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Schneider fully transitioned to Union Pacific for western rail service
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Rhea-AI Summary
Schneider (NYSE: SNDR) has successfully transitioned its western rail operations to Union Pacific Railroad (NYSE: UNP), creating the largest company driver dray fleet on the rail network. This strategic partnership enhances Schneider’s intermodal services, providing more coast-to-coast connections and access to additional rail lanes. The seamless transition, which did not disrupt customer service, is part of Schneider's goal to double its intermodal size by 2030 and improve sustainability. The collaboration aims to optimize operations, reduce emissions, and enhance service reliability for customers.
Positive
Transition to Union Pacific enhances intermodal service capabilities.
Access to more rail lanes and coast-to-coast connections.
Seamless integration without disruption to customer service.
Alignment with sustainability goals through reduced emissions.
Strategic partnership supports plans to double intermodal size by 2030.
Negative
None.
The move expands the company’s intermodal services and gives customers a differentiated rail offering
GREEN BAY, Wis.--(BUSINESS WIRE)--
Schneider (NYSE: SNDR), a premier multimodal provider of transportation, intermodal and logistics services, completed the transition of its western rail operations to Union Pacific Railroad (NYSE: UNP), making it the largest company driver dray fleet on the rail network.
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. 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.
The supply chain leader has one of the largest intermodal fleets in North America, including more than 28,000 company-owned containers which accompany a fully deployed company-owned chassis fleet. Schneider now has access to more rail lanes as well as direct connections on transcontinental freight due to the partnership between the Union Pacific and CSX networks.
“We believe the move in the West means we can offer our customers a distinct differentiator in the market,” said Schneider Executive Vice President and Group President of Transportation and Logistics Jim Filter. “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 are working collectively 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,” said Union Pacific Executive Vice President of Marketing and Sales Kenny Rocker. “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.”
“In addition to offering our customers more possibilities, the transition to Union Pacific is a crucial piece in furthering our sustainability goals,” said Filter.
Moving freight by rail has significant environmental benefits. One ton of freight can be moved 500 miles by rail on the equivalent of a single gallon of fuel. Working with Union Pacific provides a reduction in idling time and increased route optimization that leads to a cut in vehicle emissions. Additionally, Schneider announced in 2022 that it would be adding 92 battery electric vehicles to its intermodal operations in southern California, giving customers even more ways to cut emissions.
With nearly $5.6 billion in annual revenue, Schneider has been safely delivering superior customer experiences and investing in innovation for over 85 years. The company’s digital marketplace, Schneider FreightPower®, is revolutionizing the industry giving shippers access to an expanded, highly flexible capacity network and provides carriers with unmatched access to quality drop-and-hook freight – Always Delivering, Always Ahead.
What is the significance of Schneider's transition to Union Pacific?
The transition allows Schneider to expand its intermodal services and improve customer offerings, making it the largest company driver dray fleet on the rail network.
How will the partnership with Union Pacific affect Schneider's customers?
Customers will benefit from more reliable service, enhanced efficiency, and reduced transit times due to better rail connections.
What are Schneider's sustainability goals related to this transition?
Schneider aims to reduce its carbon footprint through improved route optimization and the use of battery electric vehicles.
What is the expected growth for Schneider's intermodal operations by 2030?
Schneider plans to double its intermodal size by 2030 as part of its strategic initiatives.
How does moving freight by rail impact the environment?
Rail transport significantly reduces fuel consumption and vehicle emissions, with one ton of freight moved 500 miles by rail using just one gallon of fuel.
