The next two years will likely present unparalleled challenges to even the most adept and savvy shippers as they seek to move freight competitively, safely and within ever tightening performance goals in a downsized transport sector. The re-emerging world and domestic economies will increase demand for scarce transportation equipment, while several U.S. surface regulatory changes will constrain supply. CSA 2010, new driver hours-of-service rules and electronic on-board recorders lead the regulatory shuffle. Further anti-terrorism government regulation is likely.
Shippers and 3PLs that have continued to build and reinforce strong relationships with carriers and other providers through the worst of times should be rewarded when capacity tightens. Carriers keep sophisticated scorecards on their customers, and they will use them to allocate their precious resources during crunch time.
Safety, security, corporate and government compliance issues threaten our food and drug supply chains. The solutions are in our control. One threat we in the domestic trucking and broker world face is that of unauthorized double- or triple-brokering. This is where a motor carrier accepts a tendered load then brokers it to another carrier, without the shipper’s or original broker’s knowledge. This erases the benefits of due diligence, removes understanding of standard procedures, often nullifies insurance and places freight at risk.
A safety and security black hole exists, most pronounced within publicly traded companies. Most companies set contractual requirements that, by Sarbanes-Oxley and other laws, their executives attest are being met. Those contracts and procedures were designed carefully, yet most companies don’t know where all their contracts are, or whether they are complete and current. In other words, there is little or no compliance. These companies, their executives and their freight are in danger.
The domestic transportation industry has been resilient in the past decade. Our experience and discipline over the time will be especially important going forward.