John Petrie’s Post

Larry Gross, President, Gross Transportation Consulting said intermodal freight had been doing quite well until the pandemic when congestion and rail service problems caused a switch over to trucking. The result is a considerable market that the railroads need to win back: “We would've been handling another 1.6 million domestic loads per year and about $4 billion of additional revenue … So, my message here is that even though we spend a lot of time thinking about what the overall macro environment (is) … this is the biggest opportunity out there because we control our competitiveness with highway. What it's going to take is some pretty aggressive action for us …to gain back the share that we lost. But there is a giant opportunity out there to grow the business.” https://lnkd.in/gNCw2iDQ

Oak Management, LLC, a prominent leader in the steel trucking and logistics  industry, is thrilled to announce a groundbreaking partnership with both East Chicago  Transload, LLC and East Chicago Rail Terminal, LLC. This strategic collaboration  provides single-stop solutions and pricing in the local, regional, and national  marketplace, opening up new avenues for efficient cost-effective, best value-no worry  multi-modal transportation and logistics services.    Oak Management, LLC, known for their nearly ninety (90) years of flatbed  trucking experience and innovative customer-centric approach, has identified a growing  need for enhanced flatbed trucking and rail services across industries. With an  extensive network of carriers and a diverse fleet, the company is well-equipped to tackle  complex logistics challenges.   East Chicago Rail Terminal, LLC and East Chicago Transload, LLC (ERRT/ECT)  are sister companies that have systematically changed the shortline railroad and  transloading marketplace in terms of customer value, timeliness, and providing effective  customer solutions. ERRT has direct interchanges to all Class 1 railroads (BNSF, CSX,  NS, UP, CN, CPKC) as well as IHB and IAIS, reducing railcar transit times compared to  competing Chicagoland transloads and shortline railroads. The location’s close  proximity to IN-912, I-65, I-94, I-90, I-80, US-12/US-20, and favorable trucking weight  limits (compared to Illinois) making it a “no-brainer” for solution-driven customers.   "We are thrilled to partner with ERRT/ECT," said Mr. Kit Bryan, VP Operations at  Oak Management, LLC. "This collaboration represents a momentous milestone in our  combined mission to provide superior end-to-end supply chain solutions. By combining  Oak Management's expertise in flatbed trucking with ERRT/ECT’s exceptional rail and  transload capabilities and location, we confidently offer seamless, environmentally  friendly, and cost-effective supply chain solutions”, said Mr. Alex Engelke, General  Manager of ERRT/ECT. 1    With this partnership, customers find a comprehensive suite of  transportation solutions that optimize supply chain efficiency, reduce transit times, and  decrease overall transportation costs. This alliance marks an exciting step forward in  the transportation industry, aligning with the vision of sustainable and reliable logistics  services. Both companies are committed to maintaining the highest standards of ethics,  safety, performance, and professionalism, further enhancing their reputations as  industry leaders.      For East Chicago Rail Terminal Railroad, LLC / East Chicago Transload, LLC  Contact: Alex Engelke, General Manager   Office: 219-804-0671   Cell: 630-664-7754   Email: alex@eastchicagorail.com  www.eastchicagorail.com      For Oak Management LLC:  Contact: Danny Gurgon, Carrier Operations Manager   Office: 219-787-8868 x 155   Cell: 219-615-7032   Email: dan@truckinit.com   www.oakmgtllc.com

Nation's top truckload freight carrier, Knight-Swift Transportation, is looking to acquire a less-than-truckload (LTL) carrier. Why? The LTL business tends to have higher operating margins. See The Wall Street Journal article to learn more: https://lnkd.in/gVtfKSNu #trucking #freight #transportation #ltl #truckload #knightswift

When you treat intermodal like the carload network you get the resulting feedback from shippers, et al. IM is a different animal. It’s complex utilizing various modes and channels, and requires constant attention with ever evolving solutions to showcase truck like service. Railroads don’t like complexity and this stems from the inelasticity of rail networks and operations, with cost reductions generally driving decisions to keep it simple. However it’s these decisions that cause railroads to stagnate inturn hindering growth.

This is a terrific collaboration. Client partnerships are the approach I love to promote. 3PLs and Brokers often have a need to expand their service offerings to include an Intermodal component. This is going to be a long successful relationship with a great group of people #3pl #logistics #brokerage #intermodal #supplychain #supplychainsolutions #railroad

This is good news in the effort to provide a competitive rail option to trucking from South Florida (Atlantic side) to the Midwest and Midsouth. Now the Intermodal Savings Index shows that these lanes tend to be very truck competitive on rates, so intermodal providers might have to deal on price to get business. There is also a need to get more bi-directional business on these lanes.

Ready to buy a long-distance freight trucking company? Here are key steps to assess its value: ➖ Income Approach: Evaluate the company's financials, including its cash flow and profits, to project future earnings. This helps in determining the business's present value. ➖ Asset-Based Approach: Examine the company's tangible assets, such as trucks, property, and equipment, and subtract any liabilities. This gives a clear snapshot of its net worth. ➖ Market Approach: Compare the company to similar businesses recently sold. This helps in benchmarking its value against industry standards. ➖ Operational Efficiency: Review the company's routing, scheduling, and fleet management to gauge its profitability and potential for optimization. ➖ Customer Base: Analyze the stability and diversity of the company's clients, ensuring predictable revenue streams. These steps provide a comprehensive assessment of the business's value, making your purchase decision more informed. #TruckingCompany #BusinessValuation #LogisticsBusiness #FreightIndustry #TransportBusiness

Norfolk Southern and Florida East Coast Railway (FEC) are expanding their domestic intermodal service offering for customers that have business in Florida. The expanded intermodal service consists of two components. To provide customers with more options in Florida, NS (NYSE: NSC) will include FEC’s intermodal terminals in Fort Pierce and Fort Lauderdale into NS’ service network, which will complement existing service at FEC terminals in Titusville and Miami. NS and FEC will also use a steel wheel interchange to FEC at Jacksonville, which will expand customers’ access to markets in Chicago; Cincinnati; Harrisburg, Pennsylvania; St. Louis and Kansas City, Missouri; Memphis, Tennessee; and Lathrop and Southern California, according to a Wednesday news release. The expanded service will start next Monday. The two say these expanded offerings will provide customers with an opportunity to land traffic closer to facilities in the major Florida markets and reduce drayage. “Florida East Coast Railway is ready to reach additional markets on the East and West Coasts of the United States by furthering its strong relationship with Norfolk Southern,” Luis Hernández, FEC vice president for intermodal, said in the release. “It is a good time to work together to enhance the advantages that FEC offers to access strategic cities in the U.S.” NS Chief Marketing Officer Ed Elkins added, “As part of our customer-centric and operations-driven approach, we are constantly looking for opportunities to drive value and help our customers efficiently reach new markets.” Wednesday’s announcement follows another one by NS earlier this month in which the rail carrier said it was partnering with Canadian railway CN (NYSE: CNI) to launch a domestic intermodal service that they say will allow customers in CN-served markets in Canada and the Upper Midwest to access markets in the U.S. Southeast. The service, which will also start next Monday, will utilize steel-wheel interchanges in Detroit and Chicago and enable CN customers to gain access to markets in Atlanta and Kansas City. The two Class I railroads said the new service aims to operate “like a single-line intermodal product” and convert shippers from truck to long-haul rail. NS’ two expanded intermodal offerings come at a time when its peers are also seeking to beef up their intermodal offerings, especially following the merger between Canadian Pacific and Kansas City Southern. In early September, NS competitor CSX (NASDAQ: CSX) said it was launching an intermodal service with the Georgia Ports Authority connecting the Port of Savannah with CSX’s terminal in Rocky Mount, North Carolina. Days later, Union Pacific (NYSE: UNP) and CN said they shaved off one day of transit time for the Falcon Premium intermodal service product that they operate with Ferromex.

After a long trough of sluggish performance, US intermodal traffic is growing, and the market points to larger gains ahead. This month Union Pacific Railroad (UP) opened a new route between Chicago and southern California, featuring transits of 4-6 days between its Inland Empire terminal in Fontana and Northlake, targeting intermodal traffic that would otherwise move by truck. In its announcement, the railway stressed the benefit of lower drayage costs for shippers at both ends of the route. In a separate move, UP is adding on-dock rail service at the port of Houston, which has seen double-digit gains in box traffic in recent years. According to numbers from the Association of American Railroads, intermodal traffic is up in the US, with volumes this year, to 6 April, up 9% over the first 14 weeks of 2023.

Private trucking fleets have emerged with a greater share of freight, a sharper presence in the supply chain, and a focus on management disciplines needed to drive results and solidify justification as a corporate investment. “The state of the private fleet market is strong and getting stronger,” says Gary Petty, president and CEO of the National Private Truck Council (NPTC). A look inside what's driving the growth in private trucking.