Intermodal Grows Up

Click title for story link. While fuel prices are now on the wane, the stings of exceedingly high gasoline costs, and now the global recession, are factors weighing heavily on shippers as they consider transportation options. Most contend lower fuel prices will be short lived, and no one can predict how long the economy will remain in the doldrums. But one fact is certain: Business is off, meaning shipment volumes are down, and all efforts must be made to hold onto a respectable profit margin. Add to this the growing trend to “think and act green”—a practice that, for many companies, can add expense because it means introducing new processes. Thankfully for many, where transportation is concerned there are economical options. So, as a way to combat all the above mentioned ‘negatives’ out there, many shippers are now considering intermodal.“Today, customers are increasingly more apt to fit into the intermodal mix,” comments Jeffrey R. Brashares, president of Logistics Services Group, Pacer Logistics Inc. But so far, he says it’s the large companies, particularly retailers and importers of electronics, which are using the mode. The Bon-Ton Stores, Inc., one of the country’s largest regional departments store chains, for example, is using intermodal as a logistics mode for the first time. “With the cost of fuel on the rise, we had to rethink our supply chain,” says Robert Hook, divisional vice president, transportation. “After a successful trial run, we implemented Schneider Intermodal into our day-to-day transportation plan and have shifted a significant amount of freight to rail.”