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Annual Review & Outlook 2014: RoadOne IntermodaLogistics

Ken Kellaway, President and CEO 

There are many factors that are weighing heavily on the intermodal drayage business and exacerbating the contraction of drivers in the industry.

The transitional state of chassis equipment, changing over from steamship line management to drayage industry control, has resulted in inconsistent practices and inefficiency for drivers. The lack of standardization and diverse chassis options, including off-site and live-lift programs that require multiple stops, reduce driver productivity and motivation to remain in the drayage sector. As the economy picks up, new opportunities are opening up in other areas of trucking, such as truckload and construction, further reducing the driver pool.

Another factor that has had a major impact on intermodal drayage is government regulation. The hours of service rule that limits the number of hours a driver can be on the road has already reduced truck capacity by 3 to 5 percent and caused driver recruitment to decline. These industry events are counterintuitive to what needs to be done to support and build intermodal driver capacity. What can be done to preserve the drayage driver pool and prevent disruptions to the transportation of goods?

Price adjustments must become part of the solution to address the decline in intermodal driver capacity, especially with the significant growth in intermodal services, domestic and international. Increased pricing in the drayage sector will help preserve jobs and keep supply chains running efficiently. There also needs to be an increased focus on productivity, faster, more efficient turn-times, better chassis maintenance to reduce delays, and significantly improved chassis management to benefit drivers as well as supply chain performance. Additionally, the industry needs to support quality carriers who operate in a compliant, safe and efficient manner. The industry, all facets, must work together to reduce inefficiencies, standardize chassis, and develop solutions that prevent the drayage industry from becoming extinct.

Ken Kellaway is President and CEO of RoadOne IntermodaLogistics

A Brave, New World of Home Delivery

A Brave, New World of Home Delivery

By Dan McCue, July 2014, World Trade

The toughest part of the supply chain just became the front line in the battle for the consumer.

The push of e-commerce and changes in how we all live in the early 21st century — some dramatic, others less so — are altering the face of home delivery and recasting the role of the big-box store around the corner.

In an environment in which consumers now take it for granted that they can “want” and “have” in virtually the same breath, major retailers are striving to sate that appetite by getting as close to “pizza delivery” style service as possible, no matter what their customer has ordered.

What that has done, the experts say, is turn local delivery — once perceived as the sleepy end of the supply chain — into, in many respects, the front lines of the retail sector.

And in the process 3PLs are increasingly being asked to take a traditionally fragmented, mom-and-pop dominated segment of the logistics chain and make it act — and more importantly, respond — like a deeply integrated whole.

The main driver in this space, of course, is Amazon, the online retailing behemoth that over the past 20 years has become the most hated — and in equal respects, copied — competitor to retailers large and small.

In 2013, Amazon’s sales revenues topped $74.5 billion, and many market analysts predict the company will have revenues exceeding $100 billion by 2015.

This growth has been accompanied by the development of an extensive network of order fulfillment centers. As of March 2014, the company operated 108 fulfillment centers, including 55 in North America.

And according to several published reports, Amazon is likely to add a dozen more centers to its North American portfolio by the end of the year.

But there’s more to Amazon’s distribution strategy than the velocity with which it can break ground on new order-picking facilities — and the strategy in place is rapidly evolving, something that no doubt keeps many e-commerce and retail executives up at night.

When the company was founded by Jeff Bezos in 1994, its distribution model was relatively simple, relying on two fulfillment centers, in Seattle and Delaware, and on the parcel carriers FedEx and UPS. As Amazon grew, it added distribution centers, choosing the sites based on sales tax considerations rather than the new or prospective locations’ proximity to markets served.

The ability to avoid charging customers sales tax was initially a huge competitive advantage to the company. However, as more states introduce Internet sales tax laws, that advantage is evaporating.

So Amazon has adopted a new distribution strategy based on allowing same-day delivery as an option in all major metropolitan areas in the United States. Making that plan a reality has been the tailwind driving the pace of fulfillment-center construction.

As part of this new paradigm, Amazon has announced its intention to move in a significant way into the grocery sector. Called “AmazonFresh,” the service — enabling the customers to order groceries for same day delivery — is already in operation in a few West Coast cities.

In response, the big-box retailers are striving not only to catch up and match Amazon, delivery to delivery, but to do something with tangible goods that Amazon has so far been unable to accomplish — getting it into the consumers’ hands not in a day, but within hours.

“Consumers want immediate gratification,” says Ken Kellaway, CEO and president of RoadOne IntermodaLogistics and chairman of E*Fill America.

“So the pressure is to expand the web of distribution and migrate away from the mindset where you can establish three or five regional distribution centers and handle all your orders from them,” Kellaway says.

“Now it’s imperative to have multiple smaller locations around the country so that you can offer that same-day or second-day ground transportation delivery capacity,” says Kellaway.

People are responding in a number of ways, but the responses essentially boil down to these: either investing in expedited service from existing distribution facilities or, on the brick-and-mortar retailer side, adopting an “omni channel” approach to order fulfillment in which e-commerce deliveries are actually handled directly out of their stores.

“In this case the distribution center still exists, obviously, but in the scheme of online order fulfillment, their role is to feed into the store networks,” Kellaway says.

What happens on the store level is certainly evident to people who venture into one of the stores. While moving from aisle to aisle, they’ll encounter a “shopper” who somehow doesn’t really look or act like one.

“It’s actually someone from the back room ‘picking’ an e-commerce order, which is then going to be tendered to a local trucking company to try to get it to the customer that same day,” Kellaway says.

The new wrinkle is the greater emphasis on speeding goods to the consumer. If the plan is to feed the goods into the retail store and fulfill online orders from there, that’s going to come with one set of requirements.

If the plan is to fulfill e-commerce orders from the distribution center, there are going to be a whole other set of considerations — do you need to be next to a big FedEx or UPS hub, or does it make sense to use a regional player?

“There really isn’t a one-size-fits-all approach to dealing with e-commerce yet, and there may never be,” Kellaway says. “But what there is, is a balancing act.

“You need to be fairly close to the port so your inland costs aren’t too high on your inbound goods or materials, but you also have to determine who your preferred outbound carrier is going to be, and that’s very customer specific.”

While Amazon is certainly a driver in the local delivery space, other macro trends are also propelling change.

One is personal vehicle size. According to several analyses, the average American vehicle is about 20 percent smaller than it was 15 or 20 years ago. What that means is that the average person doesn’t have the ability to throw a new chair or table in the back of his car, let alone a Stairmaster, or something along those lines.

In short, home delivery is becoming more in vogue simply because it has to be.

Another factor driving home and local delivery dynamics is families in which both adults work. Given the demands they already feel on their time, they don’t want to expend time and energy going to buy a product and then taking it home and setting it up.

“As a result, there’s a huge and growing demand for value-added home delivery in which a consumer orders a good, has it delivered, and then has the deliverer actually set it up in his or her home,” Kellaway says.

“Ten years ago home delivery was at much more of a stage of infancy,” Kellaway says. “The quality of the service simply wasn’t as strong as it is today.

