Schneider intermodal moving western rail service to Union Pacific

Rhea-AI Summary

Schneider (NYSE: SNDR) is shifting its primary western U.S. rail partnership to Union Pacific (NYSE: UNP) starting January 1, 2023, enhancing its intermodal service capabilities. Schneider, with over 25,000 containers, aims to double its intermodal size by 2030. This transition will create more direct transcontinental connections and supports Schneider's sustainability goals, saving 700 million pounds of CO2 annually. The company is set to have the largest driver dray fleet among intermodal carriers on Union Pacific's network.

Positive

• Partnership with Union Pacific enhances intermodal service capabilities.
• Plans to double intermodal fleet by 2030.
• Expected to create more direct transcontinental connections.

Negative

• Transition to Union Pacific may incur operational adjustment costs.

GREEN BAY, Wisc., Jan. 19, 2022 /PRNewswire/ -- Schneider (NYSE: SNDR), a premier provider of transportation, intermodal and logistics services, announced today the company is expanding intermodal service by moving its primary western United States rail partnership to Union Pacific (NYSE: UNP) beginning in 2023.

Schneider has one of the largest intermodal fleets in North America with over 25,000 containers and plans to double the company's intermodal size by 2030. The company celebrated 30 years of intermodal service in 2021.

"The Union Pacific rail creates more opportunities for Schneider and our customers," said Schneider President and CEO Mark Rourke. "Having a differentiated rail network is a key component to our intermodal growth strategy and our goal to reduce carbon emissions."

According to Schneider, the carrier saves 700 million pounds of CO2 annually by working with railroads that can move a ton of freight up to 500 miles on a single gallon of fuel.

Schneider will have the largest company driver dray fleet of any intermodal carrier hauling freight on Union Pacific and the first carrier with both company-owned containers and chassis. With the combination of Schneider's eastern partnership with CSX, the transition will create more direct transcontinental connections for the company's customers.

"When we pair Union Pacific's transcontinental rail solutions with our company-owned assets and professional drivers, we will be an unstoppable force in the intermodal marketplace," said Schneider Senior Vice President and Chief Commercial Officer Jim Filter.

"We are excited to have Schneider be a part of our intermodal service offering," said Union Pacific Executive Vice President Marketing and Sales Kenny Rocker. "Schneider's operational excellence and focus on growth, combined with the strength of Union Pacific's intermodal network are a natural fit. We expect both companies to provide customer-centric solutions, utilizing Union Pacific's unparalleled franchise and reliable intermodal service product."

Schneider will continue to move freight with its current western rail provider for the remainder of 2022 and transition to full service on the Union Pacific rail network on January 1, 2023.

To learn more about Schneider's commitment to sustainability goals, visit Schneider.com/sustainability or Schneider Intermodal, go to Schneider.com/intermodal.

 

About Schneider

Schneider is a premier provider of transportation and logistics services. Offering one of the broadest portfolios in the industry, Schneider's solutions include Regional and Long-Haul Truckload, Expedited, Dedicated, Bulk, Intermodal, Brokerage, Warehousing, Supply Chain Management, Port Logistics and Logistics Consulting.

With nearly $4.6 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.

For more information about Schneider, visit Schneider.com or follow the company socially on Facebook, LinkedIn and Twitter: @WeAreSchneider.

Schneider Media Contact: Kara Leiterman, 920-370-7188 or leitermank@schneider.com

 

About Union Pacific

Union Pacific (NYSE: UNP) delivers the goods families and businesses use every day with safe, reliable and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.

Union Pacific Media Contact: Kristen South, 402-544-3435 or kmsouth@up.com

www.up.com, Facebook and Twitter

 

View original content:https://www.prnewswire.com/news-releases/schneider-intermodal-moving-western-rail-service-to-union-pacific-301463846.html

SOURCE Schneider SNDR

FAQ

What is Schneider's new rail partnership and when does it start?

Schneider is moving its primary western U.S. rail partnership to Union Pacific, starting January 1, 2023.

How does Schneider's partnership with Union Pacific impact their intermodal services?

The partnership enhances Schneider's intermodal services and creates more direct transcontinental connections.

What are Schneider's sustainability goals related to CO2 emissions?

Schneider's operations save 700 million pounds of CO2 annually by utilizing railroads.

What is Schneider's plan for its intermodal fleet size by 2030?

Schneider plans to double its intermodal fleet size by 2030.

What will be the implications of the new rail service on Schneider's operations?

The transition may incur operational adjustment costs but is expected to enhance efficiency.