Not unlike any weekend race at Martinsville or Richmond, today’s trucking market is a test of patience and will, character and resolve. There are flat straight-aways and pitched turns; there are shredded treads littering the track, evidence of unseen blowouts; but there is also the hum and buzz of tractor-trailers zooming past in perfect unison. Watch closely and names such as Schneider, Swift, Groendyke, Western Express, UPS, and Old Dominion sling- shot their way along the Interstate with willful abandon. Inbound Logistics ’ 2009 Trucking Perspectives takes a similar read of the road. Amid the still-deafening whir and blinding blur of today’s motor freight sector, our research weaves in and out of empirical data and anecdotal insight, isolating and framing challenges and opportunities confronting both ship- pers and carriers, as well as trends that are shaping their respective futures. Soliciting more than 200 question- naires from trucking companies and motor freight buyers, IL pits their unique perspectives against each other to expose the real drivers sparking change within the industry. We asked carriers to identify how they are working with customers to neutralize adverse market pressures by expanding service offer- ings, IT capabilities, and coverage area. Shippers share their point of view as well, offering insight into factors they value when selecting motor freight partners and how they are working in concert with carriers to move their busi- ness forward. As always, bracing Trucking Perspectives is Inbound Logistics ’ annual Top 100 Motor Carriers list, a pack of the leading players in the trucking segment. Each year we present a nuts- and-bolts directory of carriers that are innovation pacesetters. From global,
asset-based truckload carriers towing on both sides of the Asia-Pacific divide to regional less-than-truckload haulers and bulk-shipping stalwarts that carry more than less, our Top 100 Motor Carriers represent a diverse pool of trucking com- panies that are pushing the pedal to the metal, while delivering speed and reli- ability to their customers. The Price is Right… The reverberations of a global reces- sion and a severe depression in supply chain inventory have had a marked impact on the U.S. trucking sector. Conflating fixed sensitivity to volatile
fuel prices, consumer uncertainty has forced trucks to idle and carriers to opti- mize all aspects of their operations. Cost control has become a clear and present concern, and motor freight compa- nies responding to this year’s Trucking Perspectives survey indicate as much. Pricing pressures from customers and competition are carriers’ greatest challenge according to 87 percent of survey participants, followed by rising fuel prices (52 percent), rising equip- ment expenses (47 percent), taxes, fees, and other regulatory costs (46 percent), and increasing insurance liabilities (45 percent). Given demand dearth and
FIGURE 1. U.S. Truckers by Operating Area
Global
North America
U.S. Only
2007 2008 2009
60
40
20
Over the past three years there has been a seismic shift in the areas where motor freight companies are trucking. In 2007, 61 percent of surveyed carriers served the United States exclusively; this year that number drifted to 31 percent. By contrast, in 2009, 57 percent of motor freight companies report they serve North America, compared to 33 percent in 2007. The growth of NAFTA trade and the rising aspirations of Canada and Mexico as global trade partners, and the maturation of manufacturing, distribution, and consumer markets south of the U.S. border, have helped trigger expansion. Beyond the North American continent, U.S. truckers are making waves and paving new roads for expansion. In 2009, 12 percent of carriers identified themselves as global, doubling the figure from two years ago. Trucking companies are responding to demand in developing countries to share expertise and resources as well as meet their growing need for capacity. At the same time, carriers recognize the value they bring to customers by offering end-to-end global services.
50 Inbound Logistics • September 2009
FACING LOGISTICS CHALLENGES? USE IL’S 3PL EXPERTS AND
Powered by FlippingBook