The world of transportation is moving at a torrid pace. Industry consolidation, new government rulings, new services, new technologies, globalization and new leaders are constantly reshaping this world.

We all live and work in our own worlds. We all tend to interact with certain subsets of people on a daily and weekly basis. This can result in a certain isolation from the important developments that are taking place in the field of transportation. How can you stay informed of these changes? Here are few thoughts.

Attend Conferences

There are a number of excellent conferences that are held in North America each year. Each conference has its strengths and weaknesses and each provides the attendees with certain benefits. The Annual CSCMP (Council of Supply Chain Management Professionsals) conference is probably the best in terms of educational content and focus. There are usually one or more tracks on Transportation with excellent speakers addressing the key issues of the day. In addition, the conference provides networking opportunities and more recently, a trade show area. It boasts an annual turnout of over 3000 logistics and transportation professionals from all over the world. If you are going to attend one top notch educational conference a year, the CSCMP annual conference is the one.

IANA (Intermodal Association of North America) and the NIT (National Industrial Transportation)League co-host a trade show and conference annually. If you are shipper looking to meet carriers, this is your chance. If you are a carrier looking to meet potential carrier partners, this is the show for you.

SMC3 (Southern Motor Carrier), a rate publishing and pricing analysis organization and NASSTRAC (National Association of Small Shippers) also host some very fine quality conferences. The SMC3 winter conference in Atlanta is particularly beneficial since it attracts over 300 participants, including carriers, shippers and consultants, and often features presentations from the CEO's of major LTL carriers such as YRC and Fedex Freight. As the name implies, the NASSTRAC conference includes senior representatives from the small parcel and LTL industries. Both conferences are small enough in size and informal so it is easy to meet your fellow attendees and make some good business contacts.

The UK based eyefortransport organization hosts a number of conferences around the world each year. Their premier event is the 3PL Summit in Atlanta. The conference, chaired by Ben Gordon, one of the industry leaders in the facilitating mergers and acquisitions, provides value to both shippers and 3PL's (and others). Featuring two parallel tracks, one on Outsourcing and one on developments in the 3PL industry, this is a must for 3PL's looking to acquire or be acquired. It is also provides very valuable insights for shippers on how to more effectively select and work with a 3PL. The conference features a number of workshops on specific topics and extensive networking opportunities, including a "speed networking" session which is a great deal of fun.

The American Trucking Association and the Canadian Trucking Alliance also host conferences and are invaluable to their members in keeping them informed on key isses of the day (i.e. hours of service regulations). Participating in these associations allows you to shape the policies of most importance to your industry.

In addition to these conferences, there are number of events for targetted audiences (i.e. Northwest Intermodal Conference, i2 Users Conference, KOM Klinic) some of which are by invitation only.

Subscribe to Leading Industry Transportation Publications

There are a number of very fine publications that have a specific focus on transportation. Traffic World, Transport Topics and Canadian Transportation and Logistics in Canada are the most focused on transportation and the most authoritative. Other publications with strong transportation content include Inbound Logistics, Logistics Management, American Shipper, Today's Trucking (Canadian) and Transport Magazine (in Quebec) that is published in French. A subscription to these fine publications will keep you up to date on major developments in our industry.

Participate in Local Networking Opportunities

In many cities throughout North America, there are local transportation clubs and CSCMP Roundtables. These are excellent opportunities to network and broaden your circle of contacts. The CSCMP Roundtables often host lunches and dinners with high quality speakers that address transportation and related topics.

Participate in Internet Based Networks

A number of internet based networks have surfaced in recent years with Linkedin probably being the best known. By connecting with your colleagues on Linkedin, you have an opportunity to have visibility into their contacts and vice versa. This allows for referrals and networking opportunities.

Knowledge is Power

Clearly there are a number of resources available to the transportation professional. By utilizing these resources you can broaden your scope of knowledge and contacts, learn new skills and techniques for addressing transportation related issues and provide additional value to your organization.

If you haven't noticed, there is a stampede to enter the Chinese transportation market. The attraction is obvious. China's rapdily growing economy, its importance in global trade and its huge population make it a very appealing country for North American transportation companies seeking to provide an end to end service. Facilitating the process is the fact that the country has eased restrictions on foreign involvement and its internal transportation market is becoming more open.

