Dive Brief:
- Schneider National’s intermodal business reported Q4 income from operations rose 5% from a year ago to $18 million, the company said in a Jan. 29 earnings release.
- The carrier credited the gain to volume growth in the segment and lower purchased transportation costs, per the release.
- While Schneider National seeks growth opportunities, belt-tightening, which benefited its intermodal business, remains a priority. EVP and CFO Darrell Campbell said during a call with analysts that the carrier’s cost-savings efforts aided the company in posting a 93.3% operating ratio in intermodal, a 50-basis point improvement from a year ago.
Dive Insight:
Carriers have looked within for ways to control costs to remain profitable as weak freight markets persist. Knight-Swift Transportation Holdings noted that structural cost reductions also benefited its intermodal segment, which nearly hit a breakeven operating ratio in Q4.
Despite a slight improvement in intermodal’s profitability, Schneider National reported the segment’s quarterly revenues fell 3% ($8 million) from a year ago to $268.2 million.
Schneider National has prioritized intermodal growth after noting in 2021 that it sought to double that business by 2030.
Jim Filter, EVP and group president of transportation and logistics, said during the company's call with analysts that the carrier felt “very good about our position,” regarding its competitive dynamic in intermodal.
“We've had seven quarters in a row where we've been able to grow, and we're growing into areas of differentiation,” said Filter, who will become the carrier’s president and CEO on July 1.
He noted Schneider National will continue to leverage its recently launched Fast Track service, which the company said delivers up to two days faster than its competitors on key U.S. and Mexico lanes.
Filter acknowledged the carrier is not immune to market conditions, but said the company can “continue to outperform in our intermodal business.”
