Mutually Beneficial Antidote

• On several occasions, I have commented about a looming truck capacity shortage. A soft North American economy, coupled with political uncertainty and concerns about Europe and China, are discouraging carriers from making investments in their fleets. Truckers are seeking to maximize the utilization of their existing assets and improve yields, particularly with rising equipment costs, increasingly burdensome government regulations, and a shrinking pool of qualified drivers. However, the on-demand truckload model creates uncertainty as truckers wait for shippers to book a load and/or to balance a lane. Shippers are becoming increasingly concerned about finding the capacity they need to move their freight. They are also concerned that tight capacity will lead to rising freight costs. Capacity shortages in various North American markets this year have caused shippers to seek out options to current transportation processes.mutually beneficial antidote

Wal-Mart's About Face

• Wal-Mart launched a program in mid-2010 to reduce costs and deadhead miles, leverage the retailer’s logistics skills and scale, and improve visibility and control of its merchandise by taking control of deliveries of inbound freight. The company believed it could find opportunities to do the work better and at a lower cost than vendors could do under prepaid freight terms.Wal-Mart's About Face

In The Box Thinking

I have long been a fan of intermodal transportation since the days I ran one of Canada’s largest IMCs. I continue to monitor developments in this sector with great interest. My sense is that the intermodal industry, which consists primarily of the railroads, IMCs, shipping lines, draymen and truckers, is positioning itself to take the next big leap forward. Here are some developments to watch.

• In the Box Thinking