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Nov.30, 2015

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SURFACE & DOMESTIC TRANSPORTATION 42 THE JOURNAL OF COMMERCE www.joc.com NOVEMBER 30.2015 IN BRIEF n Ryder Sees Interest Rising in Natural Gas Trucks Ryder System sees continued interest in natural gas vehicles despite the current six- year-low price of diesel. Customers ranging from a dedicated trucking operator to a food service redistributor have ordered natural gas-powered vehicles from the company. Many companies are putting single trucks into service as a test, but others are deploying larger numbers, Miami-based Ryder said. Those customers are taking advantage of Ryder's natural gas vehicle infrastructure, which now includes 18 maintenance facilities in the U.S. In Orange and Fontana, California, Ryder is partnering with Clean Energy to deliver renewable natural gas fuel as both compressed and liquefied natural gas, the vehicle lessor and supply chain company said. The switch is expected to reduce greenhouse gas emissions by 6,300 metric tons per year, the equivalent of eliminating about 1,319 passenger cars. n Canada's Kriska Trucking Makes Cross-Border Push Canada's Kriska Transportation Group is buying TransPro Freight Systems, its second motor carrier in two months, as it pursues cross-border shipping business. The deal follows Kriska's acquisition of Quebec-based JMF Transport (1992) in October. TransPro, in Milton, Ontario, and JMF are truckload carriers. Acquiring truckload carriers is part of Kriska's mission. Kriska Transportation Group was founded last year by Canada trucking operators Kriska Holdings and Mullen Group to take advantage of consolidation in eastern Canada's truckload market. That consolidation has proceeded this year, with companies such as Dicom Transportation Group of Montreal making several acquisitions in Canada and the United States. Canada's largest trucking operator, TransForce, expanded in the U.S. by acquiring Hazen Final Mile. JOC for the Mexico portion and U.S. dollars for the U.S. portion," Gomez Tapia said. "A big advantage for shippers is that they control the cost, service standard and security for both portions and are able to negotiate directly both portions and not rely 100 per- cent on the U.S. carrier," as U.S. shippers have done for decades, he said. Transloading and cross-dock operations will expand as Mexico becomes an even big- ger gateway to the U.S. market, especially if truck capacity in the U.S. tightens, Ryley said. Shippers need to consider building transloading into their cross-border supply chains to avoid higher costs. "Companies shouldn't wait for peak season to build this into their models," he said. "There's a lack of warehousing and yard space in Laredo already. They need to make sure they've got capacity secured for cross-dock before peak season next year. It will be another large boom." Transloading is becoming more com- mon as more international companies set up plants in Mexico, Escarcega said. "The more experienced supply chain managers who work for the foreign companies that have recently established themselves in Mexico are realizing that it is 'OK' to transload at the border," he said. "In the past, more managers thought that transloading would increase the likelihood of freight damage and longer border crossing times, when in fact damage is very low and transit times can be reduced due to the greater accessibility to capacity." For most shippers, "a truck and trailer is a commodity," he said. "They just want their shipments picked up and delivered on time. I think that is becoming more evident with the transloading trend." Shippers may pay some additional fees to transload freight, but the overall cost of transportation is often lower, and at least comparable to direct loads, Ryley and Escarcega said. "When you compare transload ver- sus direct, in almost every case you'll save money on the cross-dock solution," Ryley said. "And your transit times should be almost equivalent." "Most warehouses will charge $100 to $150 for a typical transload of pallet- ized freight," Escarcega said. "That may be waived if the transload is being performed by a 3PL that is also providing the trans- portation on both sides of the border. The operational cost of late deliveries, especially to production lines, far outweighs this. It's been a long time since a customer has told me that they are concerned with the addi- tional costs with transloading." JOC Contact William B. Cassidy at bill.cassidy@ihs.com and follow him on Twitter: @wbcassidy _joc. Source: U.S. Bureau of Transportation Statistics US-MEXICO TRUCK CROSSINGS AT LAREDO, TEXAS n Number of tractor-trailers crossing the border, January-June each year. 600,000 700,000 800,000 900,000 1,000,000 1,100,000 '15 '14 '13 '12 '11 '10 '09 '08 '07 '06 '05 '04 '03 '02 '01

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