Schneider intermodal process and network priorities

An Interview with Jim Filter, SVP, Intermodal Services 

In an interview with AJOT at the IANA Intermodal Conference in Long Beach CA, Jim Filter, Schneider’s SVP of Intermodal Services outlined Schneider’s operational and network expansion priorities in light of some current industry issues affecting drayage and intermodal rail. Mr. Filter called out the following current topics as just some that may affect this business sector:

• Uncertainty over the effect of the “AB5” legislation just passed last week by the California Senate and now headed to the state assembly, that if enacted will make it harder for employers to label workers as independent contractors. This may have a further effect on already tight truck driver supply, as the industry draws many drivers attracted by an independent lifestyle.
  
• IMO 2020 implementation, which would require the marine sector to reduce Sulphur emissions by 80% as of January 1, 2020. Mr. Filter speculates that this requirement may have the effect of actually creating more demand for transpacific shipping via West Coast vs. East Coast ports and potentially resulting in more transloading and domestic intermodal via the West Coast.
  
• Stricter requirements for drug and alcohol tests, especially the requirement for hair follicle testing designed to weed out at-risk drivers
  
• The continuing tightening effect on driver supply resulting from the requirement for Electronic Logging Devices (ELDs).
  

With these developments, as just a few potentially impacting the domestic intermodal industry, Mr. Filter sees Schneider as being well positioned to meet all challenges. Schneider’s policy is one of continuous progress toward a fully asset-owned business model, including company-owned chassis, trucks, trailers and company-employed drivers. Schneider Intermodal hopes to be in a premium position to attract the best-qualified drivers by offering competitive employment conditions and compensation. With the increased focus on drayage to a growing network of intermodal rail ramps within a typical trucking radius of 50 to 100 miles, this not only creates more efficient transport logistics, but also allows Schneider to offer a tighter supply of truckers the ability to get home to their families at night. Some examples of Schneider’s intermodal lane expansions include:

• Barstow CA to Chicago via BNSF; taking capacity pressure off San Bernardino, and also creating the ability to reach the Las Vegas drayage market. With plenty of land availability around Barstow there is also the potential to develop more warehousing and distribution space to feed the Barstow intermodal facility.
  
• Via CSX and CN from Kearney NJ to Toronto and Montreal
  
• North-South Intermodal via BNSF-KCS between the US and Mexico, and within Mexico itself. According to Mr. Filter intermodal rail market penetration is only between 5-7%, compared to approximately 50% East – West in the US. Based on Mr. Filter’s prior experience as head of Schneider Mexico, he sees great potential in growing this market. In particular, intermodal rail into Mexico is a more secure form of transport compared to trucking between the US and Mexico, with containers locked down and continually moving through to interior ramps.
  

Although the intermodal transport industry faces challenges and uncertainties, it appears that Schneider Intermodal is thinking and acting strategically to achieve success.