{"id":2487,"date":"2018-09-14T18:02:57","date_gmt":"2018-09-14T18:02:57","guid":{"rendered":"https:\/\/cantruck.ca\/shipper-freight-economy-most-disruptive-in-memory\/"},"modified":"2025-01-10T16:48:01","modified_gmt":"2025-01-10T16:48:01","slug":"shipper-freight-economy-most-disruptive-in-memory","status":"publish","type":"post","link":"https:\/\/cantruck.ca\/fr\/shipper-freight-economy-most-disruptive-in-memory\/","title":{"rendered":"Shipper: Freight Economy \u2018Most Disruptive\u2019 in Memory"},"content":{"rendered":"

The current freight transportation market has been the \u201cmost disruptive time we\u2019ve seen in domestic transportation,\u201d says John Janson, director of global logistics for Sanmar, at the FTR Transportation Conference.<\/span><\/p>\n

The sentiment, reports Truck News, was echoed by many of his shipper peers, who are all vying to secure limited capacity while keeping some control on rising rates.\u00a0<\/span><\/p>\n

\u201cI\u2019m not seeing anything in the near future that\u2019s going to change that,\u201d he added. \u201cOne challenge we\u2019ve really seen and continue to focus on is accessorial charges. There is a higher premium on a driver\u2019s time and that asset utilization. Shippers used to have the opportunity to take advantage of trailers for storage, now all the focus is on turn time, how fast can you get that equipment back into the marketplace? You have to be able to start shaping your company and your operations to accommodate that.\u201d<\/span><\/p>\n

Don Daseke, chairman and chief executive officer of Daseke Inc., acknowledged business is good \u2013 especially in the flatdeck segment.<\/span><\/p>\n

\u201cI think we could be in for a long cyclical strength of the flatbed specialized market,\u201d he said. \u201cPart of the reason for that strength is the ELDs certainly contracted capacity a bit. The second factor is, there are really no flatbed companies of size that are adding capacity. If you have fixed capacity of flatbed specialized equipment and strong industrial demand, which there is, you likely have a long-term tight market for flatbeds.\u201d<\/span><\/p>\n

Higher wages will be required to find the drivers willing to do flatbed work, Daseke predicted.<\/span><\/p>\n

\u201cWhat I think has to happen over the next five years, is the average driver making $60,000-$65,000 this year, five years from now will be making $100,000 a year, because how do you attract drivers to a job that has inherent disadvantages? You attract them by paying them enough money to lure them away from other jobs,\u201d Daseke said.<\/span><\/p>\n

Thom Albrecht of Celadon said business is also booming in the dry van segment, with freight growth outpacing GDP \u2013 a rare occurrence, which he said happens about once a decade. He said current market conditions have allowed carriers to bake time into their pricing mechanisms, and this will continue going forward.<\/span><\/p>\n

Jeff Tucker, CEO of freight broker Tucker Company, said opportunities are being created for small fleets that can market themselves to drivers with perks such as no forced dispatch policies and family environments, and a focus on driver-friendly freight.<\/span><\/p>\n

\u201cRetailers that allow their operations to hold drivers for six to 16 hours is abusive in today\u2019s environment and it happens every day in retail,\u201d said Tucker. \u201cThis economy in trucking allows choices, and choices allow you to pick up and go somewhere else.\u201d<\/span><\/p>\n

The trucking industry\u2019s growth is currently among small fleets, and shippers are looking to these fleets to fill niche lanes as \u201cone lane wonders.\u201d<\/span><\/p>\n

\u201cIf you have some dedicated runs like we do, and if you can match them with a niche carrier where that lane becomes meaningful to them, it\u2019s a great opportunity,\u201d said Janson. \u201cLast year we added three different sets of one lane wonders where my transportation team has put their sales hats on and they\u2019re out finding these carriers.\u201d<\/span><\/p>\n

Lee Klaskow, senior analyst with Bloomberg, expects trucking rates to continue to rise, with contract rate increases hitting the mid-teens by the end of the year.<\/span><\/p>\n

\u201cOur view is that rates will continue to climb from here,\u201d he said.<\/span><\/p>\n

Janson worries there will be continued pressure on rates.<\/span><\/p>\n

\u201cAs we head into 2019, we are still hearing expectations for high single digit numbers for rate increases,\u201d he said. \u201cIt puts an inherent pressure on the shipper to say, what can we control? If we can make ourselves more desirable customers, we believe that will be directly reflected in rates we\u2019re doing with long-term carriers. We are really focused on what we can control \u2026 <\/span><\/p>\n

Daseke agreed that shippers should work with their carriers to eliminate waste from the system, but added there are limitations to how much this can achieve.<\/span><\/p>\n

\u201c\u2026We can all try to be more efficient and we do that and urge our shippers to be more efficient in the way we can turn around equipment at their premises, but there\u2019s only so much you can do there,\u201d Daseke said.<\/span><\/p>\n

Full story here<\/a>. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The current freight transportation market has been the \u201cmost disruptive time we\u2019ve seen in domestic transportation,\u201d says John Janson, director of global logistics for Sanmar, at the FTR Transportation Conference….<\/p>\n","protected":false},"author":2,"featured_media":377,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[16,28],"tags":[30,91,21,624,166,167,615,98,24],"class_list":["post-2487","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-conditions","category-labour-hr-driver-shortage","tag-capacity","tag-detention-time","tag-economy","tag-flatbed","tag-freight-rates","tag-freight-volumes","tag-market","tag-shippers","tag-supply-chain"],"acf":[],"_links":{"self":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/posts\/2487","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/comments?post=2487"}],"version-history":[{"count":0,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/posts\/2487\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/media\/377"}],"wp:attachment":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/media?parent=2487"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/categories?post=2487"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/tags?post=2487"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}