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TRUCKING ANALYSIS * USA - Capacity rationalization still needed in trucking industry
Trucking industry's hard times aren't hard enough?
New York,NY,USA -Forbes/Intelligently Connecting -April 29, 2009: -- This article, while sounding draconian, accurately reflects the trucking industry's excess capacity still chasing too little demand. So, what is the impact, now and in the future, between transportation suppliers and consumers? Consider the following points:
1. With excess capacity still in the market, a majority of agreements between shippers and carriers are probably based solely on price (rates and discounts).
2. When the economy eventually rebounds, it will be leaner and more efficient across a breadth of industries. Accordingly, the surviving carriers will be those with streamlined linehaul operations, updated "back-office" and in-cab technology coordinating deliveries in a rationalized network minimizing the number of empty miles.
3. Lesson to be learned: Carriers -- improve/optimize now. Shippers --- develop your relationships now as price points will adjust upward once supply and demand are rebalanced...
A contemporary example of the impact of the industry's capacity rationalization is the recent annnouncement by ABF to consolidate and realign its operations...
Labels: trucking industry analysis USA
posted by Unknown @ 5:07 PM
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