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

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.

By ·

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, 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. Contact Jeff Berman

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!

Latest Whitepaper
Digital Issue: The Current State of Third-Party Logistics Services
It has become quite clear that logistics professionals are now facing an unprecedented set of challenges. From tightening capacity, to ongoing regulation hurdles, to the complexity brought on by e-commerce, today’s shippers are transforming the way they manage their logistics operations.
Download Today!
From the June 2017 Issue
Here are five trends that every shipper­—and potential shipper—must watch as the demand for experienced logistics and supply chain professionals soars.
2017 Rail/Intermodal Roundtable: Volume stable, business steady
Cross-Border Logistics: NAFTA tune-up time
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Women in Logistics: Breaking Gender Roles to Win the War for Talent
In this session you'll hear from a panel of women who are now leading top-level logistics and supply chain operations. The panel will share their success stories as well as advice for women who are now making their way up the ladder.
Register Today!
EDITORS' PICKS
2017 Top 50 3PLs: Investment and Consolidation Maintain Traction
The trend set over the past few years for mergers and acquisitions has hardly subsided, and a fresh...
The Evolution of the Digital Supply Chain
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management,...

2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...