Mid-Year Report on the Freight Transportation Industry

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Mid-Year Report on the Freight Transportation Industry

5 years ago

These are the major developments shaping the freight transportation industry in North America in the second half of 2019. 1. We are entering a period of Economic Uncertainty Despite a climate of record low unemployment levels, low inflation, a positive ISM manufacturing index and other encouraging economic indicators, the US Federal Reserve cut interest […]

Trust Issues

5 years ago

It is hard to believe that a decade has gone by since the Great Recession. Those of us in the freight transportation industry at that time remember the sharp drop in business activity and freight volumes. This encouraged many shippers to conduct multiple freight bids during that period to use (abuse) their freight rate negotiating […]

Freight Bids are Back in 2019

5 years ago

During the wild and woolly 2018, freight bid activity subsided as shippers searched for capacity wherever they could find it. As we have seen, 2018 was an anomaly, a one of a kind. As we pass the mid-point of 2019, the dynamics of the freight market have changed significantly from the prior year. Business […]

The Truckload Freight Industry in North America in 2019

5 years ago

There are approximately 540,000 truckload carriers registered with the Federal Motor Carrier Safety Administration in the United States. These range from 1 truck to 20,000 truck fleets. The majority have less than 20 pieces of equipment in their fleets. These companies generated approximately $350 billion in revenue in 2018. Revenue/Tonnage Growth in 2018 Here […]

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Will Shippers and Carriers ever be able to Trust Each Other?

5 years ago

It is hard to believe that a decade has gone by since the Great Recession. Those of us in the Freight Transportation Industry at that time remember the sharp drop in business activity and freight volumes. This encouraged many shippers to conduct multiple freight bids during that period to use (abuse) their freight rate […]

Engage your Business Partners in your Supply Chain Decisions

6 years ago

Carrier costing models have evolved over the past couple of decades. Freight rates are based on the complete set of transportation-related processes at origin, in transit, and at destination, to serve each client. To effectively manage freight expenses, shippers must have a full understanding of all three elements. Shippers with weak shipping order procedures and […]

Are We Heading Into Another Freight Recession?

6 years ago

Global Economic Outlook Early this month, the International Monetary Fund downgraded its outlook for growth in the United States, Europe, Japan and the overall global economy and pointed to heightened trade tensions as a key reason. U.S. trade talks with China continue without resolution, and there are indications that the rate of Chinese economic growth […]

The Impact of Ecommerce on the Trucking Industry

6 years ago

In February 2019, the American Trucking Research Institute completed an excellent study entitled, E-Commerce Impacts on the Trucking Industry. This blog contains a summary of the highlights of this report. For more information on this topic, download the full report which contains an array of sources that are footnoted throughout the document. E-commerce has been […]

The LTL Freight Industry in the United States and Canada in 2019

6 years ago

The following is my annual report on the state of the LTL Freight Industry in the United States and Canada. The Booming Freight Market of 2018 Strong economic growth and high employment in the United States and Canada, coupled with concerns over US tariffs and trade wars, and high truck utilization rates, propelled freight demand […]

A Ckecklist for CEOs Seeking to Control Freight Costs in 2019

6 years ago

The financial impact of rapidly rising freight costs caught large numbers of CEOs and CFOs by surprise. Many companies were unprepared for the capacity challenges and financial impacts that took place. Economists are predicting solid economic growth in 2019, but not quite at the pace of 2018. What can CEOs do to protect their supply […]