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

b2ap3_thumbnail_dreamstime_xl_49902079.jpg

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: 1047
0
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: 1648
0
Continue reading 0 Comments

Most Recent Posts

Search


Tag Cloud

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

Blog Archives