Schneider National Stock

Schneider National, Inc. provides multimodal surface transportation and logistics solutions in North America. The company offers a scaled portfolio of services and an array of capabilities and resources that leverage artificial intelligence, data science, and analytics to provide innovative solutions that coordinate the timely, safe, and effective movement of customer products. The company offers truckload, intermodal, and logistics services to a diverse customer base throughout the continental U.S., Canada, and Mexico.

The company’s portfolio of complementary service offerings enables it to serve the diverse needs of its customers and to allocate capital in a manner that seeks to maximize returns across all market cycles and economic conditions. The company’s service offerings include transportation of full-truckload freight, which it directly transports utilizing either its company-owned transportation equipment and company drivers, owner-operators, or third-party carriers under contract with it. The company has arrangements with most of the major North American rail carriers to transport freight in containers. The company also provides customized freight movement, transportation equipment, labor, systems, and delivery services tailored to meet individual customer requirements, which typically involve long-term contracts. These arrangements are generally referred to as dedicated services and may include multiple pickups and drops, local deliveries, freight handling, specialized equipment, and freight network optimization. In addition, the company provides comprehensive logistics services with a network of over 50,000 qualified third-party carriers. The company is able to expand capacity through its Power Only offering by leveraging its nationwide trailer pool to match customer demand with third-party carriers.

Segments

The company operates through three segments: Truckload, Intermodal, and Logistics.

Truckload

Over-the-road freight transportation via dry van, bulk, temperature-controlled, and flat-bed trailers across either network or dedicated configurations. Freight is transported and delivered by company-employed drivers in company trucks and by owner-operators with company-owned trailers, and executed through long-haul or regional services, including customized solutions for high-value and time-sensitive loads throughout North America.

Intermodal

Door-to-door container on flat car service through a combination of rail and dray transportation, in association with the company’s rail providers. The company’s intermodal business uses company-owned containers, chassis, and trucks with primarily company dray drivers, augmented by third-party dray capacity.

Logistics

Asset-light freight brokerage (including both traditional brokerage and Power Only services which leverage the company’s nationwide company-owned trailer pools to match third-party capacity with customer demand), supply chain (including 3PL), warehousing, and import/export services. The company’s logistics business provides value-added services using both its assets and third-party capacity, augmented by its trailing assets, to manage and move customers’ freight.

Additionally, the company leases equipment to third parties through its wholly owned subsidiary Schneider Finance, Inc., which is primarily engaged in leasing trucks to owner-operators including, but not limited to, owner-operators with whom it contracts, and it provides insurance for both company drivers and owner-operators through its wholly owned insurance subsidiary.

Strategy

The company’s strategy is based on delivering superior experiences to its customers utilizing an integrated, multimodal approach to provide capacity-oriented solutions centered on delivering customer value and industry-leading service.

Acquisitions

On August 1, 2023, the company completed the acquisition of M&M, a privately held truckload carrier based in West Bridgewater, Massachusetts that primarily provides specialty solutions for retail and manufacturing customers. M&M is a dedicated carrier that complements the company’s growing dedicated operations. The operating results of M&M are reported in dedicated operations as part of the company’s Truckload segment beginning in the third quarter of 2023.

Customers

During the year ended December 31, 2023, the company offered its services to approximately 8,400 customers across its portfolio, including nearly 150 Fortune 500 companies, and 24 of its top 25 customers used services from all three of its reportable segments. The company’s Logistics segment manages over 50,000 qualified carrier relationships.

The company’s revenue is derived from a diverse customer base across a broad end-market footprint, encompassing numerous industries including consumer products, retail, auto, chemicals, electronics and appliances, e-commerce, home improvement, and food and beverage. The company’s diversified revenue mix and customer base allow for revenue and yield management stability throughout the year, despite the fact that many of its customers are also affected by seasonal fluctuations.

Regulation

The company’s operations as a for-hire motor carrier are regulated and licensed by various federal, state, and local government agencies in North America, including the U.S. Department of Transportation (DOT); Federal Motor Carrier Safety Administration (FMCSA); the U.S. Department of Homeland Security (DHS); National Highway Traffic Safety Administration (NHTSA); the United States Environmental Protection Agency (EPA); and Occupational Safety and Health Administration (OSHA).

The company’s driver associates and owner-operators must also comply with carrier qualifications and enacted governmental regulations regarding safety, equipment, and operating methods, including DOT regulation of equipment weight and drug and alcohol testing of its current and prospective driver associates and FMCSA regulation of driver HOS.

In addition, the company is subject to compliance with cargo-security and transportation regulations issued by the Transportation Security Administration and Customs and Border Protection within the DHS, and its cross-border operations in Canada and Mexico are subject to regulation by each of those countries.

The company is also subject to a variety of laws and regulations which are targeted at reducing Greenhouse Gas (GHG) emissions and improving air quality and fuel efficiency at a national level and accelerating a large-scale transition to medium and heavy-duty ZEVs.

History

Schneider National, Inc. was founded in 1935.