Changes and Challenges

The transportation industry always seems to be constantly changing with new challenges (or opportunities-however you want to see it) right around the corner and no advanced warning of what lies ahead. And this is where the industry is today. Higher diesel fuel prices and low rates have driven many carriers out of business or caused one truck shows to park the rig to wait things out. Produce season has begun in Florida, paying large sums of money for trucks to haul fruits and vegetables and rates are as volatile as the availability of empty trucks.

The changes I have seen are:
1.)The days of a truck dead-heading a hundred miles to pick up a load or more are over. Dead-head is now limited to 50 miles or less, because it costs around $.75-$1.00 per mile in fuel for every mile the truck travels.
2.)Carriers have realized they can't turn a profit unless they take into account reasonable rates and a consistent fuel surcharge. They are demanding higher rates than before.
3.)Service issues are more common. Having less trucks equates to more problems.
4.)We can cover loads for a competitive rate on one day and then have to pay much more to secure trucks for the same loads the rest of the week.
5.)The weak US dollar is causing some U.S. manufacturers to change to U.S. based suppliers rather than buying goods from other countries. Canadian manufacturers will feel the brunt of this burden as their currency retains value.

And possible changes I see for the future are:
1.)Different organizations are lobbying to increase the bond to become a broker from $10,000 to $100,000 or more, which will make it more difficult for individuals to start their own company. But at the same time, it might keep some of the dishonest people out of this industry, reducing the number of crooks who double broker loads, or broker loads and never pay the carrier. (I have mixed feelings on this legislation. I believe this goes against the spirit of deregulation and the business freedom that makes this country great. But at the same time I despise the unscrupulous brokers out there who are nothing more than scam artists, cheats and liars).
2.)Deadhead surcharges for customers could become common. The higher diesel climbs, the more burden it places on carriers and the more critical deadhead miles become.
3.)The government could mandate a national fuel surcharge scale to be paid by all shippers and brokers. (I support this wholeheartedly. It would put everyone on a level playing field and the carriers would know whether or not they are being paid fairly.
4.)The green movement will continue to gain momentum. The effort to be green will be good for our environment, but it will come at a price and this price will eventually trickle down the customer. Are we willing to pay this price?
5.)Rates will continue to rise. As service issues for brokers and carriers increase, more and more customers will begin to focus on reliability and consistency rather than price. Relationships between brokers and carriers, brokers and customers, and carriers and customers are more important now than ever.