Targeting Market Trends
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- Date Submitted: 12/08/2011 08:19 PM
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Targeting Market Trends
Jindel (2011) states, although the less than truckload (LTL) 2010 margins are a dramatic improvement over the negative 7 percent margins of a year earlier, the weak U.S. economy and uncertainty about the future continues to paint a somewhat gloomy picture. For the purpose of this discussion two trends in the motor carrier industry will be identified and discussed. Initially the two issues appear to be polar opposites. First is the CSA 2010 or as it is known now the Compliance, Safety, Accountability program or just CSA. The second is an increasingly important component of customer service, providing shippers and consignees with real time shipment information. Beyond initial examination the two topics are related to the bottom line, one by saving dollars the other by generating dollars through expansion of market share.
In recent web casts by Anonymous (2011), the question of what the CSA regulations mean for the future of trucking and whether they will affect profitability in the third party logistics (3PL) industry is discussed. Heller (2010) then states, if implemented correctly CSA provides the tools necessary for carriers to improve safety weaknesses thus saving lives on our nation's highways and saving carrier dollars through safety management. Although saving carriers money is not a primary objective of CSA it has great potential in that arena. The second area, providing real time shipment information, is quickly becoming the expected norm with customers.
Leading small parcel delivery companies UPS and FedEx began using communication technology several years ago and are continually updating both hardware and software to provide real time shipment information. In recent years each has acquired LTL divisions, Overnite Express and American Freightways respectively, thus blurring the line between small parcel and LTL freight carriers in the eyes of shippers and consignees. As reported by Business Editors (2002), with the...
Jindel (2011) states, although the less than truckload (LTL) 2010 margins are a dramatic improvement over the negative 7 percent margins of a year earlier, the weak U.S. economy and uncertainty about the future continues to paint a somewhat gloomy picture. For the purpose of this discussion two trends in the motor carrier industry will be identified and discussed. Initially the two issues appear to be polar opposites. First is the CSA 2010 or as it is known now the Compliance, Safety, Accountability program or just CSA. The second is an increasingly important component of customer service, providing shippers and consignees with real time shipment information. Beyond initial examination the two topics are related to the bottom line, one by saving dollars the other by generating dollars through expansion of market share.
In recent web casts by Anonymous (2011), the question of what the CSA regulations mean for the future of trucking and whether they will affect profitability in the third party logistics (3PL) industry is discussed. Heller (2010) then states, if implemented correctly CSA provides the tools necessary for carriers to improve safety weaknesses thus saving lives on our nation's highways and saving carrier dollars through safety management. Although saving carriers money is not a primary objective of CSA it has great potential in that arena. The second area, providing real time shipment information, is quickly becoming the expected norm with customers.
Leading small parcel delivery companies UPS and FedEx began using communication technology several years ago and are continually updating both hardware and software to provide real time shipment information. In recent years each has acquired LTL divisions, Overnite Express and American Freightways respectively, thus blurring the line between small parcel and LTL freight carriers in the eyes of shippers and consignees. As reported by Business Editors (2002), with the...