STG’s Jamroz Focuses on Investment in CFS Industry

Chris Jamroz
Chris Jamroz

An accomplished senior executive, Chris Jamroz serves as CEO of St. George Logistics Holdings (STG). The South Kearny, New Jersey-based company is the nation’s leader in the container freight station market, doing business in major ports on both the west and the east coast. Toward the close of 2016, Chris Jamroz was interviewed by the publication American Shipper, where he discussed his undervalued industry.

The container freight station, or CFS, industry accounts for about 15 percent of the total container shipping industry, yet it is highly fragmented. And because the logistics involved in the types of less-than-container loads (LTL) shipped by CFS companies are far more complex and exacting than those that obtain for the full-container-load segment of the industry, barriers to entry are often next to insurmountable.

Mr. Jamroz observed that the fragmentation among the CFS industry’s approximately 1,500 firms is not conducive to attracting investment. To add to the problem, the industry’s costs of operation and increasingly complicated logistics are joined by the volatility of world markets.

Mr. Jamroz believes that his industry is ripe for consolidation and a thorough modernization, and has directed STG along these lines in its broad investment strategies.

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STG Holdings – Efficiency and Capacity in Container Freight Services

 

STG Holdingspic
STG Holdings
Image: stgusa.com

Overseeing STG Holdings, LLC, Chris Jamroz leads the largest network of independent container freight stations (CFS) across North America. In the United States alone, the firm offers warehousing space spanning four million square feet. With Chris Jamroz’ New Jersey-headquartered firm currently expanding its Chicago regional operations, he is overseeing a process of industry consolidation that has encompassed the merger of St. George Logistics and AZ Corporation, subsidiaries of STG Holdings.

Interviewed in late 2016 by American Shipper, Mr. Jamroz singled out a major issue facing the CFS industry as being “critical underinvestment” that has resulted from industry fragmentation and neglect, with the vast majority of freight moves accomplished through full-container-load. This is problematic because global shipping cyclicality, coupled with excess capacity, has resulted in less-than-containerload freight volumes.

The merger of the two major CFS companies, St. George Logistics and AZ Corporation, enables long-needed technology automation that seamlessly integrates two major distribution networks across a combined 32 facilities nationwide.

Because STG operates as a independent outsourcer, it has a unique ability to optimize efficiency through functioning at full capacity. This contrasts with freight forwarders that have less flexibility when it comes to seasonality and cyclicality in shipping volumes. Its unique pay-per-service system ties business volume directly to operating expenses in ways that protect the bottom line.