While other truckload carriers are still laying up capacity to adjust to lower demand during the recession, Con-way Truckload will shift capacity to double the number of trucks dedicated to short-haul regional service next year, after successfully testing regional service in 10 states.
The company’s goal is to have at least 1,000 trucks dedicated to nationwide regional service by 2011.
The decision reflects the shortening of shippers’ distribution networks, as more companies position freight closer to customers to reduce transportation costs.
Starting in January, Con-way Truckload Regional will add 300 trucks to a fleet of 300 drivers. The short-haul division hauls shipments of less than 600 miles and offers cartage for shipments traveling less than 100 miles.
The company’s plans include “significant” expansion in Missouri, Kansas, Iowa, Nebraska, Wisconsin, Minnesota, Illinois, Indiana, Ohio and Kentucky. It also plans to add drayage service to its regional package.
Con-way Truckload introduced its regional service in September, after completing an 18-month pilot test.
“Con-way Truckload Regional has been a great success, and we’ve seen a clear demand for this offering in a growing number of regions,” said Herb Schmidt, president of Con-way Truckload, with headquarters in Joplin, Mo.
“We see a tremendous opportunity for strategic growth.”
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