John Wagner Looks At Some Of The Latest Transportation News And Figures From 2015 So Far
Forecasting The Second Half
- Truckload carriers will keep spending more for drivers, to slow the churn. This tactic is working as driver turnover has slowed somewhat.
- Regulatory impact from electronic logging, proposed higher insurance minimums, and driver testing, coupled with higher costs for fleet replacement, will keep pressing rates upward.
- Intermodal pricing will continue to creep up as railroads keep pace with truckload pricing. Truckload rates are up about 5 percent from where they were last year at this time and railroaders don’t want to leave any money on the table, particularly since other rail business is lagging.
- The lack of any meaningful action on the part of the president and Congress to provide a long-term solution to our nation’s infrastructure replacement and upkeep will keep congestion an ugly fact of life for motor carriers and consumers.
- Shippers will ask themselves if they are good customers. While truck capacity isn’t as tight as forecasted, it still isn’t abundant. Smart shippers will work with their carriers to maximize capacity and evaluate shipping and receiving times, to squeeze more time out of the regulated hours a driver is allowed to drive. When the economy sustains a 3-plus percent GDP it will be these shippers who will get the carrier capacity they need.
- There will continue to be consolidation in the logistics industry as larger companies make strategic acquisitions to fill geographic holes in their service areas and/or pick up new service segments. Larger motor carriers are always looking to add to their capacity if it can be done at the right price while retaining drivers and customer.
Here at Wagner
At Wagner we continue to roll on through the year with good performance in all of our service categories. We are growing with our current customers while adding new ones. A significant new operation is in development and it is always exciting to work with a new client to bring a new facility to life.