Barriers to Providing a National Service

However, China still presents formidable barriers to long-haul trucking. "It's easy to operate within a province," stated Evan Armstrong, President of Armstrong & Associates, a 3PL consulting company, "but moving from one to another can be almost like crossing a country border. You have to clear customs when you go from province to province." Even Sinotrans Ltd., one of China's biggest freight movers doesn't have a national network.

Schneider's China Strategy

The challenges have not stopped a number of major players from trying to take leaderhip role in serving this market. Early this year, Schneider National Inc. received approval to operate a trucking and logistics business in China. Serving the internal Chinese market, the company will operate as Schneider Logistics (Tianjin) Co. Ltd. Tianjin, a port city in the northeast, is China's third-largest urban area. Schneider expects to start small, with about 50 trucks and will study the market as it goes along. Schneider has signalled that it is working on potential acquisitions of two Chinese trucking companies that should close in the near future.

Con-way's China Strategy

In August 2006, Con-way Freight launched OceanGuaranteedSM - a time-definite surface freight transportation service in partnership with APL Logistics and APL servicing ports in Hong Kong, Shanghai and Shenzhen, China. This new "hybrid transportation network" links logistics operations in Asia, ocean shipping and day-definite, rapid response, domestic U.S. freight delivery systems provided by Con-way.

YRC's China Strategy

On June 26, 2007 YRC signed a preliminary agreement to acquire Shanghai Jiayu Logistics, one of the largest LTL providers in China. Shanghai Jiayu has more than 30,000 customers, 1600 employees, 300 tractors and more than 3000 vehicles. This will more than double the size of YRC's operations in China. "It's a pretty straightforwrd strategy," said YRC President and CEO Bill Zollars. "It allows us to begin building a platform in China and grow the ground transportation network that we can hook up to our North American network and provide an end-to-end transportation management," Zollars said.

Canadian Carriers Also Looking at China

Fastfrate, a leading Canadian transportation company has opened its first ever office in Shanghai, China. The company has hired Patrick Lawton, a former CP Rail employee who has worked in Beijing, China for the past six years.

Many More Announcements to Come

Clearly each of these players is formulating its own China strategy in a way that works best for them. It is anybody's guess as to who will achieve success and who will not. Stay tuned for many more announcements in the months and years ahead.

On July 23, Fedex announced that is has reduced its standard LTL fuel surcharge by 25 percent. This applies to LTL freight moving on both Fedex Freight and Fedex National (formerly Watkins Motor Lines). Douglas G. Duncan, the President and CEO of Fedex Freight indicated that this is being done to help shippers and to increase market share. This begs several questions. What are the true motivations of Fedex Freight and why is this being done now?

Fedex seeks to Gain Market Share

It is somehwat surprising to see a market leader such as Fedex Freight make this move. With LTL revenue of $4.9 billion and with fuel surcharges being very profitable to Fedex (and other carriers), why would Fedex make a pre-emptive move that will reduce their revenues and profits? Fedex must realize that their competitors are going to match their moves to retain market share.
There appear to several reasons for the Fedex initiative. With business soft, Fedex must believe they can increase capacity and gain market share. Their forecasts must indicate that the increase in volume will offset the lost profits from the fuel surcharge revenues. In addition, published reports indicate that UPS Freight achieved a 12 increase in shipments in its most recent quarter. This may help Fedex Freight take back some lost market share.

Injure the Weaker Players

The LTL carriers that are not as well run as Fedex Freight and that are more dependent on the fuel surcharge revenue to prop up profits will be hurt by this action. If they lower their surcharges to match Fedex, this may put them in a more vulnerable state.

Take Business from Yellow, Roadway and ABF

Contract negotiations are under way with the major unionized carriers. In addition to the threat of a possible work stoppage, this pricing initiative provides Fedex with another weapon to take market share from YRC and ABF. Clearly fedex Freight is seeking to create uncertainty in the minds of the customers of the unionized LTL carriers and provide them with a financial incentive to make a switch.

The Bottom Line

For every action there is a reaction. You can be sure that this move is being discussed in the boardrooms of every LTL carrier in North America. This will certainly trigger responses from many carriers that cannot afford to lose market share. It will be interesting to look at Fedex Freight's financial results in the coming quarters to see if this pricing strategy will produce the desired results. There will no doubt be some winners and losers.

While an excellent fleet of tractors and trailers is an essential component of a successful transportation company, the quality of its leaders, sales personnel, operations management, drivers and customer service representatives will ultimately determine the fate of the company. For those many transport companies or manufacturers that no longer exist, their demise can be traced back to a failure of its team to provide the service and manage the business at a profit.

