Title: Productivity, Sustainability, and Future Challenges in Truckload Transportation Christopher Lofgren,
1Productivity, Sustainability, and Future
Challenges in Truckload Transportation
Christopher Lofgren, President CEO, Schneider
NationalLos Angeles Transportation Club May
13, 2008
2Road Map
- Productivity
- Sustainability
- Capacity
3Schneider National has a successful history as a
privately held company in a highly competitive
industry
4Schneider is a transportation leader with a broad
portfolio of services
- Schneider National, Inc. is a premier provider of
transportation and logistics services. - 3.4 billion in revenue in 2007, privately held.
- Operate more than 11,000 tractors, 14,200
drivers, and 49,500 trailers and containers with
22,000 associates with principal operations in
United States (1935), Canada (1989), Mexico
(1993), Europe (1997), and China (2005). - Commitment to superior information and
communications technology
- Truckload
- One-Way Van
- Dedicated
- Expedited
- Regional
- Bulk
- Logistics
- Supply Chain Management
- International Logistics
- Transportation Management
5Productivity is the core of the problem
- Factors Impacting Productivity
- Hours of Service
- Congestion
- Length of Haul
- Driver Home Time
- Industry Maturity
- Economic Cycle
This trend drives inflation into the logistics
cost as a percent of GDP.
6Government policyright or wrongcontributes to
the challenges
With less hours to operate and some of these
hours consumed by congestion, the road to
productivity gets steeper.
7Customers can help with driver and asset
productivity
Long Haul Truck Driver's Week
Waste
Driving Under Load
Inactive
Waiting
Load/Unload
Empty Miles
Rest
They may require industry changes in hours of
operation.
8Experience in individual states demonstrates that
larger vehicles are feasible
80,000 lbs.
53
45
Two decades of no productivity improvement
48
60
40
100,000 lbs.
72,000 lbs.
Advancements in materials, design, and technology
makes new equipment safer at increased size.
9The industry has invested to reduce emissions
since 1988
- Investment / Cost
- 150 million additional capital to purchase
emission reducing equipment. - Over 29 million per year additional cost for
loss in fuel MPG (4 loss). - 30-40 million per year additional maintenance
costs.
Since 10/2002 for Schneider fleet of 11,000
company tractors.
The 2007 regulation eliminates 90 NOx (green
house gas) and over 98 of particulates
(smoke), but at the cost of increased fuel
consumption.
10Every aspect of equipment falls under the
microscope for aerodynamics improvement and fuel
conservation
This focus will only continue with rising fuel
prices.
11The delicate balance of supply and demand will
see more volatility from both the cyclicality of
freight and conservative growth in capacity
The next economic upturn will likely find a deep
shortage of capacity.
12The cost of operation is climbing, and the impact
on the U.S. economic position is real
The impacts, if not addressed will lower the U.S.
Standard of living.
13Thank You!
Property of Schneider National