2009 Quest for Quality Awards: RAIL/INTERMODAL: Rising stars
By Logistics Management Staff -- Logistics Management, 8/1/2009
Back in 2008, it seemed that most freight transportation modes were acting out a depressing scene from a classic Ingmar Bergman film. The cold, mist, and fog seemed to engulf all modes, with one exception: the railroads.
While truckers and ocean carriers were watching their volumes and earnings sink, business on the rails appeared to be chugging along as carriers exercised strong pricing power and financial returns despite the grim freight climate. Fast forward to July 2009 and it looks as if the recession has finally caught up to the rails. As Group News Editor Jeff Berman reported last month in our 2009 Annual Report, volumes are now down on a weekly basis and the traditional tension between carriers and shippers is heating up again as shippers contend that rates are still too high considering the current state of economic affairs.
Now, more than midway through 2009, Berman adds that the railroads continue to plead their case for their pricing structure, pointing to the need for increased infrastructure to meet future freight projections. But rail shippers continue to turn a deaf ear stating that the rails are still having their way by charging rates that don’t match level of service.
Despite the continued wrangling between parties, we may have a glimmer of good news. If the results of our 2009 Quest for Quality are any indication, responding rail shippers tell us that rail and intermodal service providers have improved their On-time Performance scores over 2008—and these key scores appear to have trickled down to show improved perceived Value. Could we be discovering new rising service stars?
We just might. In fact, the overall weighted average scores for both categories we measure have improved by more than a point over 2008, showing an uptick in overall perceived service performance.
In the Rail/Intermodal Service Providers category this year we found that every winners’ On-time Performance and Value scores have improved over last year’s. Coming out on top for the fourth year in a row is Triple Crown Services with a weighted average of 35.14. While Triple Crown’s overall weighted score dropped slightly from 2008, the carrier improved in its On-time Performance (11.19), Value (9.69), and Customer Service (6.17).
Overall, Triple Crown placed first in On-time Performance, Customer Service, and Equipment & Operations. Pacer took the top spot in Value posting a 9.81, and BNSF Railway pulled in first with a 3.52 in Information Technology. Scores in Equipment & Operations dropped by more than a point for the winners in this year’s category, signaling a shift in shipper’s perceptions in this key attribute category.
In the Intermodal Marketing Companies category this year we see some improvements. In fact, the 2009 overall average jumped by 1.27 points over 2008, the average for On-time Performance jumped by 1.25 points, and the average for Value shot up by 1.26 points.
Pulling in ahead of the pack this year is J.B. Hunt Intermodal, their third appearance on the red carpet in as many years, with an impressive 35.29 overall score. J.B. Hunt also placed first in Value (9.49) and Equipment & Operations (5.17). Landstar led the pack in On-time Performance (10.99); Schneider Intermodal Services took a first in Information Technology with its 3.83; and Alliance Shippers rounds out the attribute category winners with a 6.34 in Customer Service.
| On-time Performance | Value | Information Technology | Customer Service | Equipment &Operations | Weighted Score | |
| Logistics Management - 2009 Quest for Quality - Railroads/Intermodal Marketing/Service Providers- Reed Business Information - June 2009 | ||||||
| Triple Crown Services | 11.19 | 9.69 | 3.20 | 6.17 | 4.90 | 35.14 |
| Pacer | 9.96 | 9.81 | 3.39 | 5.45 | 4.60 | 33.21 |
| CSX | 10.33 | 8.68 | 3.46 | 5.78 | 4.71 | 32.95 |
| Norfolk Southern | 10.29 | 8.74 | 3.24 | 5.58 | 4.58 | 32.43 |
| BNSF Railway | 9.97 | 8.63 | 3.52 | 5.41 | 4.60 | 32.14 |
| AVERAGE | 10.04 | 8.67 | 3.31 | 5.50 | 4.52 | 32.03 |
| On-time Performance | Value | Information Technology | Customer Service | Equipment & Operations | Weighted Score | |
| 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 - 2009 Quest for Quality - Rail Intermodal Marketing Companies - Reed Business Information- June 2009 |
||||||
| J.B. Hunt Intermodal | 10.73 | 9.49 | 3.76 | 6.16 | 5.17 | 35.29 |
| Alliance Shippers | 10.77 | 9.19 | 3.75 | 6.34 | 4.88 | 34.93 |
| Landstar Global Logistics | 10.99 | 9.14 | 3.67 | 6.02 | 4.92 | 34.73 |
| Schneider Intermodal Services | 10.71 | 9.23 | 3.83 | 5.93 | 5.00 | 34.71 |
| Hub Group | 10.22 | 9.43 | 3.47 | 5.88 | 4.85 | 33.85 |
| NYK Logistics | 10.50 | 9.11 | 3.37 | 5.85 | 4.80 | 33.63 |
| AVERAGE | 10.18 | 9.19 | 3.49 | 5.85 | 4.80 | 33.50 |
View All On-Demand Webcasts