United Cargo and Forward Air sign logistics agreement

In a deal announced yesterday, United Continental Holdings signed a new logistics agreement between United Cargo, the cargo division formed by the merger of United and Continental Airlines, and Forward Air, Inc.

Under the terms of this multi-year agreement, Forward Air is now the primary provider of expedited ground transportation service in the U.S. for United Cargo.

Subsidiary Continental Cargo and subsidiary United Cargo both had extensive trucking networks to support their transport of cargo by air. Aligning these two networks, and contracting with Forward Air as primary provider of trucking service in the U.S., provides economies of scale for shippers, said the company.

These benefits include additional destinations, increased frequency, optimized capacity and access to Forward Air’s 24/7 logistics support team and modern shipment tracking tools.

In an interview with LM, Robbie Anderson, President of United Cargo noted that for the past five years, Forward Air has provided “exemplary service.”

Bruce A. Campbell, President of Forward Air, said his company is looking forward to serving United’s entire U.S. expedited ground transportation market.