Estes bets $56M on cross-border, offshore freight expansion

Estes Express Lines is allocating nearly $56 million to broaden its cross-border and offshore freight network, which encompasses terminals, equipment, and capacity in Canada, Mexico, Alaska, Hawaii, and Puerto Rico. Senior director of offshore and international operations, Alex Peebles, emphasized that the privately held, family-owned carrier is adopting a long-term perspective for its investments rather than allowing present market conditions to guide its strategy.

He stated, "We're looking at all these investments from a long-term horizon and viewpoint perspective and one that's going to help accommodate growth and capacity into all the offshore international markets that we service." Estes, which marks its 95th anniversary this year, is North America's largest privately held less-than-truckload (LTL) freight transportation provider, operating over 300 terminals and service centers across the U.S., Puerto Rico, Alaska, Hawaii, with reach extending to Canada, Mexico, and the Caribbean.

Peebles highlighted that the company's ownership structure provides the flexibility to act swiftly on real estate and equipment opportunities as they arise. He added, "We're not looking past current market conditions, given how fluid everything is right now," but maintained a strategic, long-term outlook. One strategic growth opportunity for Estes is doubling its capacity at the Laredo border gateway in Mexico.

The company currently has coverage through 52 service centers across Mexico, along with local sales personnel in Mexico and Laredo. The recently acquired Laredo facility, undergoing retrofitting, will roughly double Estes' door count from about 40 to roughly 85 or 86 doors, according to Peebles. This expanded facility will include warehouse space and a larger yard, potentially offering additional opportunities beyond traditional cross-docking at the border.

Estes is also planning to enhance its coverage at the Otay Mesa, California, and El Paso-Juarez border crossings, aiming to implement new routings through these gateways by the end of 2026. Currently, Estes serves some freight through these gateways but sees potential for reducing mileage and improving network efficiency. In Canada, Estes is expanding capacity at three key gateway locations.

The company opened a relocated Buffalo, New York, service center in June, quadrupling its previous door count in Buffalo and serving as a vital gateway into Ontario. Additionally, Estes has nearly doubled its Detroit terminal to 139 doors from approximately 70 and doubled capacity at its Fargo, North Dakota, location. Despite an uncertain trade environment between the U.S. and Canada, Estes has recorded significant year-over-year LTL growth in the Canadian market, though customer demand remains cautious.

Tariffs and retaliatory measures affecting commodities like steel, paper, automotive products, and electronics have not yet significantly impacted volumes, though Estes has observed a shift towards smaller, cross-border shipments, benefitting the LTL sector. Peebles noted, "Manufacturers still need products," and are now ordering smaller quantities from cross-border suppliers, aligning with Estes' LTL capabilities.