Tuesday, January 29, 2013

2012 Was A Good Year for Shippers Who Used Analysis Over Emotion

Despite all the noise about how CSA, regulations and a surging economy would create a massive deficit in capacity, what we saw in 2012 was a very shipper friendly environment for those shippers who did not let their emotions runaway with them.  If you stood fast, watched the data and understood the market you were able to reap some pretty good rewards in 2012.  The ATA truck tonnage report even showed a reduction year over year in December.

Bob Costello, economist for the ATA was even quoted as saying in 2013 the outlook is for a sluggish truckload environment.  My personal believe is the rules of good transportation management and procurement management don't change much.  Some highlights are:

  • Always conduct should costing before talking rates.  Understand the costs of every component (Equipment, driver wages, fuel etc.) and the best in class purchasers will know those costs as well as the person across the table. 
  • Don't let emotions and the industry hype sway you.  Stay focused with the data.
  • Understand your personal procurement situation.  Even if the market is "on fire" if you have counter freight to the prevailing freight flows you are in the driver's seat. 
I had one person tell me a long time ago that transparency and accuracy will always prevail in costing and I believe them to be right. 

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