“Now, with the dramatic expansion we’ve seen in e-commerce, consumers are getting a much higher service level, much more visibility as to when the driver is going to be there and even instances where we can ping the customer to let them know if we are running late. In addition, there are all kinds of customer service surveys to help us identify where improvements can be made.

“In short, we’re now in an environment where customer demand is driving the expansion of home delivery, and the improvements that need to be made to meet that demand are the customers’ experience and further increasing demand for the service,” he says.

Facilitating Consolidation

Another person striving to make sense of all this is Rob Howard, CEO of Grand Junction, a company founded ten years ago to manage local delivery programs for others — “almost like a 3PL for local delivery,” he says — and has since gone on to create a technology platform that gives his clients a single point of contact for scores of carriers in previously disparate markets.

“The vast majority of our clients are large companies that have a significant need for local delivery but historically had little integration with local carriers,” Howard says as he describes the scope of need and opportunity in the local and home-delivery sector.

Office Max, had 20 percent of its sales volume moving through local trucking firms, but essentially let it leave its facility blind — with no visibility of the status of the order, and effectively no quality or cost control.

“We went in and took the 60 or so local carriers that they were using and put them all under the Grand Junction umbrella, and with that, the first thing Office Max was able to do was rank those carriers on quality: which had the worst on-time performance? Okay, now that we know, let’s get them out of here. And, which were the most expensive? Okay, let’s get them out of here,” Howard says.

“Most importantly, we were able to empower visibility so that their call center was able to look in real time and see what was going on in every local movement across the country. That was important because, prior to that, it was a black hole.”

“So now Office Max, in terms of the last mile, says, ‘Wow, I’ve got this figured out. I’ve got a national platform. I’ve got a high-quality delivery experience. I have really good visibility. And I feel good that I’ve got the best market-based price,” he says.

Overcoming Challenges

As great as that example is, Howard admits getting to the point where a 3PL could offer such a solution — and where a client realized he needed it — was a long time coming.

“This industry is very vibrant, but it’s also very fragmented,” he says. “There are 4,000 different local delivery companies in the U.S. alone.

“As you can imagine, it takes a lot of effort to integrate these local carriers into a cohesive system, particularly because they don’t have a lot of technology,” Howard says. “So as we work with a client to create this cohesive system for them, we build technology — customer relationship management (CRM) systems and GPS alerts — that the local carriers would have a hard time building for themselves.”

Another client that’s benefitted from this approach is I-O Metro, a retailer that’s a significant presence in a dozen markets in the Midwest.

In I-O Metro’s case, pre-paid delivery orders are automatically sent to the Grand Junction platform, from which they are routed to a local carrier who then arranges for pickup from the store or distribution center and then delivers it directly to the customer.

“Along the way we’re getting updates from the carrier.” Howard says.

Lessons for the Future
Omni-channel shipping can be as much of a challenge as it is a solution, according to retail consultancy Kurt Salmon.

In a recent report, the consultancy analyzed the fulfillment performance of 70 retailers on orders placed on Cyber Monday (December 2, 2013), the biggest online shopping day of the year. Among its findings was that of the retailers who promised Christmas delivery, only about 80 percent got the presents under the tree in time.

According to the study, top performers excelled in quick turnaround, especially during crunch time, with the top five retailers on the list averaging 1.6 delivery days for multi-unit orders placed on Cyber Monday. The average delivery time across all retailers examined in the study during peak season (between Black Friday and Christmas) was nine days — including 3.4 days for processing and 5.5 days for shipping.

“Many retailers are still playing catch-up with the omni-channel movement; they are investing heavily in their in-store Black Friday promotions but aren’t similarly preparing for an influx of online shopping over the course of the Thanksgiving weekend,” says Michelle Bogan, a partner in Kurt Salmon’s Retail and Consumer Products Group. “For the past two years, online sales have outpaced in-store purchases during Thanksgiving weekend, and while Cyber Monday remains the biggest online shopping day of the year, Black Friday is quickly catching up.”

Most of the purchases examined in the study were shipped from a retailer’s fulfillment center; only 14 percent of orders were shipped directly from stores. When retailers did ship from their stores, the average delivery time tended to be significantly shorter.

In the study, 38 percent of orders originated from two or more shipping points (including stores and distribution centers), indicating that some retailers did not have the necessary inventory or systems in place to efficiently fill orders. While most of these multi-location orders were filled across two or three shipping points, nearly 10 percent came from three or more locations.

“What we are seeing is a trend to leverage store inventory to ‘save the sale’ and maximize margins when a fulfillment center or a single store might not have the inventory to support the entire order,” Bogan says.

Tweaking Perspectives

“I know it’s a cliché, but we really do have to understand our customers’ business and where they are going with it, because if we don’t understand their business, we can’t react properly, and we can’t build our network properly,” Kellaway says.

Putting an even finer point on this, he explains, “The most important thing is understanding what their ultimate end game is and what the overall trends in the marketplace are; those are key for us all the time, because in the 20 years we’ve been doing this, we’ve seen dramatic swings in concepts and methodologies.

“Fifteen years ago, for instance, everybody was using one distribution center that was simply feeding into retail stores; Now, with the advent of e-commerce, it’s a multi DC distribution point feeding into retail stores that are really designed now to carry out order selection and home delivery.”

What does that mean for the logistics services provider?

“It means you have to follow the macro trends in the marketplace and then partner with your customers to make sure all parties are on board and understand the direction things are headed in,” Kellaway says.

Right now, the experts agree, Amazon is setting the baseline for everybody, in terms of both price and service.

“This is very challenging because, as we know, Amazon has decided to operate at aggressive price points,” Kellaway says. “Some would argue they are not making any money at what they are doing today in order to build density and acceptance in the market, but that puts tremendous price pressure on other retailers who are trying to compete and who might have dramatic erosion if Amazon were allowed to simply pursue this course unchallenged.

“The big challenge is how do these existing big-box retailers use the existing assets they have at the highest and most optimal way possible,” he continues.

“Interestingly enough, when we first started talking to the big retailers about morphing over to e-commerce, it was looked at as taboo to do fulfillment out of the retail stores,” he recalls. “But what’s happened is they’ve since realized they already have 1,000 to 3,000 distribution centers in their system — they just happen to be called retail stores.

“Once you realize that, the question become one of how best to take advantage of that fixed asset, and time and again the conclusion has been, ‘if the customers aren’t going to come into the store, let’s bring the product to them from the store,’” Kellaway says. “To me, that’s been the interesting migration we’ve seen over the past couple of years, and it’s changing the way business is done from what we all think of as the traditional retail store.”

Canada’s Model

How does the situation look from an international perspective? The closest example of what we’ve been talking about is, of course, Canada, where Purolator International is a major player servicing U.S. companies that sell into that market.

Canada is the United States’ number one export destination, and typically e-commerce companies and direct marketing firms that are expanding outside the U.S. turn to Canada or to Canada and the United Kingdom first, due to the commonality of the language and the ease of transitioning their materials, marketing and even their websites to those markets.

“As a result,” says John Costanzo, Purolator International’s president, “while focusing on Canada may sound limiting to some, for what we do, which is helping U.S. companies exporting products, Canada is a pretty good position to be in.”

