The strong surge in revenue that less-than-truckload carriers enjoyed in 2014 stalled in 2015 and 2016, as weak demand and low fuel surcharges dragged down American LTL trucking’s top line. In Canada, low oil prices suppressed freight volumes in some western provinces while a weak Canadian dollar did not ignite exports from the major manufacturing provinces, Ontario and Quebec.
There is no quick fix for a poorly managed Freight Transportation department. Saving money on freight costs takes leadership, discipline, hard work and follow through. The leadership team needs to view freight transportation as a competitive weapon and constantly monitor results to drive performance.
Driverless vehicles will change the nature of the freight industry. The challenges in finding qualified drivers, the hours of service regulations and the fact that drivers can represent one third of the cost of moving a truck will make the economics for moving freight in driverless vehicles very compelling.
At this point in time, there is ample competition in some sectors and not so much in others. It is not quite time to call in the Competition Bureau but shippers need to be alert to the competitive factors in each market and search out the available options (i.e. modes and carriers), to keep their freight costs in line with market levels.
It was sad to read that Meyers Transport, a Canadian motor carrier that has served the needs of shippers in Ontario for 90 years, closed its doors on January 20. This news caused me to reflect on the changes taking place in the Canadian freight transportation industry.
As we enter a New Year, many people create a set of resolutions to burn off a few pounds, to quit smoking or to achieve whatever goals are meaningful to them. On a professional level, this is a time for smart shippers to set in motion a series of resolutions to improve their company’s freight operations and their personal career trajectory. Here are a few to consider.
The subject of online freight bids and internet freight auctions came up a few times at the Surface Transportation Summit that took place in Toronto on October 13. The carriers that raised this topic spoke of the high volume…
The first blog in this series looked at the money saving opportunities for organizations that take control of Inbound Transportation. This blog will outline a series of steps that need to be taken to make this happen.