Hub Group Announces Joint Venture with EASO
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Jeff Berman
October 8, 2024
Hub Group, a freight transportation and logistics services provider headquartered in Oak Brook, Illinois, has announced the formation of a joint venture with EASO, based in Mexico City. EASO is one of Mexico’s largest intermodal and trucking logistics service providers.
Founded in 1972 by a family-owned leadership team, EASO offers a range of services including intermodal, dedicated truckload transportation, full truckload shipping, and freight forwarding. The company serves the domestic market in Mexico and key logistics hubs in the U.S. through its cross-border intermodal network.
Hub officials explained that this partnership will significantly enhance Hub’s intermodal and transportation solutions business. EASO’s customer base includes well-known companies across various modes of transport, which will help strengthen Hub’s services. As nearshoring continues to drive growth in cross-border trade, the joint venture is expected to maximize Hub’s cross-border service capabilities and create more opportunities for intermodal conversions. The founding family of EASO will lead and manage the joint venture with support from the existing management team and Hub Group.
According to Hub, other key aspects of the joint venture include significant synergies in cross-selling, operational integration, asset utilization, and drayage enhancements. EASO has been expanding its cross-border operations and converting road freight to intermodal transport, leading to a 30% annual growth rate in its intermodal volumes.
“We are thrilled to welcome the EASO team and their customers into the Hub Group family,” said Phil Yeager, President, CEO, and Vice Chairman of Hub Group, in a statement. “This joint venture aligns with our long-term investment strategy and further supports our vision of delivering superior supply chain solutions. The cultural alignment between Hub Group and EASO, along with expanded scale and network in Mexico, will enhance service delivery and bring greater value to our customers.”
Hub Group’s Chief Marketing Officer and Intermodal President Brian Meents told LM that this joint venture presents significant growth opportunities amid the ongoing trend of nearshoring by expanding Hub Group’s presence in Mexico through EASO’s network.
> “We see numerous synergies between the two companies, including cross-selling Mexican domestic and cross-border capabilities to Hub customers, as well as offering Hub services to EASO clients,” Meents said. “In essence, this joint venture greatly expands our end-to-end transportation service scale, broadens our geographic footprint at the border, and creates cross-selling opportunities.”
Meents also highlighted key benefits for Hub’s intermodal shippers from this joint venture, explaining that it significantly increases Hub’s scale in Mexico and strengthens its cross-border logistics services to better serve North American supply chain needs.
> “With more service options, routes, and equipment, this joint venture becomes the largest cross-border and domestic Mexican intermodal provider offering best-in-class cost and service,” he said.
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Source: Logistics Management
