Schneider began transferring some business to UP last year in anticipation of the full move on Jan. 1.
“Schneider’s intermodal operations on Union Pacific transitioned seamlessly as the companies collaborated closely over the last year to align operations, technology, sales and customer teams in preparation for the service change,” Schneider said in a news release. “There was no disruption to Schneider’s customers during the transition. The move is also a pivotal step in the carrier’s plans to double its intermodal size by 2030 and continue to reduce its carbon footprint.”
Schneider says it can offer service to more places thanks to UP’s partnership with CSX Transportation in the East.
“We believe the move in the West means we can offer our customers a distinct differentiator in the market,” Jim Filter, Schneider group president of transportation and logistics, said in a statement. “The combination of more coast-to-coast connections and being the first fully asset-based carrier with company drivers, company-owned containers, and company-owned chassis to operate on the railroad will result in more consistent service and less time in transit. We see huge benefits with Union Pacific to successfully deliver a positive service experience for our customers and drivers.”
Schneider and Union Pacific say they are working to improve driver efficiency at terminals, further reducing delays in transit. The railroad’s additional lane options and consistent rail departure frequency provides customers with more options, better reliability, and ultimately greater control over the supply chain.
“This is the beginning of a partnership built on a shared commitment to provide more sustainable intermodal services and reduce our carbon footprints,” Kenny Rocker, UP’s executive vice president of marketing and sales, said in a statement. “We look forward to future growth as we leverage Union Pacific’s extensive network and Schneider’s innovative logistics offerings to provide unparalleled customer service.”
With a fleet of 28,000 domestic containers, Schneider is the third-largest truckload intermodal operator. J.B. Hunt’s fleet tops 113,000 containers, while Hub Group rosters 45,000 boxes.
Intermodal analyst Larry Gross says Schneider’s move to UP is a major shift for domestic intermodal.
“The shift was announced long ago so there has been plenty of time to prepare. But the volume influx to the UP network will be significant, so the sector will be watching closely to see if service levels are successfully maintained and congestion is avoided,” Gross says. “With this change, the three biggest intermodal truckload asset-based players each have carved out a unique national network: JB Hunt (BNSF + NS); Hub Group (UP + NS); Schneider (UP + CSX).”
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