Mark Young, President, Integra Logistics Services, LLC

Report
Transportation & Logistics
Council Annual Conference
2013
Corporate Headquarters:
Houston, TX
Operating Offices:
Chicago, IL
Dallas, TX
Los Angeles, CA
Houston, TX
Rutherford, NJ
St. Louis, MO
Tampa, FL
Utilize Integra’s experienced
personnel and its proprietary web
based technology systems to deliver
an unparalleled customer service
experience to our clients and their
customers
 Intermodal
Services
 Highway Services
 Supply Chain Solutions
 Warehousing Solutions
 Technology Systems
 Load Design & Product Integrity
Solutions
 Large
network of flexible capacity
 Supply Chain strategy expertise
and best practices
 Combine advantages of single
source with flexibility of large
provider base
 Technology
Pope’s inauguration
in St. Peters Square
in Rome. A very
telling illustration
as to our
advancement in
technology, just
over the course of 8
years.
A seamless form of transportation via two or
more modes, with authority under a single bill
of lading.
Union Pacific Railroad (UPRR)
 Burlington Northern Santa Fe (BNSF)
 CSX
 Norfolk Southern (NS)
 Canadian National (CN)
 Canadian Pacific (CP)
 Kansas City Southern (KCS)
 Florida East Coast (FEC)
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Containers (COFC)

Trailers (TOFC)

Refrigerated Trailers/Containers
 20’
 40’
 45’
 53’
 28’
 53’
 20’
 40’
 45’
 53’
Bulk ISO Tanks
 Rail Decks – 53’ flatbed

Private/Railroad Container Assets
Private
Railroad
Owned Dry
Owned Dry
Containers
Containers
52%
48%

North American
Domestic Containers
~175,000
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Highway Congestion is
bad and getting worse
Today
Equipment and driver
shortages make service
performance increasingly
erratic
Fuel increases introduce
sudden spikes in freight
rates
Hours of service changes
2020
The Federal Motor Carrier Safety Administration
(“FMCSA”) published final driver hours of service rules
in December 2011, to be effective July 1, 2013. Among
the changes are more restrictive requirements covering
driver use of the 34-hour restart rule and a new
mandatory 30-minute rest period after 8 hours on
duty. The trucking industry association and consumer
advocate groups both appealed these changes before
the court in March 2013. The court has not yet issued a
ruling. Assuming the rules are adopted without change,
we currently believe the new rules will result in a
decrease in truck productivity and could tighten up
supply relative to demand in the freight market.
Growth was the name of the game in
intermodal for 2012. Most providers
saw shippers shift their capacity
strategy from over- the-road to
intermodal to eliminate some of the
pressures of the long haul trucking
industry such as fuel cost and driver
capacity.
As the railroads continue to improve
reliability in their network, intermodal
becomes a much more viable option
even with longer transit times. Shippers
are adapting and taking advantage by
just planning out longer lead times.
Dray and railroad costs continue to
push rates higher, but at a much more
tempered pace than the over the road
carriers. Market analysts anticipate the
same in 2013 with rates climbing
about 3-5 percent overall.
The worsening driver shortage will
continue to impact capacity and apply
strong upward pressure on rates in 2013
regardless of the direction of the
economy. Market analysts suggest in
2013 truckload rates will climb about 68 percent overall.
Simply stated – it is widely accepted that
the driver shortage is a long-term trend
in the trucking industry that will be
minimally impacted by the monthly
swings in the U.S. economy. The most
recent survey of for-hire trucking
executives by Randall Reilly Market Place
Survey bears this point out. In February
of 2011, driver availability became the
area of greatest concern for trucking
executives and has remained the top
concern of executives since by a wide
margin in this survey.
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Transportation line haul savings vs. OTR
Lower FSC vs. OTR based on mileage
Capacity
Speed and reliability has and continues to
improve
Length of haul that works has been reduced
High value cargo services available
Claims are low
Green Friendly
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Contracts with all class one, smaller regional,
Mexico, & Canadian railroads.
Multiple resources for capacity
The ISP manages drop pools and equipment
Creating synergies within ISP’s network
Optimizing shippers network
The ISP arranges all legs of the move with
service providers including origin drayage,
rail linehaul, and destination drayage
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The ISP monitors shipments and handles all
service issues directly with service providers
to ensure on-time deliveries.
Customer asset reduction through
outsourcing.
Takes ownership of the claims process
Communications
Employ External Expertise
Few mid sized manufacturers have the time and internal
expertise to effectively manage day-to-day delivery operations.
Most understand this reality and readily look for external
expertise.
Transportation Strategies
Rank
Use capable service providers
1
Enhance transportation processes
2
Adopt transportation technology
Collaborate with major customers
3*
3*
Collaborative Distribution
According to mid-sized manufacturers, their quest for greater
collaboration is enhanced by 3PL providers with strong
customer relationships.
3PL Capabilities
Rank
Customer relationship management
1
Flexible transportation capacity
2
Data capture and analysis
3
Performance metrics compliance
4
Logistics network optimization
5
Integra Logistics Services, Inc.
Corporate Offices
4760 World Houston Parkway #180
Houston, TX 77032
281-227-8888
www.intlog.com

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