Understanding the Canadian Freight Market

<p>While much of the world’s attention has been focused on the “wedding of the century” in London this week, history is about to be made in one of the British Commonwealth’s largest and oldest countries, Canada. If the polls are correct, the National Democratic Party or NDP is expected to finish second, ahead of the Liberal Party (for the first time) and possibly rob the Conservatives of a majority government. We will have to wait until Monday night to see how the vote plays out.</p>

For many years America has been the envy of the world.  Its powerful, diverse economy helped generate consistent freight growth and produce a very vibrant freight industry.  But America’s success ignited an escalation in the value of the greenback and a shift of production to lower cost sources of supply.  The current issue of Logistics […]

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>