Subscribe to our free, weekly email newsletter!


Pacer, CRST team up for drayage service agreements

By Jeff Berman, Group News Editor
May 07, 2012

In a move designed to drive intermodal drayage efficiencies and provide incremental capacity, freight transportation and logistics services providers Pacer International Inc. and CRST International recently announced they have inked multi-modal dedicated drayage agreements.

And CRST said it has established a separate operating unit, entitled CRST IMX, within its Dedicated Services, Inc. subsidiary that will offer this new service and market, sell, and operate an efficient network of intermodal drayage and other short-haul trucking services that use its on-site management, dedicated tractors, and qualified drivers.

Officials from both Pacer and CRST said that CRST IMX will initially provide incremental capacity to Pacer as part of its intermodal door-to-door product offering, with the companies planning to add 200 trucks this year in Chicago, IL and Salt Lake City, Utah. They added that CRST will dedicate drayage capacity using the latest model day cabs that will enable Pacer to service heavier commodities and be more eco-friendly and fuel-efficient. Another benefit they cited is that this collaboration will allow each company to attract additional short-haul business, which will reduce empty miles and better balance equipment flows.

“[This arrangement] provides supplement capacity for Pacer,” a Pacer spokesperson told LM. “It will allow Pacer to reduce costs while adding a high service dray alternative. Pacer is currently at a 62 percent usage ratio for our controlled fleet and this arrangement will allow us to achieve a rate above 85 percent by year-end.  Finding additional dray capacity and owner operators has become increasingly difficult in today’s market.  The CRST partnership allows Pacer to obtain the capacity it needs to fuel its growth in a cost effective manner.”

The spokesperson added that the cost improvement Pacer is expecting in some markets may exceed 20 percent for first 200 trucks.  And Pacer expects additional incremental future savings as it more tightly integrate our dispatch, planning, and short haul trucking market opportunities that increase operational efficiencies by reducing unproductive and empty miles.

In terms of shipper benefits of this partnership, the Pacer spokesperson said that CRST IMX allows Pacer to continue to enhance its best-in-class door-to-door intermodal product that its customers desire. And she said it provides Pacer with additional controlled capacity to serve its expanding customer base.

“Customers will see increased dray and containers capacity with improved turns as our dray efficiencies improve,” the spokesperson said. “Service reliability will continue to improve providing a higher degree of customer satisfaction. Pacer will increase our ability to handle heavier loads for customers who commodities tend to run heavier thereby helping to reduce their overall shipping costs.”

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 and other ocean cargo carrier stakeholders should be cheering the announcement made today by The U.S. Coast Guard, as it formally notified the International Maritime Organization through a Declaration of Equivalency that the United States position on SOLAS is that there are multiple methods to submit the combined cargo and container weight (Verified Gross Mass or VGM).

The proposed $4.8 billion acquisition of TNT Express N.V. by FedEx took a major step closer to becoming official today, with the company and TNT announcing today that they have received unconditional approval of the offer from the Ministry of Commerce People’s Republic of China (MOCFCOM).

March shipments at 798,180 trailed February by 12 percent and were down 19 percent annually. For the entire first quarter, shipments were relatively flat annually, rising 0.27 percent to 2,587,988.

OCEMA says it has placed a priority on working with other stakeholders to find operational solutions that will help U.S. exporters, carriers, and marine terminals prepare for the implementation of the SOLAS Verified Gross Mass (VGM) rule.

The first quarter is typically the slowest period of freight demand for LTL carriers. With a few notable exceptions, that was reflected in first quarter earnings reports of the major publicly held LTL carriers.

Article Topics

News · CRST · Pacer International · Drayage · All topics

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