 | 5.12 | 7.47 | 32.88 |
| Logistics Management - 2008 Quest for Quality - Rail Intermodal Service Providers - Reed Business Information - June 2008 | ||||||
| Intermodal Marketing Companies | ||||||
| On-time Performance | Value | Information Technology | Customer Service | Equipment & Operations | Weighted Score | |
| Landstar Logistics | 10.11 | 8.88 | 4.59 | 6.24 | 6.13 | 35.94 |
| Alliance Shippers | 9.64 | 8.84 | 4.31 | 6.21 | 5.56 | 34.56 |
| J.B. Hunt Intermodal | 9.07 | 7.66 | 4.41 | 5.83 | 5.45 | 32.41 |
| AVERAGE | 8.93 | 7.93 | 4.25 | 5.67 | 5.46 | 32.23 |
| All scores are weighted. Weighted scores are determined by multiplying the average raw scores by the average importance of each attribute (1= least important; 5= most important). To find the attributed weights for this category, see the introduction to the Quest for Quality report. Logistics Management - 2008 Quest for Quality - Rail Intermodal Marketing Companies - Reed Business Information - June 2008 |
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