But that’s not to say there aren’t also challenges that come with the cross-border aspect of local and home delivery.

“The assumption a lot of folks who are new to the Canadian market make is, ‘Well, it’s a common language, similar culture, its adjacent to the U.S. and, in many cases, some of the largest Canadian markets are closer to their home markets than some U.S. cities, so it looks like an easy entry,’” Costanzo says.

“Now, it’s easier to enter than some other countries in the world, but it is another country and there are complexities to getting shipments into those markets cleared and delivered. Even more importantly, I think something people don’t often take into account when they first enter Canada is how you get returns back to the U.S. market, because you have to get through U.S. customs in a seamless way.

The typical product being sent into Canada for local delivery is a consumer product, and on the surface there’s nothing inherently complex about them. But Costanzo says many people are surprised by the requirements attached to such innocuous products such as perfume and cosmetics.

“You have to make sure Health Canada is satisfied that what you’re importing satisfies all of the regulatory concerns and issues they have — and in a case like that, having the right classification of entry for the product destined for home delivery is very important,” he says.

“One of the things we do for clients is we help classify their shipments for them up front, before we handle one, to make sure all of the regulatory issues that may impact the delivery are handled and dealt with,” Costanzo says.

“Another one that people often forget is that most goods today are not manufactured in North America. The majority of goods sold and shipped between the U.S. and Canada are likely manufactured someplace else … so the origin country is another criteria to establish up front. Canada and the U.S. have great agreements in place related to goods manufactured in North America, to encourage trade, but if the product is manufactured someplace else, some of those benefits don’t exist.”

In May 2013, Purolator and Canada Post — the two entities that together handle about 70 percent of Canada’s small package deliveries — combined the strengths of their networks, integrating the IT and the clearance system for low-value items, and created PuroPost, a product that targets e-commerce shippers in the United States.

“It’s been very, very successful,” Costanzo says.

One reason is that the density of home deliveries in many parts of Canada is much less than what is typically found in the United States, and many parcel deliveries are made into community mailboxes.

“I think the goal of Canada Post is to get 65 percent of parcel deliveries through those boxes, which make home delivery very convenient for consumers because they know if they are expecting a package, they will find it in that box when they get home at night rather than finding a little note on their door,” Costanzo says.

“Now, with the combining of our two networks, which gives us access to the community mailboxes, the clearance system that we offer and all the assets we have now in the States, that project has really taken off — particularly in regard to e-commerce,” he says.

Like their American counterparts, Canadian retailers are also trending toward an omni-channel model of delivery, using their brick and mortar stores as vehicles to pick and fulfill online orders placed by consumers.

Typically the logistics chain begins with a large distribution center in the U.S., which transfers goods destined for home delivery to a secondary distribution center in Canada. From there, orders are either fulfilled directly, or the goods are sent on to the store or outlet closest to the consumer and shipped from there.

“There are multi-channels for delivery, and it’s really important to be on top of that,” Costanzo says.

“The thing to remember about home delivery is, on a lot of levels, customer experience is going to drive the decisions customers make, and [in terms of the future] our customers are already showing us that what they are looking at is what method of delivery can provide the fastest order fill rate,” he continues. “That’s going to be a dynamic that gets more and more important over the next few years.”

The other dynamic at place in the home delivery space in Canada revolves around the issues of returns — a reality Costanzo believes is often overlooked.

“Returns can be as low as 2 or 3 percent and go as high as 20 to 30 percent, depending on the nature of the commodity and the ability to get those returns back, to make sure you’ve cleared them and to make sure they are in good shape to be restocked, or perhaps not, and need to be sent back to the U.S. or destroyed … that’s a factor that I think is going to become a pretty important one,” he says.

In response, Purolater International maintains a returns center in Toronto and has launched a logistics division that will handle warehousing and inventory of returns for customers and will inspect material and so on, rather than having to send those items back down to the U.S.

“I think that’s going to become a bigger and bigger part of this whole home delivery operation,” Costanzo says, adding, “Our partnership with Canada Post will play an important role in this as well.

“That’s because with the PuroPost product I mentioned, a consumer can simply return a product they received via home delivery to their local store, and it will be returned directly to the e-commerce company providing that shipment in the U.S.

“That’s an easy way to return a shipment for sure, and I think that’s going to be a key part of this emerging business,” he says.

Domestically, Grand Junction’s Howard says, returns currently make up about 8 percent of the firm’s business, and the return of a large item, like a washer or dryer that’s been swapped out for a new model is simply considered a second delivery.

“We don’t do repackaging or repair,” he explains. “So what we do is gather items at the local carrier, and then the shipper or a third party will come and collect them over a predetermined period of time,” he says.

Exceptional Delivery

The key to managing home delivery as it is in other aspects of the supply chain is managing exceptions, those instances when things don’t quite go as planned.

“Frankly, in our world, the ones that go through and go well are not the ones we care about,” Howard says. “We’re happy, of course, but it’s the deliveries that don’t go well that we really hone in on.

“Whenever there’s a contact, it’s in our CRM system, so our client can see every driver associated with every delivery, and can respond whether there’s a one-off event or a developing trend,” he says. “What we want to know in both cases is, ‘why’?’

“For instance,” Howard says, “‘Why is driver 44 constantly getting complaints?’ or ‘Why is his on-time performance so bad?’ Having a platform that provides visibility into your local delivery processes empowers the client to make a change, or, if it is a small carrier company, you could suggest that to keep your business the company might want to retrain that driver.

“The goal, always, is to make sure the exception is removed,” he says.

Developing Flexibility

All of this may raise the question, “What about the cost of all this visibility?” Given the disparate nature of “local” delivery, how can a big-box retailer reduce or effectively manage its expenditures while going toe-to-toe with Amazon and other e-tailers?

“Well, let’s go back to the Office Max example,” Howard says. “Traditionally, each distribution center the company operated had gone out and found a local carrier, and then the bill would be sent from the local carrier back to the local distribution center.

“As you can imagine, it is very difficult to audit these bills,” he continues. “They come in and it’s for a delivery that happened two weeks ago, and you have no way of knowing whether the rate was appropriate or if it even actually happened, and you’ve got 56 different people auditing or not auditing those invoices. So that’s the first-level problem — the audit.

“In our environment, the rates are entered into our system and the payment is direct-deposited into the local carrier’s checking account. So we don’t deal with invoices. We control the rates, and there’s no possibility for overcharging. That’s the first cost saving.

“The second one is making sure you have an effective price across markets,” Howard continues. “For example, why is a delivery in Lake City twice the cost it would be in San Antonio? You can’t do that kind of comparison with a platform in place that allows for visibility into disparate markets, and once you have that you can make constructive decisions that will allow you to manage those costs.

“Lastly, I’d add, better quality also improves the cost equation,” he says.

Kellaway says one way his team has found to keep costs down is handling multiple clients in the same facility.

“It’s a strategy of marrying up companies in fulfillment centers that are complimentary in some way — for instance, pairing a home and garden company that does a lot of business in the spring with a more holiday-related company,” he says. “That way, you can time-share your assets, if you will, whether the asset you’re talking about is the building infrastructure or conveyors or forklift trucks or staff and technology.

