Hub Group president
vows aggressive push
into eastern U.S.
Hub Group Inc., the nation’s largest intermodal
marketing company, plans to aggressively push
into the densely populated eastern U.S. market
in an effort to grow its share of the shorter-haul
intermodal category, the company’s president
and COO said.
Speaking at the Stifel, Nicolaus & Co. transportation and logistics conference in Key
Biscayne, Fla., Mark A. Yeager said Hub’s “local
east” traffic grew 24 percent in the fourth quarter of 2010 and now accounts for 36 percent of
Hub’s total intermodal volume, compared with
24 percent four years ago. Hub’s 11-city network stretches as far west as Kansas City, Mo.,
as far north and east as Boston and Elizabeth,
N.J., and as far south as Jacksonville, Fla.
Yeager said shippers that in the past wouldn’t
have considered intermodal service for moves
of under 550 miles are now viewing it as a more
attractive option due to higher diesel prices,
increased road congestion, and more reliable
service on the part of railroads and the local
drayage drivers who move traffic to and from
intermodal ramps. With more advance planning, shippers may find ways to better utilize
the intermodal network for shorter hauls, said
Yeager, who is also vice chairman of Downers
Grove, Ill.-based Hub.
The reliability of rail service will be the key
factor in making short-haul intermodal a sustainable alternative to over-the-road trucking,
Yeager said. In the past, rail service consistency
declined as intermodal volumes spiked, Yeager
said. “That isn’t the case today,” he said. “As long
as rail service holds in there, I don’t see the
trend [toward migrating to shorter-haul intermodal service] reversing itself,” he added.
Though rail intermodal service has been
gaining share in the long-haul (550 mile-plus)
market from trucks, intermodal still controls
less than 8 percent of the domestic long-haul
market for dry van freight, Yeager said, citing
data from multiple sources in his presentation.
Hub and J.B. Hunt Transportation Services
Inc., the transportation giant that is also a
major intermodal marketing company, controlled about 39 percent of the $7 billion U.S.
intermodal market as of the end of 2009.
accolades
; Ridin’ high. Cisco has named Ryder System its Supplier of
the Year. The award acknowledges Ryder’s delivery performance, quality, inventory accuracy, and overall account management. Among other services, Ryder operates a Global
Distribution Center (GDC) for Cisco in Roanoke, Texas.
; Growing reputation. Trucking and logistics service
provider A. Duie Pyle has announced that its Westfield,
Mass., warehouse has received the 2010 Outstanding
Warehouse Service Excellence Award from Scotts Miracle-Gro Co. The facility earned the award by exceeding expectations in 11 of 15 performance categories, ranging from fulfillment accuracy and delivery to risk management and environmental practices. In addition, Mike Cortis, quality assurance coordinator for the Westfield facility, was recognized
by Scotts with the Individual Service Excellence Award.
; Certifiable. Whirlpool Corp.’s regional DC in Perris, Calif.,
which is operated by Penske Logistics, has earned certification and a top rating of 93. 6 percent from the Warehousing
Education and Research Council (WERC). The certification
and top rating indicate that the 1. 7 million-square-foot
facility follows industry best practices, as determined via a
facility inspection and process assessment by an independent auditor.
; Doubling up. Damco has received two service awards from
the British International Freight Association. The company
was honored with the 2010 Supply Chain Management
Award as well as the 2010 Staff Development Award.
; Environmentally sound. Mitsui O.S.K. Lines Ltd. (MOL) has
been named to the list of Global 100 Most Sustainable
Corporations by the Canadian magazine Corporate Knights.
MOL earned the No. 32 spot on the list, the highest ranking
of any company in the shipping industry.
; Powered up. The Propane Education & Research Council
(PERC) has received the World LP Gas Association’s award
for distinguished service in the research and development
of propane technology. PERC collaborates with government
agencies, equipment manufacturers, safety and training
experts, and others to find innovative ways to use propane
and train the people who handle it. Among other uses,
propane serves as a fuel source for warehouse vehicles.
; Cheers. SBS Worldwide has received the Ocean Freight
Award from the British International Freight Association.
The global freight forwarder was honored for its efforts to
encourage customers to cut down on the number of containers they ship.
