Customers & Partners,
We trust all is well with your organization through Q1 of 2018.
We would like to share our insights on the changes we’re all experiencing and managing together. The transportation industry is the circulatory system of the economy, and we’re amidst a turbulent transition with capacity and costing. These changes have certainly affected your supply chain, and the ability to service and support your customers.
Key causes to these effects:
- Economic Growth: The North American economy continues to grow and strengthen, increasing the demand for transportation services in all industries.
- E-Commerce: The transition from brick and mortar retail to online purchasing trends have spiked demand for just-in-time delivery across all modes. Road, rail, ocean, and air.
- Electronic Logging Devices: New federal legislation limiting the service time and distance of drivers. This has the greatest effect for many small and medium sized carriers, and especially the 650-1200 kms/400 – 740 miles service lanes. These were commonly 1 day service points, and are now commonly two day delivery. ELDs improve workplace and road safety, but limit capacity in our market.
- Extreme Weather: This winter’s road conditions, and the ability to travel safely and deliver is also a key factor to the supply and demand crunch in Q1 of 2018. With the devastating natural disasters in the United States, much focus and many transportation resources have been committed to relief and rebuild.
- Transport Driver Shortages/Capacity: The most important factor are the integral women and men in their careers, and the lack of growth in the profession. The certification and licensing costs have increased over 500% in the last 10 year, a significant startup investment. Furthermore, the average transport driver is 60 + years old, resulting in retirees with fewer new drivers in the succession plan to meet demand.
In response to these changes, here is what we can do together:
- Driver friendly business: Communicate with your team and logistics partner to allow for more precise and efficient loading on site. This will allow for drivers to perform their pickups more effectively and allow for optimal output; thus limiting the costs of service.
- Build on our long term Partnership: Let’s strategize together in the short and log term so that your budgetary and delivery expectations and requirements are met for your projects. We all operate in a seconds and minutes environment, with capacity in high demand, so please act on solutions and book while available.
- Flexibility & Adaptability: In this live solution market, our team and partner network will assure you have all available resources and equipment with and for your suppliers, team, and customers.
- Insight & Foresight: Please work with our team to provide as much information as possible, so that we can support accordingly. Let’s plan in advance.
We are experiencing an unprecedented supply and demand shift, similar to the housing market or fuel which will over time, correct to a new normal.
Our Dynamic Team thanks you for your continued support and for our partnership, and we look forward to growing together in 2018.
Sincerely,
The Dynamic Green Team
If you would like to learn more about the market, please visit these referenced articles:
https://www.wsj.com/articles/a-shortage-of-trucks-is-forcing-companies-to-cut-shipments-or-pay-up-1516789800
http://www.ttnews.com/articles/there-arent-enough-truckers-and-thats-pinching-us-profits
http://www.ttnews.com/articles/analysts-predict-spot-rates-could-soar-once-eld-mandate-goes-effect