TRUCKING FLEET FAILURES Members of M33's Collaborative Client Network have seen the following chart in their recent Performance/Strategy Reviews with their Logistics Coordinators and Account Managers. Although good planning can usually offset such fluctuations, the reality is that the number of trucking companies exiting the marketplace is having a measurable impact on metrics like delivery performance, capacity, and freight cost. That point is further illustrated here: Surviving the Highs & Lows of Transportation. The chart displays the number of trucking companies (consisting of five or more trucks) that have closed their doors or declared bankruptcy since 2000. As you can see, the surge in closures in the last six months alone has seriously depleted the number of trucks available for loads.
Many experts believe this trend will continue for the remainder of the year, creating additional challenges in freight management. Some of the most recognizable side-effects of this challenge include:
While there is no quick fix, it is critical for manufacturers and distributors to recognize this reality and take pro-active steps to reduce capacity failures and control costs.
With the right tools and good planning, most companies can keep their freight pains under control. |
