Having options is always a good thing. Whether you’re talking about investing your money, buying a car (heated seats please) or deciding which movie to watch (thank you NetFlix). Why? Because having more options gets us closer to what we want.
The logistics industry is no different and this week LMS expanded its options.
On Monday, we acquired McCann’s Piggyback Consolidated, Inc., which is an Intermodal Marketing Company (IMC) based out of Fenton, Mo. By buying this IMC, we now have access to all Class 1 railroads. This gives LMS more opportunities for growth but more importantly, it gives our clients more modal options.
Read the headlines of a few transportation magazines and a few things become clear: diesel fuel costs are on the rise, truck capacity is tightening and shippers are seeking greener solutions. So, shippers need options. Enter intermodal.
Intermodal combines truck and rail transport to reduce costs, reduce greenhouse gas emissions and take freight off the road. In fact, a double-stacked train is equal to 280 trucks. And, rail is three times more fuel efficient than its over-the-road counterpart. The American Association of Railroads estimates that if an additional 10 percent of truck volume were shifted to intermodal, the annual savings would reach one billion gallons of fuel.
Sounds like a good option to me.
To bring the intermodal option into focus, we are combining our freight brokerage operations (Dedicated Services) with the McCann’s acquisition to form a new company, Freight Management Solutions (FMS). Dedicated Services and McCann’s staff members will now operate as the FMS team. These logisticians will work with clients to help them choose the option that is best for their freight needs.
You’ll be hearing more about FMS in the near future. And, I guarantee you’ll be hearing more about intermodal benefits as market conditions change and evolve. Just remember, you’ve got options.
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