Page 5 - Newcom

Editorial
It’s a good time to be small
something only the mega-carriers had experienced in the past.
Another thing small fleets have going for them is that technology is offering them the ability to cost-ef- fectively offer services to customers that previously only the large car- riers could provide, including real- time visibility of freight. Only a few years ago I wondered if the small carriers could survive without the IT resources enjoyed by the big guys. However, I now see technol- ogy as the great equalizer, and not a competitive disadvantage, thanks to the arrival of well-designed, sim- ple apps and other tools that are now more cost-effective than ever to deploy.
I think everyone would agree it’s a good time to be a trucking com- pany – and the buoyant moods I observed among carriers at both the conferences I recently attended would support that. It could be that it’s an even better time to be small. TN
James Menzies can be reached by phone at (416) 510-6896 or by e-mail at james@newcom.ca. You can also follow him on Twitter @JamesMenzies.
The trucking industry is booming, and small carriers are potentially the biggest benefactors. Looking to the U.S., small fleets are growing while larger fleets are not. Speaking at Newcom’s Sur- face Transportation Summit Oct. 10, Stifel Financial Corp.’s David Ross pointed out that small fleets are increasing revenue, while larger fleets are seeing a decline.
“Large fleets have been shrinking for some time, par- tially because they got too big and most of them didn’t make any money,” he said, noting how many turned to asset- light options like brokering trucks and warehousing.
In September, I attended
the FTR Transportation Conference in Indianapolis, Ind., and there was discussion there as well about the improved outlook for small carriers. Finding and keeping drivers is the name of the game, and in a strong market, small fleets have certain advantages on this front. They can offer more perks to driv- ers, create family environments, and focus exclusively on driver-friendly freight and not have to chase skids from major retailers.
“Retailers that allow their oper- ations to hold drivers for six to 16 hours are abusive in today’s envi-
ronment and it happens every day in retail,” said Jeff Tucker, CEO of freight broker Tucker Company.
There were also accounts of ship- pers – desperate for capacity – going out in pursuit of small fleets that can serve as “one lane wonders.”
“If you have some dedicated runs like we do, and if you can match them with a niche carrier where that lane becomes meaningful to them, it’s a great opportunity,” said John Janson, director of global logis- tics for Sanmar. “Last year we added three different sets of one lane won- ders where my transportation team
has put their sales hats on and they’re out finding these carriers.”
Large shippers seeking out small carriers...how times have changed. Back at the Surface Transportation Summit, I moderated a panel discussion on success strat- egies for small carriers. The panel consisted of: Leanne Quail, Paul Quail Trans- port; Brian Taylor, Liberty Linehaul; and Doug Suther- land, Sutco Transportation Specialists. All said they are enjoying improving rates and more demand than they can keep up with. The key, they agreed, is not to lose sight of your core customers.
“There’s a lot of people ask- ing for us to do business now, and I think you don’t want to chase that,” said Sutherland, whose com- pany is focused on the forestry sec- tor. He said small fleets are at an advantage in prosperous times, because they can be more agile deci- sion makers and can offer a driv- er-friendly workplace easier when every employee is known by man-
agement on a first-name basis. Taylor said Liberty Linehaul has been approached of late by large Fortune 500 shippers, looking for capacity, and asking how they can become a good customer. This is
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November 2018 • Truck News 5