It seems that now is the perfect time for Logistics Service Providers (LSPs) to help clients improve their performance and customer service.
Why? Easing out of the recession, companies are looking to shore up their core competencies and outsource areas that are non-core. But it is also a critical time for decision making as the economy begins to stabilize and the transportation industry remains in flux.
Transportation has really become a hot topic lately as I talk with colleagues and clients around the globe about rising prices. Without a doubt, the cost of transportation impacts everything and everyone along the supply chain.
Freight volumes are rising to meet demand, but truckload capacity is low due to driver availability, post-recession reduced fleets, and the impact of CSA2010 regulations on driver hours. DC Velocity suggests that rig counts are down by as much as 15 to 20 percent from their 2006 peaks.
With this shortfall in truckload capacity, we have developed a few tips to help LSPs keep their motors running. Read the new article, LSP Top 11: Market Forces Drive Freight Costs Up.
On another note, LSPs are also growing stronger through mergers and acquisitions. They are able to cover more geography and consolidate resources and customer bases – a real benefit for the companies they serve. For example, Swan & Hercules Global Logistics (SHGL) recently acquired the Australia / New Zealand-based GP Logistics (PDF), expanding SHGL’s customer base by an additional 2,000 customers and 50,000 square feet in North American consolidation space.
To learn more about truckload trends, be on the lookout for a copy of the Domestic Transportation Report by Tompkins Supply Chain Consortium, which will be available to download later this month.
So how is your relationship with your LSP? What transportation issues are you experiencing as freight volumes increase? And if you are an LSP, what other trends are you seeing in your industry?
Go!Go!Go!
Jim
More Resources
Supply Chain Consortium for LSPs
LSP Resources
LSP Top 11 in 2011
Photo Credit: doug_wertman