Mergers, Acquisitions and Their Effect on the Transportation Industry

At the end of each year Transport Topics reviews the mergers and acquisitions that have taken place over the past twelve months in the transportation industry, giving readers a brief synopsis of changes with small and large companies. And yes, these mergers/acquisitions do impact the transportation industry, sometimes causing the big to become bigger and the small to become non-existent. The old cliche, "the rich keep getting richer and the poor keep getting poorer" seems to ring true when I review this section, but this is what our industry has become.

In the LTL world, there are only a few less than truckload carriers with true national scope, as some were eaten by UPS and FedEx. We are now left with regional LTL carriers battling with the big boys and it sometimes feels like the truckload side is heading in the same direction, even though there are many more players in the truckload field when you consider all of the brokers, agents, single owner operators and logistics companies.

But the one thing Transport Topics does not compile is a list of mergers and acquisitions that have taken place in our entire economy, (which would probably be too long to print). I bring this up, because I am currently experiencing changes to my business due to two of my customers being acquired by larger corporations.

With both of my customers, the purchasing company is closing the doors to the facilities of the company it purchased, which doesn't entirely eliminate the movement of the freight, but it does rearrange the shipments. For example; instead of loads originating in South Carolina, they now originate in Tennessee. And the people who controlled the freight in the past will no longer control it in the future. All contracts and rate agreements will become null and void. All relationships that have been nurtured over numerous years can easily become memories unless I stay in contact with those people or they find other positions where I can work with them. And yes, it can be frustrating. In our industry, change is inevitable.....whether it be the departure of a Logistics Manager, bankruptcy or the acquisition of a customer. Freight, (or business), can be here one day and gone the next.

The transportation industry is constantly changing due to competition, globalization, global warming and economic trends. All things we have no control over. But the one thing we can control is our outlook and although as bad as it may seem, there is always something positive around the next bend. You never know when the new company needs a little help moving their freight or when the former Logistics Manager might you a call from a position at a better company.

And that my friend is how we roll with the punches in the transportation industry.