Pacer, CRST team up for drayage service agreements

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.

By ·

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, 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!

Article Topics

CRST · Drayage · Pacer International · All Topics
Latest Whitepaper
The View from the New “Single Window”
The single window, officially known as the "International Trade Data System," operates via the Customs and Border Protection (CBP) agency's Automated Commercial Environment (ACE) platform, and serves as a single point of contact for all trade filings.
Download Today!
From the March 2017 Issue
WMS vendors are stepping up to the plate and developing functionalities and solutions that meet the complex needs of today’s companies. Our top analysts take a peek into these developments and discuss the DC of the future and the software that will support it.
5 Supply Chain Trends Happening Now
2017 Warehouse/DC Equipment Survey: Investment up as service pressures rise
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2017 Trucking Regulations & Infrastructure Update
In this session our panel brings shippers up to date on the state of transportation regulations. Discussion will revolve around regulatory reform, aspects of the federal highway bill and what the transportation landscape looks like in the early days of the Trump administration.
Register Today!
EDITORS' PICKS
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...

2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...