Less-Than-Truckload

The cost of the U.S. business logistics system jumped up 10.4 percent in 2010, making up more than half of the preceding year’s decline. But don’t expect gains like this to continue as the economy begins to slow and all four transportation modes scramble to make adjustments during this period of unprecedented volatility.

By setting reasonable goals, the converter and packager of cheese products upgraded its antiquated TMS, reduced its LTL shipments by nearly 30 percent, and brought its carrier relations into the 21st century.

Time to cash in on rates?

As we turn the corner towards a lasting recovery, we’re reminded of the columns that we wrote in the recent past signaling the shifts in partnerships between shippers and transportation providers—specifically on the rates and services “dance” and potential capacity tension.

Earlier this year i wrote about the winds of change affecting LTL pricing in North America. If shippers and carriers are going to take advantage of pricing deregulation then they have to work together to disaggregate, cooperate, and automate.

Company officials said that this new terminal will provide New York and New Jersey customers areas outbound LTL services to Illinois down through Texas and every state west of the Mississippi River.

Before developing its web-based carrier rating tool, this niche vendor of outdoor furniture was spending 17 percent of its sales on transportation. This year, those costs are going to be about 5 percent of sales—a turnaround that earned the company our 2011 Best Practices Award.

Non asset-based third-party logistics (3PL) services provider UTi Worldwide (UTIW) said this week it has introduced a U.S.-Mexico cross-border service in an effort to “simplify and speed trade across the U.S. and Mexico borders.”

Citing improving business conditions, second quarter earnings for less-than-truckload transportation services provider YRC Worldwide (YRCW) showed some sequential and annual gains, although the company posted quarterly net and revenue losses.

Con-way Truckload, a subsidiary of transportation and logistics services provider Con-way, said this week it has introduced a new offering for shippers to better utilize trailer space, as well as better effectively secure freight to prevent shipment damage.

In a move designed to expand its services in the Midwest, less-than-truckload (LTL) transportation services provider New England Motor Freight (NEMF) said this week it has opened up a new terminal in Toledo, Ohio.

Many trucking executives believe that we’re on the cusp of a steady, prolonged recovery with solid price increases to match. Analysts aren’t so sure. But nearly all agree that shippers should expect rate increases when their contracts expire, some in the 3-percent to 5-percent range. Here are the four issues that are now in the driver’s seat.