Trucking fleets seek new strategies in a turbulent age, CSCMP Edge panel says
Carrier executives share approaches to riding out most volatile market conditions in a decade.
The CEOs of some of North America's largest truck fleets are generating new strategies for coping with some of the industry's most volatile business conditions in a decade, according to a panel discussion held Monday at the CSCMP EDGE 2019 annual meeting in Anaheim.
Volatile conditions peaked in 2018 and the first half of 2019 as driver shortages hit a pinnacle, helping to force trucking rates up to historic highs, Derek Leathers, president of CEO of Werner Enterprises Inc., said in a session titled "A Look Down the Road—Carrier CEOs Speak." In response, many fleets boosted their spending by increasing driver wages and replacing vehicles and technology. That reaction added a wave of excess capacity to the system that soon led to a sharp drop in spot market rates, forcing the bankruptcies of dozens of fleets.
That wild ride is now pushing many trucking lines to look for increased driver productivity in return for their investment in increased pay, said Jim Fields, chief operating officer at Pitt Ohio. "One of the most vulnerable times for small carriers is when things are going pretty well, because their costs are going up," Fields said. "Safety devices are great, but they come at a cost, so companies need to offset that with reduced accident history and insurance rates."
Even if they survive those challenges, trucking companies now face the prospect of keeping a close eye on an array of legislative hot button issues including infrastructure improvement plans and funding, the transition from outmoded AOBRD devices to new ELDs, legalized marijuana and increased drug testing, and a turbulent international trade market, Leathers and Fields said.
Resources Mentioned In This Article
Related Articles
Join the Discussion
After you comment, click Post. If you're not already logged in, you will be asked to log in or register.
Feedback: What did you think of this article? We'd like to hear from you. DC VELOCITY is committed to accuracy and clarity in the delivery of important and useful logistics and supply chain news and information. If you find anything in DC VELOCITY you feel is inaccurate or warrants further explanation, please ?Subject=Feedback - : Trucking fleets seek new strategies in a turbulent age, CSCMP Edge panel says">contact Chief Editor David Maloney. All comments are eligible for publication in the letters section of DC VELOCITY magazine. Please include you name and the name of the company or organization your work for.
News Feeds