Trimac, four U.S. bulk carriers form operating alliance

CALGARY (Dec. 22) — Five companies in the ultra-competitive U.S. bulk chemical haulage sector — Trimac Transportation Inc.; Groendyke Transport Inc.; Manfredi Motor Transit Co.; Miller Transporters Inc.; and Superior Carriers Inc. (owner of Superior Carriers Inc. and Central Transport Inc.) — have entered into a cargo pooling arrangement as a way to reduce empty miles.

A pilot program begins in February before taking full effect later in 1999. The companies will use the trial period to hone a revenue-sharing agreement and harmonize information technology systems, said Trimac Transportation president Andrew Zaleski. Trimac Logistics will manage the pilot.

The pact, called the Alliance of Bulktruck Carriers, was formed in order to streamline a bulk chemical distribution system that is inherently difficult for a single, large carrier to make efficient, especially on backhauls.

The deal is subject to U.S. regulatory approval.

“The airlines do this sort of thing with their partnership agreements,” said Zaleski. “There’s no reason truckers can’t do it, too. We think that, given our need to correct the lane imbalances that naturally occur when you haul chemical shipments, this is something that can be advantageous to all parties.”

The five companies are major players in the U.S. chemical haulage market and have combined annualized revenues of approximately $750 million US. Combined, the companies operate 2311 owned power units, 1257 leased-operators, 4993 owned liquid bulk tank trailers, 408 leased liquid bulk tank trailers, 795 dry bulk trailers, 156 terminals in 35 states, and a network of 35 washracks.

The alliance will not extend to Canada, Zaleski said, nor does Trimac plan to pursue a similar arrangement with carriers here.

“This concept was developed specifically for these five companies, which cover large geographic areas in the United States,” he explained. “The Canadian market is much more regionally segmented, which makes the lane-imbalance issue somewhat less acute. Indeed, there is only one national bulk chemical hauler in Canada, and it is us.”