“Blend those situations correctly and get a good synergy going, and you achieve significant savings from a fixed cost perspective,” he says.

On the transportation side, Kellaway believes the success or failure of a local delivery effort comes down to a single factor: outbound density.

“So, say you want to do ‘milk runs’ from a specific DC or even a retail store,” he explains. “To make that work, you have to create enough density to make it cost effective. You need fluid deliveries and route optimization to make sure you are maximizing the utilization of that truck.

“But that’s very hard to do. There’s no question about it. And it’s critical because any time you have diffuse deliveries without a lot of density, it drives up costs significantly,” he says. “So what we have right now is an environment in which people are working very hard to figure out how to optimize their systems in a morphing world, and it’s morphing and changing so much today that the challenge is never entirely behind them.”

A Changing Landscape

Given the ease of e-commerce and the increased comfort people feel about buying online even in the face of threats like identity theft and hacking, it’s a certainty that an ever-growing number of purchases will find their way into the home delivery supply chain.

Howard and others predict that as the online tide continues to rise, more and more companies will shift toward using local delivery instead of using their own fleets or using full truck loads.

“That shift is possible because they now have a viable alternative to the way things used to be,” he says.

But there’s something else pushing traditional retailers into the local delivery space — Amazon’s same-day delivery.

As a result, experts agree, a growing number of traditional retailers feel Amazon has thrown down the gauntlet on their home turf, challenging them to take it on by offering customers same day or even one hour delivery.

“The thing every retailer is thinking is, ‘How do I differentiate myself from Amazon?’ Well, Amazon can’t do one-hour delivery. I can. How do I do that? Well, you have to use local delivery to do that,” Howard says. “In our view, the rise in service levels growing out of this competition bodes well for a general increase in local delivery — and we think we’re pretty well positioned to take advantage of that.”

For his part, Kellaway posits that big-box retailers will continue to try to figure out what to do with their assets, and as fewer people come to the retail store, he says, “I suspect you are going to see more of the locker concept come to the retail store.

“We have retail outlets up here in New England, like Stop and Shop, who have adopted a model in which they will do the shopping for the consumer and then place the item in a locker outside the store where the customer can pick up their order and go.

“The virtue of this is that it eliminates the cost of final mile delivery, which can be expensive, while still providing a service and encouraging the consumer to shop with you,” Kellaway says. “I think that’s what will further develop in the marketplace as people try to figure out what do you do with these big retail stores.

“In the long run it may be that the big retailers turn their stores into consumer pickup-and-delivery places, locations where the customer can come and pick up shipments not only from this specific retailer, but from multiple businesses. I really wouldn’t be surprised to see something like that occur, especially as retailers continue to grapple with how to take the cost out of final mile delivery,” he says.

Sidebar:

Beating Congestion

While talk of drones delivering individual parcels captured the imagination of many and headlines around the world, DHL was relatively quiet about its own plans for upping the ante in time-sensitive delivery.

One of the challenges facing any delivery company trying to maintain service levels in a highly populated urban area is traffic congestion. DHL has decided to rise above all of that — literally.

To meet urgent delivery commitments in the midst of traffic gridlock, DHL introduced a new helicopter service for several major banking customers in the downtown Los Angeles area.

DHL Express introduced the helicopter service into its Los Angeles operation as a way to guarantee early morning 9:00 a.m. delivery service regardless of traffic bottlenecks. Used by specific financial services customers, this service will expand to include additional customers in the Los Angeles area.

“DHL is always looking for innovative ways to move our customers’ shipments with the greatest speed and reliability,” said Mike Parra, CEO of DHL Express U.S.

International shipments arrive at the DHL LAX Gateway, with specific packages transported by helicopter to a dedicated heliport in downtown Los Angeles. A DHL courier meets the helicopter and provides the final mile deliveries.

The DHL helicopter, a “Twinstar” Eurocopter AS355, is operated for DHL by Helinet of Van Nuys, Calif., and can transport up to 800 lbs. of letters and packages.

A DHL helicopter service is also used in New York, providing lifts from the DHL JFK gateway to prime U.S. bank headquarters and Federal bank locations, making stops in downtown Manhattan and at New Jersey’s Teterboro Airport to speed deliveries of important financial and legal documents.

Don’t expect helicopter deliveries to reach residential neighborhoods any time soon, but it does make those drone experiments sound a little more realistic

RoadOne IntermodaLogistics Marks First Anniversary with Enhanced E*Fill America Partnership

RoadOne IntermodaLogistics Marks First Anniversary with Enhanced E*Fill America Partnership
– Further develops single source, integrated logistics solutions designed to deliver efficient, seamless transportation and distribution services –
Randolph, Massachusetts, January 27, 2014RoadOne IntermodaLogistics, a leading single source intermodal, distribution, and logistics services company established January 2013, announces today that the company is celebrating its first anniversary. One year ago, RoadOne was launched to deliver integrated, single source transportation and logistics solutions to meet today’s economic and market challenges. Within this year, RoadOne has expanded its national intermodal network with a new agent-based model under the US IntermodaLogistics name and strengthened its partnership with E*Fill America to deliver extensive warehousing and fulfillment services throughout the U.S. and Canada.

The RoadOne IntermodaLogistics strategic partnership with E*Fill America, an affiliate of RoadOne, delivers synchronized and seamless, one stop warehousing and transportation programs that offer the ease and efficiency of a single point of contact. Additionally, RoadOne delivers a complete real-time visibility solution for inventory and freight in-transit, that allows businesses to respond quickly to unplanned events, manage costs, and speed delivery.

Within this last year, RoadOne founders and industry veterans Ken Kellaway and David McLaughlin have advocated for improvements to intermodal driver capacity issues that have the potential to cause supply chain disruptions. They are focusing on advancing: price adjustments to address declining driver capacity, greater chassis efficiencies for drivers to increase productivity and supply chain performance, and the impact of government regulations such as HOS (Hours of Service) that are negatively impacting the size of the drayage driver pool.

“On our one year anniversary, we are pleased to see that companies are embracing single source logistics management solutions that add efficiencies, improve inventory management and operational performance. By partnering with E*Fill America, we deliver integrated logistics solutions that offer significant advantages and add value to today’s supply chains,” said Ken Kellaway, CEO, RoadOne IntermodaLogistics. “Part of adding value is helping to create sustainable intermodal solutions that address today’s supply chain needs and future growth. We will continue to work to expand our logistics and intermodal capabilities, bring more environmentally friendly tractors into the marketplace, and help our customers and drivers navigate the changing chassis landscape. ”

RoadOne IntermodaLogistics

RoadOne delivers a comprehensive single source logistics solution to customers by providing the highest quality, reliable port and rail container drayage, terminal operations, dedicated truckload solutions, transloading, warehousing and distribution solutions nationwide. RoadOne operates in over 40 locations with 1,000 drayage tractors throughout key intermodal locations across North America.

