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March 2 2020

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106 The Journal of Commerce | March 2 2020 Surface Transportation Dependable Supply Chain Services is the parent company of DHE, along with separate drayage, warehousing, truckload, forwarding, and logistics units. As a freight forwarder with more than 2 million square feet of distri- bution and warehousing space near California ports, Dependable is embed- ded in that international inland move. "Everything that gets imported comes into Southern California, and instead of staying on a boat to go north to Tacoma, there's a lot that gets devanned here and goes north over the road," Finney said. Pen- insula doesn't handle drayage, but its general freight LTL business has benefited from the growth of imports moved through the ports of Seattle and Tacoma. The number of TEU moved through the Northwest Seaport Alliance ports of Seattle and Tacoma, Washington, increased 10.9 percent from 2014 through 2019, hitting nearly 1.4 million containers last year, according to data from PIERS, a sister product of The Journal of Commerce within IHS Markit. Volumes dipped 6.9 percent at Seattle-Tacoma last year after rising 7.7 percent in 2018. "We get a little bit of every- thing," said Brenett Waltos, vice president of sales and marketing for Peninsula, based in Federal Way, Washington. Although much of that freight is domestic, "we deal with a number of freight forwarders that are bringing in imports by different modes," he said. "And some of our accounts are retail customers that require a high level of service." Searching for freight Last year's slowdown in the US manufacturing sector, which some say hasn't abated much in 2020, has left LTL carriers looking for new sources of freight, whether by seeking more volume from existing customers, dabbling in the truckload spot market, expanding terminal networks and doubling down on freight lane density, or partnering with other LTL operators. The shutdown last year of north- eastern LTL carrier New England Motor Freight (NEMF) also unraveled some partnerships and led to some regional realignments. Former NEMF partner Oak Harbor Freight Line, of Auburn, Washington, teamed up with A. Duie Pyle of West Chester, Pennsylvania, in a cross-country LTL alliance, giving Pyle a West Coast presence for the first time. In early 2020, "if there's too much freight out there, it's on somebody else's truck," Finney said. "Business is not robust." That makes this, he believes, a particularly good moment to launch an LTL part- nership. "We can take on our new partnership while freight is down a little, and that allows us to focus on the relationship and on getting addi- tional freight," he said. For shippers, the expanded ser- vice will be seamless, Finney and Waltos said, with one bill of lading and one point of customer service. "It will be a one-stop shop to the customer, with no difference if we're delivering it for Peninsula or they're delivering for us," said Finney. Pen- insula has similar arrangements with Averitt Express in the Southeast and Pitt Ohio in the Mid-Atlantic. "We do each handle our own pricing for our own areas of origin, but certainly we'll be doing collabo- rative efforts on national accounts providing a complete solution," said Finney. "On our end, that can incor- porate the ocean voyage, drayage, warehousing, and logistics solution." DHE will direct freight bound for the Pacific Northwest to its Sacramento, California, terminal, which will consolidate and load direct tractor-trailers to Peninsula. "We will run those schedules to our Full-coast coverage LTL truckers DHE, Peninsula partner on US West Coast By William B. Cassidy REGIONAL LESS-THAN-TRUCKLOAD (LTL) carriers Dependable Highway Express (DHE) and Peninsula Truck Lines are partnering to offer full West Coast service in an import- rich region that includes the Los Angeles–Long Beach and Seattle- Tacoma port complexes. DHE, with 14 terminals, operates in California, Arizona, and Nevada; Peninsula has 19 terminals in Wash- ington, Oregon, and Idaho. According to the latest data on file with US reg- ulators, DHE has about 470 tractors and drivers, and Peninsula 310. The alliance extends the reach of both carriers at a time when LTL carriers, along with other trucking companies, are hungry for freight and partnerships between regional carriers are shifting. Peninsula until recently partnered with Mountain Valley Express, a Stockton, California-based LTL company acquired last year by package and delivery firm GLS. "This is going to allow us to be a full-service provider for our custom- ers, a full West Coast carrier, with Peninsula as our partner, rather than an add-on carrier for the Southwest," Joe Finney, chief operating officer for Dependable Supply Chain Ser- vices, told The Journal of Commerce Feb. 3. In addition to pure domestic freight, "this will help set up the international inland move," he said. Both companies, founded in the 1950s, are mid-sized LTL operators, ranked 44th (DHE) and 46th (Pen- insula) on the list of Top 50 US and Canadian LTL trucking companies prepared for The Journal of Com- merce annually by SJ Consulting Group. DHE had approximately $85 million in revenue in 2018, while Peninsula had $72 million, according to SJ Consulting estimates. International freight forwarder DHE operates 14 LTL terminals, in California, Arizona, and Nevada, while Peninsula has 19 terminals in Washington, Oregon, and Idaho. Noa Siti Eliyahu / "It's a heck of a long way between population centers when you get West."

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