Schneider not pulling out of Canada, analyst says

Though Schneider National is closing its facility in Guelph, Ontario, it is not correct to say that the company is pulling out of Canada, according to an industry analyst.

Green Bay, Wis.-based Schneider recently announced plans to sell its property in Guelph and have no Canada-based operations by the end of March. The company has 150 associates and drivers based in Canada. Company trucks and equipment will be transferred to Schneider’s U.S. operations.

Donald Broughton, principal and managing partner in transportation analysis firm Broughton Capital LLC, Clayton, Mo., said there are several reasons to view the closing as nothing more than an adjustment.

One thing to keep in mind is that the number of employees affected, 150, is large for many companies, but it is a rounding error for a company as large as Schneider.

Schneider reports on its website having 6,342 drivers and 40,000 carriers, and 2,800 owner-operator business relationships.

From his perspective, Broughton said is seemed like Schneider was making adjustments to better manage crossing the U.S.-Canada border. Crossing the U.S.-Canada border is much more involved than checking a few papers, looking in a trailer and going on your way.

Broughton said instead of having their own operation in Canada, Schneider will work with other companies to transport cargos back and forth between the U.S. and Canada, he said.

What’s more, Schneider has a facility in Buffalo, N.Y., which is 90 miles from the Ontario facility. The closing of the Canadian operation may mean more will be hired in Buffalo. LL