Download - Wharf and Warehouse.ppt · 2018. 4. 4. · Boyd Stephenson‐Representative from American Trucking Association. Truck - Van 19% Container Dray 27% Rail 27% Warehouse 27% Supply Chain

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Page 1: Wharf and Warehouse.ppt · 2018. 4. 4. · Boyd Stephenson‐Representative from American Trucking Association. Truck - Van 19% Container Dray 27% Rail 27% Warehouse 27% Supply Chain

Between the Wharf and the Warehouse ‐What's Next?

Chris Osen (Panel Moderator) – Vice President of Supply Chain, MeadWestvacoAdam Bridges ‐ Vice President of Marketing and New Business Development, TRAC Intermodal John Gray ‐ Sr. Vice President, Policy and Economics, Association of American RailroadsBrian Jones – Vice President Claims, Insurance & Regulatory, ZIM American Integrated Shipping SvcsBoyd Stephenson‐ Representative from American Trucking Association

Page 2: Wharf and Warehouse.ppt · 2018. 4. 4. · Boyd Stephenson‐Representative from American Trucking Association. Truck - Van 19% Container Dray 27% Rail 27% Warehouse 27% Supply Chain

Truck - Van19%

Container Dray27%Rail

27%

Warehouse27%

Supply Chain Example

Environmental Geopolitical Global Economies

Rail: * Boxcar availability* IM Infrastructure

Warehouse: * Inventories* Rail Served* Off Port/Near Port

Container Dray: * Clean trucks* Chassis model* Weight limits* Fuel Costs

Truck - Van:* Capacity - Drivers/Equip* HOS, CSA, * Highway Funding* Fuel Costs

Page 3: Wharf and Warehouse.ppt · 2018. 4. 4. · Boyd Stephenson‐Representative from American Trucking Association. Truck - Van 19% Container Dray 27% Rail 27% Warehouse 27% Supply Chain

Changes in Providing Chassis in the Container Industry

• Ocean carriers focusing on cost rationalizing and focusing on core business

• Third party equipment providers better suited to bring efficiency to chassis operations over time

• No single uniform solution adopted by all carriers• New opportunities for direct contracting between OTI’s, BCO’s and equipment providers

Page 4: Wharf and Warehouse.ppt · 2018. 4. 4. · Boyd Stephenson‐Representative from American Trucking Association. Truck - Van 19% Container Dray 27% Rail 27% Warehouse 27% Supply Chain

About TRAC

• World’s largest Marine and Domestic chassis provider  (260,000)

• Operating throughout North America• Network of chassis pools and depots at the freight• Supplier to Steamship Lines, Rails, Motor Carriers, Shippers, & 

Terminal Operators • Flexible solutions from leases to integrated operations

TRAC is an Intermodal chassis pool manager and equipment provider for domestic and international 

shippers

Page 5: Wharf and Warehouse.ppt · 2018. 4. 4. · Boyd Stephenson‐Representative from American Trucking Association. Truck - Van 19% Container Dray 27% Rail 27% Warehouse 27% Supply Chain

Chassis Market – In Transition2012 – 2014

Steamship lines exit chassisownership

70%

10%

10%

5%5% Leasing Co (70%)

Motor Carriers (10%)

Shippers (10%)

SSLs (5%)

Ports (5%)

~50% today

Terms of sales are changing – driving product innovation and quality

Page 6: Wharf and Warehouse.ppt · 2018. 4. 4. · Boyd Stephenson‐Representative from American Trucking Association. Truck - Van 19% Container Dray 27% Rail 27% Warehouse 27% Supply Chain

TRAC Partners Include

TRAC has over 2,400 Motor Carrier Customers 

Page 7: Wharf and Warehouse.ppt · 2018. 4. 4. · Boyd Stephenson‐Representative from American Trucking Association. Truck - Van 19% Container Dray 27% Rail 27% Warehouse 27% Supply Chain

Lease Pool

Equipment Nation Wide Availability Fleet Management & Maintenance

$250m Insurance Coverage

Incremental Capacity

Flexible Billing Solutions “Street” logistics

Solutions Are In The Market

New customers bring new needs and new ideas to the market

Page 8: Wharf and Warehouse.ppt · 2018. 4. 4. · Boyd Stephenson‐Representative from American Trucking Association. Truck - Van 19% Container Dray 27% Rail 27% Warehouse 27% Supply Chain

