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

Shippers are trying to make sense of quickly shifting ocean carrier alliances and partnerships—with the viability of some players even brought into question.

The questions for the most recent Semiannual Economic Forecast, which was released last week, included: 1-has the strength of the U.S. dollar had a negative, negligible or positive impact on their organization’s profits?; 2-has the net impact of the depressed prices of oil and related commodities been negative, negligible, or positive for their organization’s profits; and 3-how would they characterize the combined impact of their organization’s profits on the strength of the U.S. dollar and the depressed prices of oil and related commodities.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that that U.S. trade with its North America Free Trade Agreement (NAFTA) partners Canada and Mexico dropped 5.8 percent on an annual basis in March to $90.5 billion.

Shippers sourcing their goods out the Port of Oakland’s largest marine terminal will soon need to make an appointment drayage providers before their cargo is released.

U.S. Carloads fell 10.6 percent at 244,290, and intermodal containers and trailers were off 6.5 percent at 262,693.

Comments

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


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA