World Trade - January 2009 - (Page 37)

HUB Group times, intermodal can deliver cost savings, strong service results, and reliable access to capacity for shippers. “The regional expansion of intermodal capabilities has made this mode a viable solution in lanes that many customers have not considered as traditional intermodal service lanes,” Van Kirk explains. A prime example of this is the CSX Intermodal network in the east, which has created a strong intermodal solution from both the Midwest and Northeast into Florida. This provides an attractive price point for shippers to service a high population state that typically has limited outbound transportation flows. This kind of solution presents a strong business cases for cost-conscious shippers. “We are also seeing progress in relieving the delays of moving cargo from West Coast ports to inland destinations,” adds Van Kirk. “Recently, increased use of double and triple tracks has been improving ﬂuidity and reliability of intermodal rail movements from the West Coast. As an example, the BNSF just recently opened a third set of tracks through the pass leading west from San Bernardino, California.” While intermodal requires some additional lead time over truck, that lag appears to be decreasing. “We are now seeing service in some corridors, such as California to the Southeast and back, that is becoming truck competitive on transit,” observes David Marsh, Hub Group chief marketing ofﬁcer. “We are also seeing resurgence in interest in intermodal service between the Midwest and East/Southeast and between the Northeast and the Southeast. All of these lanes offer customers reliable service and a cost advantage over truck.” Multiple advantages Regarding fuel costs, the experts point out that intermodal is three times more fuel efﬁcient than trucking and can routinely generate 10 to 15 percent savings over truck moves thanks to reduced line haul and fuel costs. When fuel prices are high, the savings can be around 20 to 25 percent or more, depending on proximity to rail ramps and length of haul. Intermodal fuel surcharges are typically half of what an over-the-road truckload fuel surcharge would be, which can result in savings of approximately $500 per load compared to truckload. Where the environment is concerned, freight shipped on one intermodal train would take upwards of 200 to 280 trucks to haul. Plus intermodal emits less greenhouse gas emissions into the environment. This is a growing concern for businesses that have adopted environmental-friendly policies. In fact, an increasing number of companies like Frito-Lay, Inc. have joined SmartWay™, a voluntary partnership between the Environmental Protection Agency (EPA) and the freight industry, to reduce fuel consumption as well as greenhouse gases and other air emissions. “The goal is to improve the fuel efficiency of your truckers,” Pacer’s Brashares states. “Companies are always looking at ways to reduce cost and do multi-stops over the WWW.WORLDTRADEMAG.COM 37 http://WWW.WORLDTRADEMAG.COM

Table of Contents Feed for the Digital Edition of World Trade - January 2009

World Trade - January 2009 Contents Supply Chain Finance Conference: The Right Stuff at the Right Time! Is the Dollar's 'Exorbitant Privelege' as the Global Standard at Risk? Supply Chain Watch Tradewinds The Rise of the 4PL An Evolving Tech Backbone Makes 4PL Service More Effective The Changing Landscape of U.S. Railroads Intermodal Grows Up Port of Hamburg Grows as Distribution Point to Eastern Europe Outsourcing Without Fear Measuring the Carbon Footprint

World Trade - January 2009

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