This past week I had the privilege of attending and speaking at the Food and Consumer Products of Canada’s (FCPC) first ever Supply Chain Day. This well-attended event attracted an audience of some of Canada’s largest shippers. The day featured a number of Canada’s leading authorities on logistics and transportation. It also included some fascinating […]
Higher Freight and Fuel Costs could spur more Horizontal Supply Chain Collaboration
On May 25, Dan Goodwill & Associates and the Business Information Group will co-host its third annual Transportation Company Workshop at the Capital Banquet Centre in Toronto. The theme of this year’s conference is “Revitalizing your Transportation Business in an era of Economic Uncertainty and Social Change”. As we begin the second quarter of 2011, […]
It’s still all in the Numbers
14 years ago
Freight rates are on the rise in 2011. These increases are being driven by a broad range of forces including tightening capacity, driver shortages, increasing fuel costs, government regulations, improved carrier costing systems and cost increases. To mitigate these increases, the onus is on shippers to do everything possible to skilfully manage their freight programs. In […]
The latest “State of the Freight” Report Highlights Shippers’ Expectations of Higher Rates
14 years ago
Wolfe Trahan & Co. is a Wall Street research firm that has a strong focus on freight transportation. Each quarter they survey several hundred American shippers in a variety of industries and create an extensive report that documents their findings. The Q1 2011 report, issued in March, summarized data collected towards the end of the […]
Over the past few years, inbound freight management has taken hold like a new weight loss diet, particularly among Canada’s leading retailers. As I visit our clients on an ongoing basis, this subject is one of the hottest topics of discussion. Many of Canada’s leading retailers including Shoppers Drug Mart, Home Depot, Loblaw Companies and […]
This has been a challenging winter. In addition to the earthquakes and tsunamis in New Zealand and Japan, harsh winter storms throughout North America have been disruptive to the smooth flow of people, goods and services for many companies. Looking back over the past few years, hurricanes, volcanic eruptions and tornadoes have also made life […]
<p>There is a direct inverse correlation between increases in crude oil costs and economic activity. According to new report on CBC News, for every $10 increase in the cost per barrel of crude oil, GDP decreases by 0.5% over the next 2 years. Journal of Commerce Economist Mario Moreno estimates that U.S. consumer spending growth, excluding gasoline and other energy, is reduced $11 billion, or one-tenth of a percentage point, for each 17 cents that average gasoline prices for all grades rise above $2.90 a gallon.</p>
<p>Thankfully business conditions are improving in 2011 and freight volumes are more robust than they have been the past couple of years. As reported in a previous blog, freight rates are increasing. Shippers are taking less of a “bunker mentality” and are now looking for ways to optimize their carrier networks.</p>
<p>This past week I read an article entitled, “Not an Automatic Decision”, written by Eric Johnson that appears in the February issue of American Shipper. Since my company has been involved in numerous freight transportation e-procurement projects over the past seven years, I thought I would share my perspectives on this topic.</p>
<p>There are a number of signs that shippers may come under pressure for freight rate increases this year. An economic recovery is under way. Robust retail sales in the latter part of 2010 may result in some inventory restocking in the first quarter of 2011. This may increase the demand side of the curve. If the recovery has legs, there may be higher shipping volumes during the historically stronger second quarter.</p>
