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LaserShip, OnTrac open regional sort hub in New Jersey

Hub near Philadelphia to handle next-day ground deliveries from Maine to Virginia

LaserShip-OnTrac opens north-south sortation hub in south Jersey (Photo: LaserShip)

Regional parcel delivery carriers LaserShip and OnTrac, a combined entity which earlier this year launched a transcontinental ground delivery network, have opened a sortation hub in southern New Jersey to support next-day deliveries from southern Maine to southern Virginia.

The 327,000 square foot facility, located in Logan Township near Philadelphia, will provide ground residential deliveries at deeply discounted rates, according to a person familiar with the matter. Deliveries will be faster and at better prices than what is currently offered by the national delivery carriers, the person said.

The combined entity already operates a hub in south Brunswick, New Jersey, which supports transcontinental operations that were launched in August. The transcontinental service connects LaserTrac’s sizable Eastern system, which extends as far west as Indianapolis and Little Rock, Arkansas, with OnTrac’s West Coast network, which covers all of California and goes as far east as Colorado.

The combined entity plans to expand into Texas during the first quarter of 2023 and will eventually enter Chicago. A time frame for the Chicago expansion hasn’t been disclosed. 

Once the Chicago market is developed, the entity said it will cover about 85% of the U.S. population with day-definite deliveries. Service between New Jersey and California will operate within a three-to-four-day window.

It is not clear when, or even if, the entity will fill out the rest of the country, which consists of relatively sparsely populated states in the Upper Midwest.

Vienna, Virginia-based LaserShip’s parent, private equity firm American Securities LLC, acquired Chandler, Arizona-based OnTrac in October 2021 for $1.3 billion. The intent when the deal was announced was to combine the companies to create a new national parcel-delivery network.

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Mark Solomon

Formerly the Executive Editor at DC Velocity, Mark Solomon joined FreightWaves as Managing Editor of Freight Markets. Solomon began his journalistic career in 1982 at Traffic World magazine, ran his own public relations firm (Media Based Solutions) from 1994 to 2008, and has been at DC Velocity since then. Over the course of his career, Solomon has covered nearly the whole gamut of the transportation and logistics industry, including trucking, railroads, maritime, 3PLs, and regulatory issues. Solomon witnessed and narrated the rise of Amazon and XPO Logistics and the shift of the U.S. Postal Service from a mail-focused service to parcel, as well as the exponential, e-commerce-driven growth of warehouse square footage and omnichannel fulfillment.