The unpredictability of the truckload segment continues to be the biggest challenge faced by many trucking executives—whether they’re running a Fortune 500 company or one truck and trailer. The last three years have been one heart-pumping ride on this highway we call trucking. It seems like every time we think we have a handle on our business, on customers’ needs, and on the right mix of equipment and truck drivers, something throws us into a downhill ride of epic proportions.
Trucking has gone from idling tens of thousands of trucks during 2008 and 2009 to shippers now facing a capacity crunch—well, at least this week. We’re at the same capacity levels as six years ago. The biggest challenge, especially for micro- and small carriers, is that hauling rates have shifted to neutral.
This becomes an oxymoron when you look at capacity, causing a disconnect in trying to make sense from the stats as you plan for the future. Add to this the volatility of fuel costs, the ever-changing regulations and the need for more qualified truckers willing to work in this environment, and managing a trucking business becomes one big headache.
So, where’s the silver lining in all of this?
Start by keeping an eye on your business, your customers and your freight lanes. While you can’t control the overall economy, you can have some control when you localize your efforts by concentrating on your own micro-economy.
For the smaller carriers, one way to gain control is to put effort into developing specific freight lanes for your trucks. Having multiple directions or legs within each freight lane with multiple sources of freight will provide options. When a load or a customer cancels in one leg, you will still have other freight for your trucks so it doesn’t interrupt the freight flow of your lane.
Next, find a fuel discount program so you can avoid paying the advertised pump price for fuel. If you use a factoring business, many have fuel card and discount programs, and many of the small trucking business organizations subscribe to one for their members. A saving of just a few cents per gallon can easily add up to thousands of dollars by year’s end.
While the vast majority of us who truck just can’t see the logic on how many of the regulations will make our roads safer, the fact is we have to operate within the rules. Sit down and come up with the best way to get the greatest benefit for you and your customers. Communicate the challenges to your shippers and brokers so you, as a group, can figure out how to work them to everyone’s advantage.
Remember, these regulations apply to every trucker and trucking company, and the ones who figure out how to apply them to their advantage will be the winners, while the rest will be the whiners.
Focus on your micro-economy and you’ll smooth out those hair-raising downhill rides when they occur.
