Intermodal seen closing gap
with trucking
Domestic intermodal rail service is now service competitive
in shorter-haul traffic lanes traditionally dominated by
truckload carriers, and after more than three decades, is
finally being regarded by shippers as a viable transport
option, according to a long-time intermodal consultant.
Lee A. Clair, a partner at management consultancy
Norbridge Inc., said domestic intermodal service can compete with truckers on stages as short as 500 to 550 miles, a
distance usually covered by a solo truck driver in one day.
Clair appeared on a Sept. 16 webcast sponsored by the
investment firm Stifel, Nicolaus & Co., which transcribed
Clair’s remarks.
Based on total freight spending, rail-based domestic and
international intermodal represents only 3. 8 percent of the
total U.S. market, Clair said. However, intermodal is now
the largest class of traffic moving on North American Class
I railroads, based on units moved, Clair said. The consultant
defined units as containers, trailers, or carloads.
Domestic intermodal has grown to become nearly as
large as the international segment, which has traditionally
been most closely associated with intermodal service, Clair
said.
Shippers looking to reduce their fuel spend and their carbon emissions are increasingly eyeing intermodal as a more
cost-effective alternative to truckload carriers for domestic
deliveries. Railroads, in turn, are investing more marketing
dollars and operational resources into strengthening their
alliances
Avis Budget Group Inc. and I.D. Systems Inc. have executed an agreement to deploy I.D. Systems’ proprietary
wireless vehicle management system. … Penske will be
providing LG Electronics in Brazil with expanded warehouse and dedicated distribution services. … Germany-based waterflow control provider Talis Group is using
Management Dynamics’ Export On-Demand solution for
restricted party screening. Talis Group will use the technology as a foundation for centralizing and automating
all of its subsidiaries’ global export compliance processes.
… Kane Is Able, a third-party logistics service provider for
the consumer packaged goods industry, has selected solutions from Manhattan Associates’ SCALE product suite to
support its Scranton, Pa., business campus. In addition,
Sinopharm Group’s distribution center in Hunan, China,
has upgraded its supply chain technology platform with
the latest version of Manhattan Associates’ Warehouse
ground breakers
REB Storage Systems International, a provider of
material handling solutions, is opening a new facility
in Southern California to provide local support to its
West Coast customers. … Kerry Logistics has broken
ground on an addition to its Chongqing Logistics
Center. The announcement comes just months after
the completion of the first phase of the building. …
Hegele Logistics LLC, a logistics service provider specializing in high-tech products, has opened a logistics
center in Wood Dale,
Ill. Hegele will
expand its refurbishing and spare parts
business for medical
equipment at the new facility. … The Adidas Group
plans to open a distribution center in
Niedersachsenpark, Germany, in the first half of 2013.
THE ADIDAS GROUP
domestic intermodal businesses.
The trend is a break from the past, when U.S. intermodal
service was considered an extension of international service
that involved a prior or subsequent ocean freight movement. For railroads to compete strongly in the domestic
arena, however, they must deliver consistent and reliable
service comparable to truckload operations at shorter distances. A typical intermodal move stretches anywhere from
Management system. … Weber Logistics has partnered
with candy maker Storck to distribute more than 1 million cases of brands such as Riesen, Werthers, Mamba,
Merci, and Toffifay throughout the Western United
States. … VistaLogix Global LLC has been named a global reseller of the IBM Sterling Transportation
Management System (IBM TMS). … Atkins Nutritionals
Inc. has implemented a software-as-a-service version of
Wright Business Solutions’ warehouse management software to improve productivity, visibility, and compliance
labeling at its Romeoville, Ill., DC. … Men’s clothier Alton
Lane has gone live with Quiet Logistics’ robotic e-commerce fulfillment services. ... Excel Shipping Ltd., a UK-based NVOCC that provides services to the
Mediterranean, Middle East, Africa, India, and other
regions, has joined the Inttra network. Inttra is a provider
of e-commerce solutions for the ocean freight industry.
