Follow us on Twitter!
Blog Header Logo
DG&A's Transportation Consulting Blog
Subscribe to this list via RSS Blog posts tagged in capacity shortage


As we all know, freight capacity throughout North America is tightening. A shortage of drivers, new government regulations and rising fleet costs are making it increasingly challenging for trucking companies to operate their fleets. As a result, carriers are being selective in terms of the shippers for whom they will offer their fleet capacity.

Smart carriers are ranking their customers on the basis of profitability and ease of serving. Shippers must now make their companies and their freight attractive to their carriers to secure the capacity they need. These are some things they can do.

Run a Clean Operation

Simply put, shippers need to be organized. As carriers enter their customers’ yards, they want to find an available dock door and they want the freight and paperwork to be ready for pick-up. They don’t want to have to wait as other carriers to block their way. They also don’t want their customers to call them back 30 minutes after they left the yard to pick up an extra skid or two. In other words, trucking companies want consistency, reliability and predictability. They want to work with shippers that are efficient and keep their costs down.

Hits: 1008
Continue reading 0 Comments

In a recent Stifel report, it was noted that the “mother” of all capacity shortages is expected to hit the United States in 2017 as a series of government regulations reduce the supply of fleet equipment by five to fifteen percent. Despite the efforts of carriers to raise pay, upgrade facilities and improve the lifestyle of drivers, annual turnover stubbornly remains at close to one hundred percent in many fleets. On the rail side, a huge upswing in the movement of energy products by this mode has had a deleterious effect on intermodal capacity and service. Wise shippers realize that trying to secure carriers on the spot market is a risky endeavor since this leaves them open to capacity shortages and rate volatility.

What can your company do to protect itself if there are capacity shortfalls?

Is your company ready for even tighter freight capacity? Will the integrity of your company’s supply chain be maintained in this ever-changing environment? What can your company do to protect itself if there are capacity shortfalls?

1. Bring your top performing carriers under contract

An important first step is to view your major carriers as business partners. As such, it makes good sense to negotiate formal multi-year contracts with capacity commitments and service guarantees. As you engage in these types of discussions, find out how your business fits within the parameters of their operation. Does your freight move on their primary traffic lanes? Do they have head haul or back haul in the reverse direction? Are you a valued customer?

Hits: 1596
Continue reading 0 Comments

Most Recent Posts


Tag Cloud

Harper Davos speech freight bid home delibery Right Shoring Canadian freight market Leadership Entrepreneur CSA Load broker MPG Business skills Swift Werner routing guide Infrastructure 2014 economic forecast freight broker Adrian Gonzalez Canadian Transportation & Logistics Trucking Bobby Harris Social Media in Transportation Celadon Transportation Broker Keystone Pipeline Consulting Transportation service Freight Shuttle System Surety bond professional drivers FMS Life Lessons freight transportation in 2011 FMCSA Education Sales Management autonomous vehicles dimensional pricing Freight Carriers Association of Canada LinkedIn Tracy Matura TMS Blogging Freight Driving for Profit RFP robotics small business BlueGrace Logistics Regina Yield Improvement 2013 Economic Forecast capacity shortage freight transportation conference Career Advice Truckload Rotman School of Business energy efficiency Cleveland Cavaliers TransForce Toronto shipping carrier conference freight forwarders FCA Conway CSX Rail NMFC 2014 freight forecast coaching Transcom Fleet Leasing Stephen Harper Trade Vision ProMiles 2015 Economic Forecast Derek Singleton truck driver shipper-carrier contracts Search engine optimization Deferred Packaging Facebook TMP Worldwide Freight Capacity EBOR Transportation Buying Trends Survey Crisis management David Tuttle US Auto Sales Job satisfaction automation freight transportation APL CSA scores freight payment freight audit freight audit Omni Channel LTL Railway Association of Canada BNSF Emergent Strategy UP Retail transportation buying trucking companies selling trucking companies freight costs Canadian economy Training New Hires customer engagement freight rate increases Canada's global strategy President Obama Inbound Transportation Finance and Transportation Transplace Training 3PLTL FCPC drones Otto freight payment Canada U.S. trade Carriers $75000 bond FuelQuest LCV's Canada-U.S. trade agreement YRC Warehousing CRM NAFTA economy US Election Politics University of Tennessee bulk shipping the future of transportation shipper-carrier roundtable Business Strategy Climate Change CN Rail CP Rail shipping wine Canada Crude Oil by Rail driverless business start-up Distribution transportation news Freight contracts truck drivers Rate per Mile CITA Shipper Pulse Survey marketing driver JB Hunt Associates dynamic pricing Dedicated Contract Carriage hiring process broker bonds Canadian truckers Twitter freight agreements Business Transformation Strategy IANA employee termination Sales Training 2014 freight volumes CN Horizontal Supply Chain Collaboration ShipMax Ferromex Doug Nix Muhammad Ali financial management derailments freight RFP cheap oil driver shortages Success Trump Global Transportation Hub Donald Trump US Economy Masters in Logistics transportation newspaper US Manufacturing Transloading solutions provider broker security US Housing Market Hudsons Bay Company Amazon Driver Shortage Freight Rates Colilers International Spanx New York Times pipelines Dan Goodwill KCS Packaging Success failure entrepreneur capacity shortages Comey Software Advice intermodal Fire Phone consumer centric Management mentoring fuel surcharge Accessorial Charges MBA Microsoft Dedicated Trucking Retail NS Freight Recession Doug Davis future of freight industry 3PL Map-21 Failure Reshoring peak season trucking company acquisitions Scott Monty USA Truck Social Media Loblaw Schneider Logistics economic forecasts for 2012 shipper-carrier collaboration NCC network optimization freight cost savings 360ideaspace rail safety Global experience 2012 Transportation Business Strategies. Jugaad Wal-Mart e-commerce Shipper transportation audit Transport Capital Partners (TCP) tanker cars Freight Management

Blog Archives