RoadOne is committed to serving the changing logistics and transportation service needs of customers throughout North America. This vision of consistently offering diversified service offerings means that RoadOne will grow and innovate to help customers meet not only their business requirements but also increase the satisfaction of their customers. www.roadone.com

E*Fill America

E*Fill America, an affiliate of RoadOne IntermodaLogistics, is a national leader in warehousing, distribution and fulfillment with over 175 locations in the U.S., as well as in Canada and Europe. In the continental U.S., E*Fill has over 60 million square feet of warehouse space and provides global value-added distribution services including: transloading, cross-dock operations, and consolidation. E*Fill has locations within Foreign Trade Zones and delivers U.S. Customs Bonded, temperature controlled, certified food grade, and hazardous material facilities in locations throughout the U.S.

The proprietary XPress ONE system connects all 175 facilities and is integrated with 100s of major shopping carts and e-commerce platforms. It delivers real-time inventory status and provides tracking of order processing and shipments.

Quality, customized, responsive services are the hallmark of E*Fill America. By combining local, single point of contact customer service, for both transportation and distribution services, E*Fill America provides a streamlined, single-source solution throughout North America.
For more information: www.efillamerica.com

RoadOne Establishes Lease to Buy Program for its Owner-Operator Drivers

RoadOne Establishes Lease to Buy Program for its Owner-Operator Drivers

Supports driver community entrepreneurship, introduces environmentally friendly equipment, and strengthens its driver network –

Randolph, Massachusetts, January 21, 2014 – RoadOne IntermodaLogistics, a leading single source intermodal, distribution, and logistics services company, announces today a new initiative with GreenFleet Ventures that allows RoadOne’s owner-operators in North America to lease 2010 and newer vehicles, and more environmentally friendly tractors to help them establish and maintain their own businesses. This program commenced October 1st with RoadOne making a total of 20 tractors available to its owner-operators. Financing is guaranteed by RoadOne through the GreenFleet program.
RoadOne is committed to programs that provide ongoing support of its driver community. In 2013, RoadOne worked with Massport to set-up grants for drivers to help them purchase new tractors. This is just one example of how RoadOne is helping drivers improve their equipment quality.
“We are pleased to work closely with our RoadOne owner-operators to assist them in acquiring more modern tractors with lower carbon footprints, and support their sole proprietorship business. Over the next 3 years, we will expand our capacity by an additional 400 tractors for this leasing initiative,” said David McLaughlin, RoadOne’s COO.

RoadOne IntermodaLogistics, based in Boston, was launched January 2013 by industry veterans Ken Kellaway and David McLaughlin. The Kellaway – McLaughlin leadership team was established in 1993 when they joined forces to run Kellaway Intermodal & Distribution Systems. This strong management partnership continues today with the recent launch of RoadOne IntermodaLogistics.

RoadOne IntermodaLogistics

RoadOne delivers comprehensive single source logistics solutions to customers by providing high quality, reliable port and rail container drayage, terminal operations, dedicated truckload solutions, transloading, warehousing and distribution solutions nationwide. RoadOne operates in over 40 locations with 1,000 drayage tractors throughout key intermodal locations across North America.
RoadOne is committed to serving the changing logistics and transportation service needs of customers throughout North America. This vision of consistently offering diversified service offerings means that RoadOne will grow and innovate to help customers meet not only their business requirements but also increase the satisfaction of their customers. www.roadone.com

RoadOne IntermodaLogistics is providing the logistics support for the 900-mile journey from TOTO’s facilities in Fairburn, GA, to Oklahoma City

TOTO SUPPORTS OKLAHOMA TORNADO RELIEF AND REBUILDING

Company Donates Beautiful, Well-Designed Bathroom Fixtures to Help More than 2,000 Families Rebuild their Homes

– RoadOne IntermodaLogistics is providing the logistics support for the 900-mile journey from TOTO’s facilities in Fairburn, GA, to Oklahoma City –

(Morrow, GA) November 12, 2013 — TOTO announced today that it has shipped its beautiful, high-performance bathroom fixtures to assist more than 2,000 families in Moore, Shawnee and El Reno, OK, with their long-term rebuilding process.

“Our hearts go out to the victims of May’s devastating tornados,” said Bill Strang, President of Operations for the Americas, TOTO USA. “We wanted to aid our friends and neighbors in Oklahoma with their long-term recovery process, so we are sending three 40-foot container trucks laden with our beautiful designs that offer superior performance—toilets, faucets, showers, and accessories—to help families in these communities rebuild their homes.”

TOTO is assisted in this humanitarian project by its partners WinWholesale, Inc., Oklahoma City Winnelson, RoadOne IntermodaLogistics, and the Oklahoma Disaster Recovery Project.

“We’re grateful to our partners on this philanthropic project,” said Jason Fitzsimmons, Vice President of Sales, US Sales Division, TOTO USA. “WinWholesale and Oklahoma City Winnelson are providing much needed long-term storage for the three containers that house our products. RoadOne IntermodaLogistics is providing the logistics support for the 900-mile journey from our facilities in Fairburn, GA, to Oklahoma City. The Oklahoma Disaster Recovery Project is working with families in the local communities to help them get back on their feet by minimizing gaps in the relief and recovery system.”

“WinWholesale and Oklahoma City Winnelson are very pleased to partner with TOTO in providing in-kind bathroom fixture donations to the victims of the horrific tornado that struck central Oklahoma last May,” said Jack Johnston, President, WinWholesale Inc. “Oklahoma City Winnelson has been part of the community for more than 30 years. Company president Bill Cudd and his team are grateful for the opportunity to help their neighbors rebuild their lives.”

“We are proud to be part of this important rebuilding effort that is helping fellow Americans in their time of need. As a national company, RoadOne IntermodaLogistics believes in supporting the communities it touches everyday with its intermodal, trucking and logistics solutions,” said Ken Kellaway, CEO, RoadOne IntermodaLogistics.

TOTO is grateful for the local area support it has received from the Oklahoma Disaster Recovery Project, a collaboration of case management through American Red Cross, the Salvation Army, Catholic Charities, Society of Saint Vincent de Paul, and the Oklahoma United Methodist Church, other nonprofit organizations, government, non-government, church and civic organizations in partnership with the United Way of Central Oklahoma and Oklahoma Voluntary Organizations Active in Disaster.

“Recovery is not a sprint, rather a marathon so ongoing resources are needed to provide assistance. We could not do this without support from generous donors like TOTO. This donation provides a much needed resource for families impacted by the recent tornadoes,“ said Kami Kuykendall, Senior Director of Recovery with the American Red Cross, a partnering agency in the Oklahoma Disaster Recovery Project.

Kuykendall continued, “The Oklahoma Disaster Recovery Project has been working hard for months helping families in all areas affected by the spring storms and is committed to assisting clients with resources to meet their disaster-related needs. Our case managers are mobile and can go to clients, or clients are welcome to come by one of our three office locations. Help is just a phone call away at 1-866-477-7276.”

Editor’s Note: As with all TOTO programs, high-resolution digital photographs are available immediately upon request.

About TOTO:
TOTO USA is headquarters for the Americas Division of the TOTO Global Group, which was established in 1917 with the founding of TOTO, Ltd., in Kitakyushu, Japan. TOTO is the world’s largest manufacturer of bathroom fixtures and fittings with $5.1 billion dollars in annual sales. For nearly 100 years, TOTO has been the recognized leader in performance innovation and design with products that enhance the luxury bathroom experience. Today, the company maintains 23,500 employees in 69 offices around the world and owns manufacturing facilities in Japan, Mexico, the USA, China and Europe with an affiliated network of more than 80 production facilities worldwide. With over 1,500 engineers on staff and three centers devoted to research and development, TOTO is dedicated to engineering products that respect the environment while meeting people’s needs for comfort, beauty and performance. TOTO’s corporate philosophy – People-First Innovation – is the guiding principle for all the company’s processes, from engineering and design to manufacturing and sales. Consumers enjoy the peace of mind that comes from knowing they purchased a brand that innovates to improve people’s quality of life. Winner of numerous domestic and international awards and recognitions, TOTO is the only plumbing manufacturer honored as Water Efficiency Leader by the U.S. Environmental Protection Agency. The company continues to raise industry standards and consumer expectations as to what is possible in the bathroom, as TOTO believes a high-quality bathroom is an experience and an everyday luxury people value and appreciate.

For more information, consumers may visit www.totousa.com or call 1.888.295.8134, Option 5. Follow TOTO on Twitter (@TOTOUSA) and become a TOTO fan on Facebook

About WinWholesale, Inc.
WinWholesale Inc. (www.winwholesale.com) is a leading supplier of residential and commercial construction and industrial supplies and materials headquartered in Dayton, Ohio. The privately-held company has more than 550 wholesaling locations in 45 states and offers entrepreneurs the unique opportunity to own part of the local business. Collectively, WinWholesale is known as “The Win Group of Companies.” In the group are companies, such as Winnelson, conducting business-to-business wholesale distribution. The products include plumbing and heating supplies; hydronics; industrial pipe, valves and fittings; heating, ventilation, air conditioning and refrigeration equipment; electrical equipment; industrial and commercial fastening hardware; waterworks and utility supplies; domestic, commercial and industrial pumps, and turf irrigation and landscape supplies. Follow WinWholesale on Facebook, Twitter and YouTube.

About RoadOne IntermodaLogistics
RoadOne delivers a comprehensive single source logistics solution to customers by providing high quality, reliable port and rail container drayage, terminal operations, dedicated truckload solutions, transloading, warehousing and distribution solutions nationwide. RoadOne operates in over 40 locations with 1,000 drayage tractors throughout key intermodal locations across North America.
RoadOne is committed to serving the changing logistics and transportation service needs of customers throughout North America. This vision of consistently offering diversified service offerings means that RoadOne will grow and innovate to help customers meet not only their business requirements but also increase the satisfaction of their customers. www.roadone.com

About the Oklahoma Disaster Recovery Project
The Oklahoma Disaster Recovery Project (ODRP) is an integrated team of case managers provided by a partnership between the American Red Cross, Catholic Charities, Salvation Army, Society of St. Vincent De Paul and the Oklahoma United Methodist Church. There are offices open in Shawnee, Moore and El Reno to make it as convenient as possible for individuals and families.

The magnitude of devastation caused by a set of storms on this scale impacts the community in a variety of significant ways. Case Managers are trained to assist individuals and families in identifying assistance for the needs caused by the damaging impact of this disaster. These needs include anything from transportation, housing, home repairs to medical and mental health care. All cases are different and are based on the individual and/or family needs. Those needing assistance can call 1-866-477-7276.

RoadOne IntermodaLogistics Appoints Rick Longerbeam as Norfolk Terminal Manager

 

Randolph, Massachusetts, November 4, 2013 – RoadOne IntermodaLogistics, a leading single source intermodal, distribution, and logistics services company, announces today the appointment of Rick Longerbeam as terminal manager for RoadOne IntermodaLogistics’ Norfolk, Virginia location.   Rick will lead RoadOne’s expansion in this market to support the intermodal needs of customers in this important Southeast trade region.  RoadOne’s recently established agent drayage and brokerage affiliate, US IntermodaLogistics, also has a terminal operation in Norfolk and is slated for national expansion.

The RoadOne Norfolk terminal is located at 2309 County Street, Portsmouth, Virginia.

With the Panama Canal expansion due to be completed late 2014, RoadOne is committed to solidifying its position as a premier national, intermodal transportation provider with a strong presence on the U.S. East Coast.

Most recently, Longerbeam was terminal manager for Port City Transportation and prior to that G&P Trucking.  As terminal manager he was responsible for all daily operations including:  on-time delivery, customer service, driver recruitment, and sales and marketing.  Prior to these positions, Rick was service center manager at Roadlink Transportation Solutions where he managed the international and domestic drayage operations.

“I am pleased to have Rick on board as he brings a wealth of intermodal operations management experience to RoadOne IntermodaLogistics.  As RoadOne pursues bold national expansion of its S3, single source solution, service portfolio, we’ll continue to position key personnel, such as Rick, in key roles to ensure our customers receive superior logistics and transportation services,” said Ken Kellaway, CEO, RoadOne IntermodaLogistics.

RoadOne IntermodaLogistics, based in Boston, was launched January 2013 by industry veterans Ken Kellaway and David McLaughlin.  The Kellaway – McLaughlin leadership team was established in 1993 when they joined forces to run Kellaway Intermodal & Distribution Systems.  This strong management partnership continues today with the recent launch of RoadOne IntermodaLogistics.

RoadOne IntermodaLogistics

RoadOne delivers a comprehensive single source logistics solution to customers by providing high quality, reliable port and rail container drayage, terminal operations, dedicated truckload solutions, transloading, warehousing and distribution solutions nationwide.  RoadOne operates in over 40 locations with 1,000 drayage tractors throughout key intermodal locations across North America.

RoadOne is committed to serving the changing logistics and transportation service needs of customers throughout North America.  This vision of consistently offering diversified service offerings means that RoadOne will grow and innovate to help customers meet not only their business requirements but also increase the satisfaction of their customers.  www.roadone.com

RoadOne Places the Focus on S3

American Journal of TransportationSeptember 23, 2013
RoadOne places the focus on S3
RoadOne’s strategy is to be a new kind of trucking company – a full service logistics business built around the S3 concept: ‘Single Source Solution.’

Launched January 2013 by Boston area industry veterans Ken Kellaway and David McLaughlin, RoadOne IntermodaLogistics is one of a new breed of full service trucking companies that is dedicated to offering customers integrated, high-value transportation and logistics services. With a suite of comprehensive services and key e-commerce connections, RoadOne offers customized solutions that deliver supply chain improvements that address today’s economic challenges, such as greater efficiencies, better inventory management, and speed to market.

Ken Kellaway, President & CEO, of RoadOne, says the “single source solution – S3” concept is built around tailoring an array of intermodal and logistics services to fit the customer’s needs, whether those needs are regional truckload or international and domestic intermodal services ranging throughout North America. For example, “Hannaford Supermarkets, a Northeast grocery chain with nearly 200- stores, has signed with us to handle their warehouse operations and local delivery to all retail locations. This provides them with greater visibility to their inbound product shipments resulting in better inventory management and customer satisfaction at the store level,” Kellaway remarked.

RoadOne has also inked an exclusive agreement with Disney Stores to provide import container deliveries from port and rail ramp locations throughout the U.S. As Kellaway noted, “Disney signed with us due to our extensive national network and ability to provide fast cycle times and on-time delivery for optimal supply chain performance.” Other national RoadOne clients using their single source services include: Hapag Lloyd, Staples, BJ’s Wholesale, Ikea, and Union Pacific Railroad.
The Randolph, MA-based logistics provider has been built from the “road up” to be a full service intermodal company whose services include everything from container drayage, dedicated trucking, transloading to warehouse management for a diversified client base that includes: ocean carriers, railroads, third party logistics providers, and BCOs (beneficial cargo owners).

RoadOne IntermodaLogistics, with over 1,000-trucks, 40-container terminal locations, and 60-million sq/ft of warehouse capacity spread across 100-warehouse locations in North America, is positioned to offer customers flexible, scalable end-to-end freight handling solutions throughout the U.S.

RoadOne Suite of Services

At the core of RoadOne’s North American service portfolio is intermodal trucking. The company provides domestic and international container drayage services at all major rail ramps and interchanges, and ports. RoadOne addresses the fluctuating chassis market by offering global shippers customized chassis programs that meet their specific needs.
Secure, customs bonded container terminal services and domestic trailer pool management including the critical and often overlooked M&R (maintenance and repair) is available nationwide.
RoadOne’s truckload services range from regional, common and contract, dedicated fleet programs, and retail delivery. These services are customized to meet the customer’s unique needs, as was the case with Hannaford.

Affiliate E*Fill America offers compatible services including 100 warehouse locations nationwide with a variety of distribution and value added services such as transloading, cross docking, and fulfillment.

September 23, 2013
Tying all of these services together is RoadOne’s robust, integrated technology platform, Tru-Vision, which provides end-to-end supply chain visibility with event and exception management. Web-based or via EDI connection, users access the system to manage freight in transit, as well as pay invoices and create customized reports.

Building for the Future

RoadOne has ambitious plans for future growth to fill out their ‘single source’ concept. Along with expanding their dedicated fleet and adding more terminals, they are addressing today’s trucking industry challenges by launching a Green Fleet Driver Program. This will assist RoadOne owner – operator drivers with the purchase of newer, more environmentally friendly trucks. The program features an attractive lease to buy program with competitive pricing. Innovative, ongoing programs such as Green Fleet will be used by RoadOne to advance driver recruitment.

Another new development is the establishment of a new agent-based business model with QLS Logistic Services, a RoadOne affiliate. QLS recently acquired US Intermodal, Inc., an intermodal trucking and drayage company, which will serve as the foundation of a new nationwide agent drayage and brokerage business, US IntermodaLogistics. This new agent model will effectively expand RoadOne’s North American intermodal service network by broadening the company’s reach into new markets, as well as supporting established markets. Currently, US IntermodaLogistics has locations in Chicago, Norfolk and New Jersey.

To support ambitious growth and prosperity, a company needs a strong foundation. At RoadOne IntermodaLogistics, Kellaway believes that their strength is based on their philosophy of reliability, tenacity, safety, integrity, and loyalty, which is at the center of their single source vision.

Wheels on the ground: a family tradition

RoadOne CEO Ken Kellaway is no stranger to the logistics business. In 1935, Arthur Kellaway, his grandfather, started Kellaway Warehouse Corporation just outside of Boston. He was joined by his son, Ken Sr. who expanded the business throughout the 1960s and 70s. In 1987, Ken Kellaway, Jr. entered the business and expanded their trucking, distribution, and related intermodal service portfolio under the Kellaway Group name. This effort of linking warehousing and trucking services soon made Kellaway the house carrier for many major companies in the Northeast.

By developing strong links with steamship lines, Kellaway refined the Group’s strategy and concentrated on the international container transportation segment of the market. Their success soon made the Kellaway Group the largest privately held intermodal provider in the Northeast.

In 1993, David McLaughlin joined Kellaway as President of Kellaway Intermodal & Distribution Systems. He and Ken Kellaway are still partners today. Both Ken and David are graduates of the highly respected Babson College.

Kellaway Intermodal & Distribution Systems eventually became one of the founding companies of RoadLink, where Kellaway and McLaughlin served on the leadership team for over twelve years.

With the launch of RoadOne, Kellaway and McLaughlin Sr. are back in Boston where it all began and are adding a new generation to their ranks. They’re joined by their sons, Kendall Kellaway and David McLaughlin Jr., who are also graduates of Babson.
www.roadone.com

RoadOne IntermodaLogistics Strengthens Leadership Team

RoadOne IntermodaLogistics Strengthens Leadership Team

–       Addition of four VPs to executive team positions business for long-term growth –

Randolph, Massachusetts, September 9, 2013 – RoadOne IntermodaLogistics, a leading single source intermodal, distribution, and logistics services company, announces today the appointment of a new, industry-leading executive team to position RoadOne for strong, continuous growth.

The new team includes:

  • Larry Cuddy, Vice President Commercial Strategy & Client Solutions:  Larry is an accomplished logistics and supply chain professional with a strong 20 year history in business development, solutions design, transportation management, and IT solutions.  Prior to RoadOne, Larry was Sr. Director, Client Solutions Supply Chain at Estes Express Lines, Inc.  His experience also includes senior sales positions at 3PD, Exel and Velocity Express.
  • Vincent Costagno, Vice President of Sales:  In this marketing role, Vince will be responsible for client development in the Midwest region and select national accounts.  He comes to RoadOne with a wide range of transportation and logistics experience having held key positions at CSX Intermodal, C&K Trucking, and Roadlink USA.
  • Mark Pontarelli, Vice President of Agent Development:  Will drive the expansion of agent partner solutions at RoadOne’s new agent-based affiliate, QLS Logistic Services and its agent drayage business, US IntermodaLogistics.  Most recently, Mark was owner of US Intermodal, Inc. where he established agent-based terminals in New Jersey, Norfolk, and Chicago.  Prior experience includes managing the Midwest intermodal operations for MOL and OOCL.
  • Paul Sullivan, Vice President of Finance:  Paul will lead the finance, accounting and human resource activities at RoadOne.  He brings a strong, diverse financial background to the company, as well as 10 years of warehousing and distribution financial management at Americold Logistics.

“I am thrilled to welcome these outstanding executives to the RoadOne IntermodaLogistics Leadership Team.  Their exceptional strength and industry experience will play a key role in achieving our ambitious growth plans and creating unique single source solutions for our clients,” said Ken Kellaway, CEO, RoadOne IntermodaLogistics.

RoadOne IntermodaLogistics, based in Boston, was launched January 2013 by industry veterans Ken Kellaway and David McLaughlin.  The Kellaway – McLaughlin leadership team was established in 1993 when they joined forces to run Kellaway Intermodal & Distribution Systems.  This strong management partnership continues today with the recent launch of RoadOne IntermodaLogistics.

