Subscribe to our free, weekly email newsletter!


Schneider National, CSX reach agreement on expanded intermodal services in Northwest Ohio

By Jeff Berman, Group News Editor
June 11, 2012

Truckload carrier Schneider National and Class I railroad carrier CSX said they have reached an agreement in which they will expand services for shippers in Northwestern Ohio through the addition of new Ohio-based rail ramps in Marion and North Baltimore.

The relationship between Schneider and CSX goes back to 2008, when CSX became Schneider’s primary Eastern rail provider, and earlier this year they announced a multi-year agreement for CSX to continue to serve as one of Schneider’s primary rail providers.

In terms of today’s news, Schneider says it provides customers with capacity and operational interfaces to leverage the efficiency of rail moves, as well as improved transits that will improve service and capability throughout the U.S. and Mexico and offer additional multi-modal offerings for shippers, too.

“We have been in extensive conversations with CSX to really understand how we can best serve the Ohio marketplace,” said Steve Van Kirk, vice president, Intermodal commercial management for Schneider. “We have been in Marion for a while, and CSX had made a major investment in its Northwest Ohio facility. So from our perspective we wanted to find a way to be able to gain the benefits that came out of that CSX investment…to be able to serve more marketplaces and also improve our transit and our service level for our customers.”

Regarding improving transit, Van Kirk explained that this will result in the increased frequency of train service. As an example, for any shipper moving freight over a seven-day period, the more frequency in train service there is, average transit times will be lower.

Going forward, Van Kirk noted that Schneider and CSX will continue to work together to find opportunities on service for new lanes they are not currently servicing. And as Schneider gains visibility to CSX’ infrastructure plans—in terms of creating new ramps and services—and builds it into its own sales and marketing plan to determine what its customers need and want and has value to them, such as CSX’ new intermodal terminal in Louisville, Ky., it will continue to work with CSX on those efforts.

In May, Schneider and BNSF Railway BNSF Railway inked a new, multi-year agreement in which BNSF will continue to serve as one of Schneider’s primary rail providers for intermodal service, according to Schneider officials. The relationship between Schneider and BNSF goes back to 2008, when BNSF first became Schneider’s primary Western rail provider. The company said that since that time the companies have worked in tandem to deliver “truck-like” reliability and low-cost service.

Despite the uneven nature of the economy, intermodal continues to see strong momentum, due in part to strong rail service, fluctuating diesel prices, and more “truck-like” quality. And through June 2, intermodal loadings—at 5,053,708 containers and trailers—are up 2.9 percent annually, according to the Association of American Railroads (AAR).

“We are seeing domestic intermodal strengths,” said Van Kirk, “and think it is a continuation of the shipper community being willing to utilize it. There is more interest by the rails and intermodal providers like Schneider working create more solutions and lanes to service intermodal. The rails have invested in their infrastructure and service levels to do that. Those types of increased capabilities are really driving the intermodal growth we are seeing, and I don’t see it stopping.”

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

Last week, the United States Department of Transportation took further steps to address various issues identified in recent train accidents involving crude oil and ethanol shipped by rail. The announcement was made by DOT with other DOT agencies, including the Federal Railroad Administration (FRA) and the Pipeline and Hazardous Materials Safety Administration (PHMSA).

Logistics Management Group News Editor Jeff Berman had an opportunity to interview Derek Leathers, President and Chief Operating Officer of Werner Enterprises, at this month's NASSTRAC Shippers Conference and Transportation Expo in Orlando. They discussed various aspects of the truckload market, including prices, fuel, and regulations.

During this webcast our presenters will apply the findings of the 23rd Annual Trends & Issues in Transportation and Logistics Study to the world of shipper-carrier decision making. They'll examine the primary aspects that will influence the future direction for shipper-carrier decision-making.

For February, the month for which most recent data is available, the SCI dropped to -1.0 from January’s 2.6, with FTR explaining that the short term positive impact from one-time adjustments for rapidly dropping diesel prices and the suspension of the 2013 motor carriers hours-of-service expires later this year.

Seasonally-adjusted (SA) for-hire truck tonnage in March was up 1.1 percent on the heels of a revised 2.8 percent (from 3.1 percent) February decline, with the SA index at 133.5 (2000=100). This is off 0.3 percent from the all-time high for the SA of 135.8 from January 2015 and is up 5 percent annually.

Article Topics

News · Intermodal · BNSF · Schneider National · All topics

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