Those of you who read this blog are the folks driving this industry. Each shipper or transport company is only as good as the team of people that it assembles. At the same time, your success in this industry is dependent on making wise, informed choices about the companies you decide to work for.

In my daily life as a consultant, I interact with many people in this industry, including shippers, carriers, IMC’s, freight brokers, railroads, other consultants and 3PL’s. I speak to many individuals who are happy in their jobs and others who are the “walking wounded,” people working for companies or supervisors that they don’t like and respect. Many of you will agonize at various stages of your career as to whether to stay with your current employer or seek new employment. As we all know, no job or company is perfect. The people you work for are human and sometimes make mistakes. What are the telltale signs that suggest that maybe it is time to look elsewhere?

Here is a list of attributes for you to consider. If these attributes exist in your current job and company, you are indeed fortunate and should make the best of the opportunity. If they are not, perhaps it is time to move on down the road.

You have a passion for your job and company
The company’s culture is one of collaboration and communication
You can see growth and advancement opportunities within the organization
You understand and buy into the company’s mission and direction
You are comfortable with the decisions made by your supervisors and leaders
You are continuing to learn
You are paid for your performance
The company is employee driven, customer driven and profit driven

Here are a few thoughts to consider.

You have a passion for your job and company

One of the sure signs that it is time to move on is if you wake up in the morning and are not motivated to go to work. If you no longer buy into the company and are a “dead man walking,” it is time to look elsewhere. You cannot be successful if you no longer have a passion for your job and the company. Sooner or later this will manifest itself in your performance and put you in jeopardy.

The company’s culture is one of collaboration and communication

Great organizations in any industry perform best when there is good teamwork and communication between the participants. The transportation industry is no different. If you work for a company that is very secretive and where everyone’s personal agenda takes precedence over the goals of the company that is sure sign of trouble ahead.

You can see growth and advancement opportunities within the company

While not everyone is cut out to be President of the company, most of us want to know that there are opportunities for personal growth and greater responsibility. Good companies discuss their employees’ performance expectations and provide feedback to each employee on a regular basis. You know what your supervisor expects and you receive positive feedback on your performance and constructive criticism on how to improve.

You understand and buy into the company’s mission and direction

Good companies have well thought out business plans and metrics to monitor success. Transportation companies seek to open new markets, to gain market share, to better serve their customers and to improve their profits. Each employee knows his or her role in the organization. Great companies solicit input from their employees and customers and utilize this input to direct their strategies. The plan is logical and is one that you can explain to yourself and your employees.

You are comfortable with the decisions made by your supervisors and leaders

Are you receiving the support you need? Do your leaders make a decision one day and then backtrack the next? Do you work in an environment of fairness and ethical behavior? If not, these are additional signs that this is not the company for you.

You are continuing to learn

We live in a very competitive world. Frequently our success is tied to the ability of our employers to develop strategies that provide differentiation in the marketplace. Your company should provide you with training in the latest business tools (i.e. six sigma, Balanced Scorecards) that facilitate market superiority. If your company is still using practices and procedures from a previous era, you need to be concerned both about the company’s survival and your own.

You are paid for your performance

Does the performance of your job have a direct bearing on the company’s success? Is some part of your compensation tied to your personal efforts in helping your organization achieve success? Are all of the rewards retained by the ownership with only token payments made to its employees? Is this the type of company you wish to work for?

The company is employee driven, customer driven and profit driven

Successful companies treat their employees and customers exceptionally well and provide good returns to their shareholders. If your company is not providing excellent returns to all three groups, this will come back to hurt them sooner than later.

Look Before You Leap

The decision to leave the security of your employer is not one to be taken lightly. The “grass is not always greener” on the other side. Before you make a decision to leave a company, make sure you discuss the pros and cons with your family and friends. However, if you are wrestling with the answers to many of the issues above, you may need to look at moving down the road.

To help you in this journey, a new service in being launched today. If you go the “Careers in Transportation” section of my company’s website (www.dantranscon.com), you will see a list of people looking for work and jobs available within the industry. If you are in middle or senior management, with either a shipper or carrier, please send us your job profile in the format requested. Conversely, if you are a Transportation company or a Manufacturer/Distributor looking for good people, please take the time to post your middle and senior management positions that you are seeking to fill. If your profile meets the criteria, we will post your submission on the website. We wish you much success with your job search. For some tips on how to select the right company to work for, make sure you read my next blog.