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May 9, 2009

TRUCKING INDUSTRY's ANALYSIS * USA - Pressure Grows to Reduce Expenses

Corporate-owned truck fleets are facing growing pressure to justify their in-house freight operations as manufacturers and retailers target transportation expenses in response to the sharp nationwide downturn in sales

Arlington,VA,USA -Transport Topics, by Daniel P. Bearth - -May 4, 2009: -- ... Almost 80% of 170 companies surveyed last year by research firm Aberdeen Group said managing the costs of transportation and shipping was one of the biggest challenges facing their organizations... Increased scrutiny has put a damper on tractor growth among private fleets as corporations shift more freight to dedicated for-hire carriers. And it is forcing fleet managers to step up use of technologies, such as routing and freight optimization software, that can trim costs by reducing miles driven, industry experts said... Aside from service issues, two other elements that are major considerations in maintaining a private fleet are high load density and specialized product knowledge, said Frank Erzinger, vice president of supply chain consulting for Chemlogix, Blue Bell, Pa.... Most of the shift away from corporate-owned private fleets occurred soon after the trucking industry was deregulated in 1980, Erzinger said... “The companies left all have extremely high load density or very specific product knowledge,” he said. “They are the cream of the crop.”...

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