Schneider and CSX Agree on New Rail Contract

Truckload carrier Schneider National and Class I railroad carrier CSX have reached a new multiyear agreement in which CSX will continue to be one of Schneider’s main rail providers, continuing to position Schneider’s ability to serve the Eastern United States for intermodal services.

The relationship between Schneider and CSX goes back to 2008, when CSX became Schneider’s primary Eastern rail provider, and in 2012 they announced a multi-year agreement for CSX to continue to serve as one of Schneider’s primary rail providers.

Schneider officials said that since they inked that deal in 2008, they have collaborated to deliver what they call “truck-like” service for shippers.

And they added that this pairing provides Schneider’s customers with “capacity and operational interfaces that are designed to increase accessibility and efficiency of all rail moves,” along with “capital investments that CSX has made in projects such as the Northwest Ohio Intermodal Terminal [that] have improved its infrastructure and facilitated expended service offerings to the most Eastern origins and destinations.”

Schneider officials said in an S-1 filing with the United States Securities and Exchange Commission that it is one of the largest intermodal providers in North America by revenue and are well-positioned for future growth in intermodal freight through its nationwide network and company container model.

“Our long-standing railroad relationships with BNSF Railway, CSX Transportation, Canadian National Railway, Kansas City Southern Railway and other regional rail carriers, such as Florida East Coast Railway, provide rail access nationwide,” it said.

“Our customers value our intermodal network over IMCs due to our consistent access to capacity through our company assets and high-quality drayage services that provide a larger geographic reach around intermodal terminals. We are in the process of converting from our rented chassis model to a company-owned chassis model.”

“This conversion will lower our all-in chassis operating costs, improve service reliability, as well as increase driver efficiency and satisfaction, by increasing our control over the chassis operations of our intermodal business. We expect to complete our conversion to a company-owned chassis fleet by December 2017. We believe that our balanced network and large base of company assets provide a significant competitive advantage that would be difficult for other carriers to replicate.”

CSX believes intermodal is a critical solution for supply chain optimization as it provides shippers with access to scalable capacity and sustainable savings,

“There is significant opportunity to optimize modal selection and convert freight from highway to rail in the Eastern U.S.,” said Dean Piacente, vice president-intermodal for CSX Transportation, in a statement.

“CSX continues to invest in the intermodal growth opportunity, and we are excited to extend our relationship with Schneider as they truly are a premier intermodal provider. CSX and Schneider share a strong commitment to safety and customer service and to enhancing supply chain solutions for shippers. Renewing our relationship with Schneider is one of the many driving forces behind our Service Excellence initiative within the CSX of Tomorrow strategy.”

While volume trends of the tracks and highways remains somewhat uneven, domestic intermodal remains fairly consistent.

The gains in domestic intermodal reflect, in some ways, a continuation of the shipper community being willing to utilize it.

What’s more, there is more interest by the rails and intermodal providers like Schneider working to create more solutions and lanes to service intermodal.

And the rails have invested in their infrastructure and service levels to do that, with those types of increased capabilities driving intermodal growth levels.

Related: CSXT Intermodal Now Serving 13 More Destinations from Memphis

Intermodal Rail White Papers & Guides

2017 Supply Chain Trends
A pool of over 150 supply chain professionals were asked about their transportation plans, challenges and opportunities for growth in 2017, the results provide insight into a wide range of issues and shed light on what supply chain managers plan to focus on in the coming year. Download Now!

---

Your Guide to Upcoming Trucking Regulations
As increased over-the-road regulations are set to go into effect in 2017, supply chain managers should take steps to prepare today in order to protect their organizations from negative impact. Download Now!

---

The X’s and O’s of Intermodal Rail in Supply Chain Management
As the coach of your supply chain, you have the opportunity to turn to your playbook and choose from multiple transportation modes to maximize the efficiency of your freight network. Download Now!

---

The Intermodal Rail Bracketology Guide
Learn how to identify sub-optimal full-truckload freight that is vulnerable to capacity constraints if and when a supply chain disruption occurs. Download Now!

---

Practical Steps for Highway to Intermodal Rail
Learn how to increase access to capacity, reduce transportation costs and mitigate exposure to future trucking regulations. Download Now!

---

Transportation Management Systems & Intermodal Rail
An interactive, personalized guide to learn more about the combined benefits of a TMS and intermodal rail. Download Now!

---

Highway to Intermodal Rail (H2R) Conversions Deliver Bottom Line Results
CSX Transportation has found that 96% of shippers have sub-optimized freight in their network. Does your organization? Find out and learn how to address sub-optimized freight in your supply chain. Download Now!