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Hub Group expands intermodal cross

Jul 29, 2023

The move increases competition with Canadian Pacific Kansas City’s single-line service to and from Mexico

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OAK BROOK, Ill. — Hub Group is expanding its intermodal service to include inbound parts moves to all auto assembly plants in North America, with a focus on cross-border shipments to and from Mexico.

“We are extremely excited about the growth opportunity we have unlocked with our partner, Union Pacific, in the north-south corridor between Mexico, the U.S. and Canada, utilizing the Falcon Premium service product,” Hub Group CEO Phillip Yeager said in a statement on Thursday. “Hub Group continues to expand our capabilities and deliver service, integrity, and innovation to our customers’ supply chains.”

Hub Group will operate utilizing its intermodal expertise and fleet of nearly 50,000 GPS-enabled intermodal 53-foot containers, while leveraging northbound and southbound service including Union Pacific’s Falcon Premium and Eagle Premium services.

Hub Group said the railroad’s new Falcon Premium service provides the fastest transit times from the U.S. and Mexico border to Chicago and Detroit – and the most direct routing entirely by rail between Canada and Mexico.

“We are excited that Hub Group, a long-standing Union Pacific partner, will leverage their growing fleet with our improved premium service product to now serve all of North America’s automotive production facilities,” Kenny Rocker, UP’s executive vice president of marketing and sales, said in a statement.

A Hub spokesman did not immediately return a voicemail seeking information on how many additional plants will be served with the new service.

Hub’s move comes as rival Schneider National shifted its north-south cross-border traffic from UP to Canadian Pacific Kansas City’s new single-line service, Mexico Midwest Express, in May. CPKC says its MMX service offers the fastest transit times between Mexico and Chicago.

The move increases competition with Canadian Pacific Kansas City’s single-line service to and from Mexico