Subscribe to our free, weekly email newsletter!


New Miss.-based interchange paying off for Schneider’s cross-border shipping

By Jeff Berman, Group News Editor
November 25, 2013

Schneider National, the nation’s second-largest truckload carrier which traditionally has been a major player in long-haul intermodal traffic, recently announced it has established a new interchange for its Mexico Direct service, which it describes as a non-stop borderless intermodal service that was launched in 2006.

In October, Schneider said it began providing service in the form of Mexico cross-border intermodal loads through Jackson, Miss.-based steel wheel interchange, with its intermodal Mexico Direct loads moving between Chicago and Jackson on the Canadian National Railway and then between Jackson and Mexico on the Kansas City Southern Railway.

“Our customers needed faster cross-border service, particularly between Mexico and Chicago,” said Jim Filter, senior vice president, Intermodal Commercial Management, Schneider. “We have been working to find a better solution for some time. After modeling and testing alternatives, we began working with the CN.”

Filter said that this new interchange provides myriad benefits for shippers, including saving a day of transit time compared to other cross-border intermodal moves.

The reason for this, he said, is that the steel-wheel interchange keeps freight moving, and unlike over-the-road truck service, Schneider Intermodal loads do not stop on either side of the border.

“Another benefit of cross-border shipping via intermodal is the higher level of security that this mode provides,” said Filter.  “Intermodal ramps are very secure locations and when containers are loaded into well cars the bottom container physically cannot be opened and the top container is riding more than 15 feet off the ground.”

Going forward, Filter said Schneider is tying the service into other points beyond Chicago, noting it has already tied this service into many destinations, such as in Canada, St. Paul, Seattle and Portland and potentially other points in the Northeast.

“Many shippers do not believe that intermodal is an option because of their Incoterms,” noted Filter. “Schneider’s home field advantage in Mexico has provided this expertise for over 20 years and eliminates these barriers.” 

Intermodal continues to gain shipper traction as an effective mode, with many shippers willing to sacrifice longer transit times for strong service and fuel savings, among other benefits.

IANA President and CEO Joni Casey recently told LM intermodal continues to provide: more consistent, economical service; conversions from highway based on pricing differentials; shippers already using intermodal increasing their spend; transloading volumes; and small growth contribution of intermodal trailers. 

Casey added that it is still too early to tell if the Federal Motor Carrier Safety Administration’s new hours-of-services regulations are driving more freight to intermodal.  But that could change in the coming quarters, with industry estimates pegging the total loss of trucking capacity and production at 2-to-3 percent since July 1, when the new HOS rules took effect.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

When it comes to the chances of the December 31, 2015 Positive Train Control (PTC) deadline being extended, something which railroads say is badly needed, it appears they need to be prepared to be disappointed. That was the chief takeaway of a statement from Sarah Feinberg, acting administrator of the United States Department of Transportation’s Federal Railroad Administration (FRA).

It’s said that innovation will lead the economy out of its current funk. But how does an organization become a perpetually innovative company? That’s one of the questions Kai Engel and his co-authors at A.T. Kearney set out to answer in their new book Masters Of Innovation.

At $2.843, the average price per gallon was down 1.6 cents, following last week’s 1.1 cent drop and a cumulative 7.1 cent cumulative drop over the last five weeks.

LM Group News Editor Jeff Berman caught up with UPS Freight President Jack Holmes at the National Shippers Strategic Transportation Council’s (NASSTRAC) Annual Conference and Exhibition. Berman and Holmes spoke about various aspects of the less-than-truckload sector (LTL), as well as related freight transportation news and trends.

In the third-party logistics (3PL) sector, the ongoing trend of merger and acquisition (M&A) activity never seems to take a break. That is apparent in recent weeks alone, with XPO Logistics recent acquisition of Norbert Dentressangle for $3.53 billion, Echo Global Logistics scooping up Command Transportation for $420 million, and Kuehne+Nagel buying ReTrans for an undisclosed sum.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA