Restocking the Loading Dock

(Traffic World – John Gallagher)

Truckload carriers forced to reassess their business as they work through one of the longest freight downturns in decades are finding renewed appreciation for the non-asset side of the trucking industry.

A stronger focus on dedicated fleet operations, more reliance on intermodal rail, and freight brokering are keeping big and small fleets from skidding too far off the road as fuel costs continue to take a large bite out of profits.

“We’re seeing some of the freight indicators going up slightly, and at the same time there’s the impact of carriers going out of business” on capacity, said Duff Swain, president of Trincon Group, an industry consulting firm.

“In dry freight, we’re seeing dedicated continue to grow. It’s very strong right now, because shippers are moving into more stable relationships with their carriers. They realize that when the economy comes back there’s going to be less capacity in the marketplace, as well as a shortage of drivers. If the economy improves by the fourth quarter, there’s going to be an upswing in supply and demand as we move from a buyer’s to a seller’s market.” Read the complete article.