Innovating Supply Chains for Agricultural Exports in the U.S.
- Dec 4, 2024
- 2 min read
The Challenge
Agricultural exporters in the U.S. face numerous challenges, including inefficient inland logistics, high transportation costs, and limited access to global markets. Farmers across the Mid-West often struggle to participate in the export market due to a lack of supply chain solutions.
Frey’s Solution
In collaboration with its logistics partner, Rail Modal Group (RMG), Frey is unlocking an innovative sourcing and inland logistics model that addresses these challenges head-on. By leveraging RMG’s expertise and infrastructure, Frey provides a one-stop logistics solution designed to optimise the movement of agricultural products from the heartland to global markets.
How It Works
RMG facilitates a seamless logistics process, beginning at the customer’s manufacturing or farming facility. The journey includes:
Inland Transport
Products are transported to one of RMG’s strategically located inland terminals, ensuring efficient regional coverage and reduced reliance on long-haul trucking.
Railway Integration
Partnering with class 1 railways, RMG transitions agricultural goods from truck to train, utilising the most advanced rail infrastructure in the U.S.
On-Dock Port Services
From the railway, products are moved directly on-dock at major export hubs such as Los Angeles, Long Beach, Houston, and Seattle. This expedited process ensures minimal delays and streamlined handoffs.
Key Benefits for Customers
Environmental Impact
The solution takes significant truck miles off the road, reducing emissions and contributing to a more sustainable logistics network. This aligns with Frey’s commitment to decarbonising supply chains and supporting the Maersk Growth vision.
Access to Export Markets
By enabling farmers in the Mid-West to connect to global markets, Frey’s model democratises the supply chain, creating opportunities for agricultural producers to compete internationally.
Efficiency and Reliability
The integrated logistics solution offers customers better control and reliability, ensuring their products reach end-users quickly and in optimal condition.
Cost Optimization
By shifting volumes of freight from road to rail, all supply chain participants and end-users benefit from optimised transportation costs while also contributing to a more sustainable supply chain.
The Outcome
Frey and RMG’s partnership is significantly improving supply chains for U.S. agricultural exports. Farmers gain access to global markets, customers experience improved reliability and reduced emissions, and the supply chain as a whole becomes more efficient and sustainable.
Looking Ahead
Frey remains committed to building the strongest possible supply chains by driving innovation, fostering sustainability, and delivering value to all stakeholders. Together with partners like RMG, Frey continues to empower customers with solutions that are not only effective but also environmentally responsible.
This article was originally posted on December 4th, 2024 on freycommodities.com/cases
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