Keys To Smooth Transition

• Chassis Market – Scalable for block sales• Asset supply – Support seasonality & growth• Management – M&R and Fleet• Management – Data• Management – Billing• Hosting – Rails, Ports, Depots, Drop Lots, Swaps• Innovation – Bundled services

5/16/2012 9:29 AMDriving Efficiency, Safety & Compliance

Page 9: Wharf and Warehouse.ppt · 2018. 4. 4. · Boyd Stephenson‐Representative from American Trucking Association. Truck - Van 19% Container Dray 27% Rail 27% Warehouse 27% Supply Chain

Key Messages

• The supply chain is healthy• Competition is vibrant• Equipment efficiency is improving• Equipment quality is improving• Innovation & collaboration is accelerating

Page 10: Wharf and Warehouse.ppt · 2018. 4. 4. · Boyd Stephenson‐Representative from American Trucking Association. Truck - Van 19% Container Dray 27% Rail 27% Warehouse 27% Supply Chain

Data are for Class I railroads. e – estimate Source: AAR

U.S. Freight Railroad Capital Spending($ Billions)

Page 11: Wharf and Warehouse.ppt · 2018. 4. 4. · Boyd Stephenson‐Representative from American Trucking Association. Truck - Van 19% Container Dray 27% Rail 27% Warehouse 27% Supply Chain

ASSOCIATION OF AMERICAN RAILROADSSLIDE 11

Major Rail Served PortsGreater Than 1 Million Rail Tons Annually

Page 12: Wharf and Warehouse.ppt · 2018. 4. 4. · Boyd Stephenson‐Representative from American Trucking Association. Truck - Van 19% Container Dray 27% Rail 27% Warehouse 27% Supply Chain
Page 13: Wharf and Warehouse.ppt · 2018. 4. 4. · Boyd Stephenson‐Representative from American Trucking Association. Truck - Van 19% Container Dray 27% Rail 27% Warehouse 27% Supply Chain

ASSOCIATION OF AMERICAN RAILROADSSLIDE 13

Some Major Recent and Underway Intermodal Corridor and Terminal Projects

Page 14: Wharf and Warehouse.ppt · 2018. 4. 4. · Boyd Stephenson‐Representative from American Trucking Association. Truck - Van 19% Container Dray 27% Rail 27% Warehouse 27% Supply Chain

Important characteristics of the intermodal network

• Must accommodate both domestic and international business

• Focused around high volume origin‐destination pairs• At its best when operated as single origin to destination trains.

• Cost control and service reliability is critical.

Page 15: Wharf and Warehouse.ppt · 2018. 4. 4. · Boyd Stephenson‐Representative from American Trucking Association. Truck - Van 19% Container Dray 27% Rail 27% Warehouse 27% Supply Chain

Characteristics of newer generation of intermodal terminals

• Usually located outside immediate urban areas• Easily accessible to strong highway network, which allows rail corridor volumes to be maximized

• Designed to accommodate adjacent distribution/production centers

• Future growth land available• Minimization of “on terminal” vehicle movements

Page 16: Wharf and Warehouse.ppt · 2018. 4. 4. · Boyd Stephenson‐Representative from American Trucking Association. Truck - Van 19% Container Dray 27% Rail 27% Warehouse 27% Supply Chain

Characteristics of strong intermodal corridors

• Capacity sufficient to keep trains moving/avoid congestion delays

• Sufficient length to compete with truck service/cost• Sufficient density to keep costs competitive• Strong highway feeder system at each end at intermediate 

terminals.

Page 17: Wharf and Warehouse.ppt · 2018. 4. 4. · Boyd Stephenson‐Representative from American Trucking Association. Truck - Van 19% Container Dray 27% Rail 27% Warehouse 27% Supply Chain

• The supply chain is healthy• Competition is vibrant• Equipment efficiency is improving• Equipment quality is improving• Innovation & collaboration is accelerating

Summary

Page 18: Wharf and Warehouse.ppt · 2018. 4. 4. · Boyd Stephenson‐Representative from American Trucking Association. Truck - Van 19% Container Dray 27% Rail 27% Warehouse 27% Supply Chain

THANK YOU