RoadOne IntermodaLogistics

RoadOne delivers a comprehensive single source logistics solution to customers by providing high quality, reliable port and rail container drayage, terminal operations, dedicated truckload solutions, transloading, warehousing and distribution solutions nationwide. RoadOne operates in over 40 locations with 1,000 drayage tractors throughout key intermodal locations across North America.

RoadOne is committed to serving the changing logistics and transportation service needs of customers throughout North America.  This vision of consistently offering diversified service offerings means that RoadOne will grow and innovate to help customers meet not only their business requirements but also increase the satisfaction of their customers. www.roadone.com

US Intermodal

RoadOne IntermodaLogistics Expands Nationwide Intermodal Network with Agent-based Business Model

QLS Logistic Services, a RoadOne affiliate, acquires US Intermodal, Inc. which will serve as foundation for new agent-based affiliate US IntermodaLogistics

Randolph, Massachusetts, September 16, 2013
RoadOne IntermodaLogistics, a leading single source intermodal, distribution, and logistics services company, announces today that its affiliate, QLS Logistic Services, LLC, has acquired US Intermodal, Inc., an intermodal trucking and drayage business, which will function as the core of a new, coast-to-coast agent drayage and brokerage business US IntermodaLogistics. This new agent-based business currently has locations in Chicago, Norfolk and New Jersey.

Mark Pontarelli will fill the role of Vice President of Agent Partner Solutions for US IntermodaLogistics. He will be responsible for establishing and building a new agent network throughout the U.S. Most recently, Mark was owner of US Intermodal, Inc. where he established agent-based intermodal drayage services in key market hubs.

David McLaughlin, Chief Operating Officer, RoadOne IntermodaLogistics, said “We’re committed to providing our agent partners with high quality support and resources to ensure their success. US IntermodaLogistics will purchase shared services from RoadOne including: sales and marketing support, financial assistance, insurance, equipment purchasing programs, and back office support.”

“This new agent model provides the opportunity to effectively expand our current ‘company store’ intermodal drayage service by increasing our reach into new markets, as well as supporting established markets. We believe this is a further indication of our commitment to being a single source solution for customers,” said Ken Kellaway, CEO of RoadOne IntermodaLogistics.

RoadOne IntermodaLogistics, based in Boston, was launched January 2013 by industry veterans Ken Kellaway and David McLaughlin. The Kellaway-McLaughlin leadership team was established in 1993 when they joined forces to run Kellaway Intermodal & Distribution Systems. This strong management partnership continues today with the recent launch of RoadOne IntermodaLogistics.

RoadOne IntermodaLogistics

RoadOne delivers a comprehensive single source logistics solution to customers by providing high quality, reliable port and rail container drayage, terminal operations, dedicated truckload solutions, transloading, warehousing and distribution solutions nationwide. RoadOne operates in over 40 locations with 1,000 drayage tractors throughout key intermodal locations across North America.

RoadOne is committed to serving the changing logistics and transportation service needs of customers throughout North America. This vision of consistently offering diversified service offerings means that RoadOne will grow and innovate to help customers meet not only their business requirements but also increase the satisfaction of their customers.
For more information: www.roadone.com

About US IntermodaLogistics

US IntermodaLogistics provides reliable intermodal trucking and drayage services in the New York-New Jersey metro area, Virginia, and Chicago markets. Local shipment delivery is offered within a 1000 mile radius of terminals. Competitive rates, superior service, and dedicated, friendly customer support are key features of US IntermodaLogistics.

The company’s management team has extensive experience with JIT trucking, drayage deliveries, international and domestic hazardous material shipments, and refrigerated cargo.

For more information: www.usintermodal.net

Ocean Carriers’ Exit Puts Stress on Inland Chassis Supply

Ocean Carriers’ Exit Puts Stress on Inland Chassis Supply
The Journal of Commerce
Bill Mongelluzzo, Senior Editor | Sept. 19, 2013

A prominent trucking industry executive warned that operational changes at rail ramps and other inland locations because of the accelerating exit of ocean carriers from the chassis business are placing added stress on the fragile intermodal drayage industry.

Ken Kellaway, president and CEO of RoadOne Intermodal Logistics, which has drayage operations across the country, told The Journal of Commerce’s Inland Distribution Conference on Sept. 18 that intermodal drayage companies are already experiencing longer turn times and additional costs under the new chassis regime.

Maersk Line shocked the U.S. transportation industry in 2009 when it announced that it would no longer directly provide chassis to truckers, forwarders and cargo interests because of increasing maintenance costs and liability risks.

Most other container lines since then have either divested themselves of many of their chassis, or announced their intentions to do so, thus bringing to an end the 50-year-old tradition of carrier-provided chassis.

Philip Wojcik, president and CEO of Consolidated Chassis Management, the equipment operating affiliate of the Ocean Carrier Equipment Management Association, noted that since 2009 carriers have made 400 announcements that they would cease to provide chassis in 42 seaport and inland cities.

While the new chassis regime has caused problems at marine terminals, inland rail ramps are also experiencing their own unique problems because most railyards today maintain “wheeled” operations in which containers are stored on chassis.

As carrier-owned chassis are replaced with chassis provided by pools, cooperatives and leasing companies, railroads will gradually shift to “stacked” operations in which chassis are stored four or five high on ground, similar to the system found at many marine terminals.

Kellaway said intermodal drayage operators view this development as bothersome and costly as the truck turn time for grounded operations is 15 to 45 minutes longer than at wheeled facilities. Also, storage of chassis at off-site equipment pool facilities creates additional trips for truckers, he said.

Additionally, when containers must be “flipped” from one chassis to another or transferred between equipment pools, more costs are created that someone has to pay for. While these new costs and added delays reverberate throughout the intermodal transportation industry, trucking can not assume a disproportionate share of the problems.

“This fragile industry cannot absorb other sectors’ challenges,” Kellaway said.

Railroads understand that they will have to make the transition from wheeled to grounded operations at their facilities, but Brant Ring, assistant vice president intermodal terminal operations at BNSF, said this won’t happen overnight.

Rather, as railroads build new facilities or expand existing yards, they will consider designing them for grounded operations, and will purchase the lift equipment that will be needed. “The transition to grounded will be incremental,” he said.

Another fear shared by the transportation industry is that a number of the chassis that carriers are selling to pool operators and third-party providers are old and in need of repair. “I am concerned about the condition of the equipment,” said Paul Dean, director of intermodal equipment/maintenance at Norfolk Southern Railway.

The chassis often feature non-radial-type tires that are prone to blowouts, lights that need replacement and other residuals of wear and tear that will eventually cause mishaps or result in fines, Dean said.

Wojcik said the condition of the chassis fleets vary with the operators. CCM, he said, pays close attention to M&R requirements, and as a result only 3 percent of its chassis are out of service. “That’s better than the entire industry,” he said.

However, some factors in the chassis regime have yet to change. The most important feature of the new chassis regime at inland locations is that railroads will continue to sign their intermodal contracts with the ocean carriers as they do now. Those contracts will include a provision for adequate chassis that will then be implemented by the pools or leasing companies.

“The chassis are still there. They haven’t vanished. It’s just the relationships that have changed,” Wojcik said.