Articles
“Dan Goodwill is a well known consultant in the transportation sector and a published and prolific writer on current topics related to the industry. Dan's associates also contribute on a regular basis.”
Intermodal’s ‘transformational’ decade
- I became a big fan of intermodalism during the 1990s when I ran Canada’s largest IMC (intermodal marketing company). Each time I wrote about this topic, I felt that the service was on the brink of making a major breakthrough in customer acceptance and market penetration. While intermodal activity has shown steady growth over the past 10 to 15 years, this mode of transport is still viewed as a niche market by some folks or a slow and unreliable mode by others.Intermodal’s ‘transformational’ decade
Mutually Beneficial Antidote
- On several occasions, I have commented about a looming truck capacity shortage. A soft North American economy, coupled with political uncertainty and concerns about Europe and China, are discouraging carriers from making investments in their fleets. Truckers are seeking to maximize the utilization of their existing assets and improve yields, particularly with rising equipment costs, increasingly burdensome government regulations, and a shrinking pool of qualified drivers. However, the on-demand truckload model creates uncertainty as truckers wait for shippers to book a load and/or to balance a lane. Shippers are becoming increasingly concerned about finding the capacity they need to move their freight. They are also concerned that tight capacity will lead to rising freight costs. Capacity shortages in various North American markets this year have caused shippers to seek out options to current transportation processes.mutually beneficial antidote
Wal-Mart's About Face
- Wal-Mart launched a program in mid-2010 to reduce costs and deadhead miles, leverage the retailer’s logistics skills and scale, and improve visibility and control of its merchandise by taking control of deliveries of inbound freight. The company believed it could find opportunities to do the work better and at a lower cost than vendors could do under prepaid freight terms.Wal-Mart's About Face
In The Box Thinking
I have long been a fan of intermodal transportation since the days I ran one of Canada’s largest IMCs. I continue to monitor developments in this sector with great interest. My sense is that the intermodal industry, which consists primarily of the railroads, IMCs, shipping lines, draymen and truckers, is positioning itself to take the next big leap forward. Here are some developments to watch.
Adapting to the ‘new normal’
The improving job numbers provide further confirmation that an economic recovery is underway. The drop in commodity and fuel prices is likely a brief reprieve on the way to a further upswing in business growth. With rising demand, shippers are facing a broad array of challenges in 2011. A tightening transportation equipment supply is being triggered by driver shortages, new US government regulations and a reluctance of carrier executives to add capacity. This, coupled with rising freight rates and fuel surcharges, is causing shippers to revisit their freight transportation paradigms.
