Posts Tagged ‘Schneider intermodal’

Schneider to Double Intermodal Use

March 6, 2021

A string of pumpkin-colored Schneider National containers brings  up the rear of the Q015 near Kent on CSX.

Schneider National plans to double its intermodal operations by 2020.

Known for its orange-colored trailers and containers, the intermodal, logistics, and trucking firm said the move to increased intermodal operations is part of an effort to reduce carbon emissions by an additional 700 million pounds per year.

The company said it is committed to cutting carbon emissions by 7.5 percent per mile by 2025 and 60 percent per mile by 2035, and to achieve net zero status for all company-owned facilities by 2035.

Some of its truck fleet will be switched to electric power as part of the initiative.

Headquartered in Green Bay Wisconsin, Schneider recently observed its 30th anniversary of intermodal operations.

It maintains 45 ramps, 22,300 containers, and 20,600 intermodal chassis.

IANA Reports Intermodal Fell 3.7% in 3rd Quarter

November 5, 2019

Intermodal traffic sagged 3.7 percent to 4,662,468 units during the third quarter compared with the third quarter of 2018, the Intemodal Association of North America reported.

International shipments (2,450,493) declined 0.8 percent in the quarter, while domestic container (1,915,342) and trailer (296,633) volume fell 4.9 percent and 17.6 percent, respectively.

“Looser trucking capacity, continuing uncertainty about Chinese tariffs, and tough comparisons to 2018 volumes are the primary factors driving intermodal traffic,” said IANA President and CEO Joni Casey in a news release. “The rest of the year is projected to be flat, but a turnaround is anticipated by Q2 of next year.”

The best performing trade corridor during the third quarter of 2019 was southeast-southwest, which grew by 3.3 percent.

Other corridors posting gains included the intra-Southeast and Trans-Canada corridors, which increased by 1.8 percent and 1.3 percent, respectively.

Seeing losses were Midwest-Northwest, down 2.1 percent; Southwest-Midwest, down 4.1 percent; South Central-Southwest, down 6.6 percent; and Northeast-Midwest, down 7.3 percent.

IANA officials said intermodal marketing companies’ total volume fell 7.6 percent in the third quarter of 2019 compared with the same period in 2018.

Both intermodal and highway loads were down for only the third time since the Great Recession of 2008, IANA said.

Underscoring the decline in intermodal, two intermodal companies said last week that they saw revenue decline in the third quarter.

The Hub Group cited lessened demand, increased competition, and closed rail lanes for a 9 percent fall in third quarter intermodal volume.

It said intermodal revenue slipped by 7 percent to $539 million at the intermodal, trucking, and third-party logistics company.

“Intermodal has in fact lost some share, and it’s not just in the 750- to 1,000-mile type of line hauls; it’s even up in the 2,000 [-mile range],“ said CEO Dave Yeager during an investor earnings call.’

Yeager said truckers are doing anything to keep their tractors and drivers moving, including charging rates that close to or equal to intermodal prices, and that this is not a long-term strategy by the trucking industry against intermodal.

Hub’s chief financial officer, Terry Pizzuto, said the heaviest truck competition is in the East.

Although Hub’s 9 percent decline in volume was greater than the industry average of 7 percent, Pizzuto said that was due to the bankruptcy of a customer and Hub management doesn’t think it has lost “a whole lot of market share.”

Hub’s regional intermodal volumes declined by 11 percent in the East and West, while transcontinental volume was down 3 percent.

The company said the closing of some railroad service lanes had disrupted intermodal operations, particularly in the East, and Hub is hoping that railroads will reconsider those closing decisions.

Overall Hub Group third-quarter net income was $26.1 million, up from $25.8 million from third quarter 2018.  Quarterly revenues of $913 million were down 2 percent.

At Schneider National, intermodal net income was down 30 percent which company officials attributed to reduced volumes and increased rail costs.

Revenue was down 2 percent and Schneider’s intermodal operating ratio increased to 89.9, up from 85.8 for the quarter.

CEO Mark Rourke during an earnings call said rail transportation costs reflect, over time, the market.

“So we would expect we are perhaps at the high end, at the peak side of that presently, and that as market rates have rationalized a bit over the last couple of quarters that we would start to see some relief on that end of the income statement,” Rourke said.

Schneider chief financial officer Steve Bruffett said that if rail pricing doesn’t drop, Schnieder can maintain its intermodal margins by “process and efficiency improvement objectives that we’re going to go after in 2020.”

Bruffett said that during September Schneider had intermodal margins of 10 percent to 12 percent, which were down from 12 percent  to 13 percent in 2018.

Rourke expressed optimism that lost traffic will return to intermodal due to tightening truck capacity.

Schneider intermodal revenues for the third quarter were $249.2 million, down from $254.4 million from the third quarter of 2018, while net income was $25.1 million, down from $36.1 million.

Schneider Begins Service to CSX Ramp in Indianapolis

June 27, 2019

Schneider has announced that it is offering intermodal service to Cincinnati, central and southern Indiana, and Louisville, Kentucky, via a CSX ramp in Indianapolis.

In a news release, Schneider said that it will operate eastbound shipments from Indianapolis to North Bergen, New Jersey, and Worcester, Massachusetts, six days a week.

Westbound shipments will operate from North Bergen to Indianapolis.

Schneider said the new service will offer a more cost-competitive transportation option to eastern U.S. markets by offering two- and three-day transit times that are competitive with truckload transit times.

“This is a new option for shippers to reliably move loads at transit times competitive to truckload,” said Jim Filter, senior vice president and general manager of Schneider’s intermodal division in a statement. “We’re also confident this will provide cost-competitive intermodal service to the region, as eastbound freight will not have to be drayed to Chicago.”

Schneider offers intermodal service to more than 40 ramps in North America.