Siemens Corp. has signed a two-year agreement with trucking giant Consolidated Freightways (CF) that will involve up to $40 million of Siemens' total LTL and expedited freight shipments in the U.S., Canada and Mexico.

According to Mike Brewer, corporate transportation manager at Siemens Shared Services LLC, Siemens will leverage CF's over-the-road service to eliminate supply chain costs, with its greatest savings coming from reduced airfreight costs. Brewer says time-definite freight will run on the ground, where CF's PrimeTime service is more reliable and less expensive than airfreight and is fully guaranteed.

"In the past, Siemens has relied on air freight, and we believe CF's expedited and time-definite services are available in more markets and have proven to be very dependable," Brewer said. "In the end, we are confident supply chain costs will go down without service or transit time being impacted negatively."

About one-third of Siemens shipments typically involve expedited or time-definite deliveries. Siemens routinely ships freight from its more than 300 locations in North America, which means it will tap into CF's 300-terminal network in virtually every metro area in the U.S., Canada and Mexico.