Con-way Freight is expanding its work for Caterpillar Logistics Services, the logistics arm of heavy equipment maker Caterpillar, to cover trucking in more than half the United States as well as business in Mexico and Canada
Starting June 28, the trucking company will be the exclusive LTL provider to Cat Logistics in 27 states, and will haul freight for Cat Logistics in the rest of North America.
Con-way Freight began providing LTL service to Cat Logistics last year, covering 11 states and Mexico. The expansion adds 16 additional states and Canada.
The value of the transaction was not disclosed, but it is a significant deal for Con-way. It not only gives the carrier greater access to Caterpillar, a $32.4 billion manufacturer with global sales and operations, but to more than 65 other companies that contract Cat Logistics to manage their supply chains.
"The opportunity to extend our service into new areas and help more Caterpillar customers is exciting," said John G. Labrie, president of Con-way Freight.
The carrier's agreement with Cat Logistics underscores a growing interdependence between logistics companies and motor carriers to ensure capacity availability.
YRC Worldwide, for example, is changing its strategy to better align its services with its 3PL customers, said Bruce Kennedy, vice president of enterprise strategy.
Con-way Freight is the sister company of Menlo Worldwide Logistics.
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