CenturyClass
Lead-side Recruit
- Credits
- 0
took this from the DSR newsletter..now quit crying about subservice. lol
Question of the Month: Why do we use so many subservice carriers?
The use of highway substitute carriers is necessary to provide on time service to our customers and controlling costs in the Linehaul network. At Con-way Frei Highway Subservice (HSS) is utilized in two different types of lanes, Exclusive and Supplemental. Exclusive HSS lanes typically provide service connecting service centers in the East to those in the West. They are used to provide transit times which would be impossible to achieve in the existing Con-way Freight relay network. Keeping this freight on Subservice providers allows us to keep these long lanes balanced, we never run empty and our drivers can continue to return home every day. Supplemental HSS is utilized to balance chronically imbalanced lanes which exist in our network, saving us 520,000 miles per week. If we moved the supplemental HSS to our own fleet Linehaul, we would increase miles by 27,000,000 per year at a cost of approximately $1.90 per mile. This substantial increase in costs would put Con-way Freight at a cost disadvantage in a highly competitive market place. The most critical part of moving freight off of HSS carriers is driving effective revenues on the chronically empty lanes through identification of the key lanes, and understanding the costs coverage, market potential and subsequent revenue needed to move these backhaul lanes at a profitable level.
Question of the Month: Why do we use so many subservice carriers?
The use of highway substitute carriers is necessary to provide on time service to our customers and controlling costs in the Linehaul network. At Con-way Frei Highway Subservice (HSS) is utilized in two different types of lanes, Exclusive and Supplemental. Exclusive HSS lanes typically provide service connecting service centers in the East to those in the West. They are used to provide transit times which would be impossible to achieve in the existing Con-way Freight relay network. Keeping this freight on Subservice providers allows us to keep these long lanes balanced, we never run empty and our drivers can continue to return home every day. Supplemental HSS is utilized to balance chronically imbalanced lanes which exist in our network, saving us 520,000 miles per week. If we moved the supplemental HSS to our own fleet Linehaul, we would increase miles by 27,000,000 per year at a cost of approximately $1.90 per mile. This substantial increase in costs would put Con-way Freight at a cost disadvantage in a highly competitive market place. The most critical part of moving freight off of HSS carriers is driving effective revenues on the chronically empty lanes through identification of the key lanes, and understanding the costs coverage, market potential and subsequent revenue needed to move these backhaul lanes at a profitable level.
