Upgrading Tank Truck Lanes to CLX Intermodal Transportation Solutions
CLX Logistics was sought by a Fortune 10 multinational oil and gas provider to improve trucking lane efficiency in the US Gulf Coast region, with the potential to expand. The Client was interested in introducing intermodal transportation solutions into their operation.
Intermodal transportation is a full-service alternative to existing tank truck operations that can reduce costs and improve operational efficiency on appropriate length routes, using standard bulk shipping containers (aka ISO containers, cargo containers, or intermodal shipping containers).
The planning and agreement process took several months to ensure all details were fully addressed. CLX worked with the Client to fully understand their needs and provide several flexible pricing models and options with complete transparency.
Client Challenges
The Client was experiencing increased shipping volumes that showed no signs of slowing. They were maxing out their trucking capacity and faced skyrocketing operating costs. The Client requested that CLX Logistics review transportation lanes currently used by tanker trucks to see if intermodal transportation solutions could enhance and optimize operations.
CLX analyzed the shipping lanes and identified individual lanes where intermodal transportation routes would have the most impact, increasing capacity and reducing costs.
The CLX Logistics Solution
- Increased Performance: Intermodal transportation services achieve significant performance increases in shipments over 1,000 miles and reach peak efficiency at 2,000+ miles. The transportation ranges needed by the Client were ideal for introducing intermodal solutions and would have a significant positive impact on, efficiency, capacity, and costs.
- Conforming to all Regulations: Their involvement in the oil and gas industry includes a unique set of health and environmental compliance standards and regulations which would be met, as well as their own standards, to which we would fully conform.
- A Seamless Transition: The Client’s stakeholders received complete support from CLX that we would provide a smooth, effective transition to intermodal transportation.
- Continuous Improvement: By maximizing our ISO tank capacity and improved lanes, the Client has freed up and redirected their current tank trucks to shorter, non-intermodal shipping lanes. Capacity is no longer in a dire state, and organic growth is flourishing. We continue to see rapidly increasing volumes from the Client and continue to work with them to find additional models for other locations and support continued growth.
Results to Date
In this case study, CLX began providing intermodal transportation solutions to their Client in spring 2019 with one shipping point and has expanded to 12 by February 2020. A small number of lanes was trialed early in the program, and CLX made on-site visits to all loading and unloading plants to monitor operations and ensure the process was followed to plan. We worked with the Client and their own customers to walk them through loading and unloading ISOs and provided internal benchmarking.
Since the introduction of intermodal transportation, the Client is saving 20% to 30% on each lane as compared to their old tanker truck services. The Client has gone from having no relationship to CLX Logistics to becoming one of our largest domestic clients in less than a year.
About CLX Logistics, LLC
CLX Logistics, LLC is a global provider of comprehensive logistics management, technology and supply chain consulting services to a broad base of industry verticals. The global company, with offices in North America and Europe, is dedicated to solving its customers’ most vital logistics challenges by leveraging a broad range of industry expertise, best-of-breed technology and a personalized, high-touch approach to deliver measurable, sustainable value.
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