The last five years have seen major swings in the freight pendulum. In the mid 2000’s, carriers called the shots on rates and capacity as business volumes soared. During the latter months of 2008 and throughout 2009, the freight pendulum swung backwards. With the recession and the major contraction in freight, shippers took advantage of being in the driver’s seat by negotiating major decreases in freight rates and dictating to carriers the loads they expected them to carry.

In 2010, we are witnessing a tug of war. Business volumes are increasing. Shippers that have both head haul and backhaul truckload freight moving in the same geographic area are seeking to find carriers that will move one-way loads and round trips. While some shippers are able to cover a significant percentage of their loads, there are certain head haul or backhaul lanes that are a chronic problem for them on a weekly basis.

Certain carriers are telling their clients that they will pick up specific loads of interest to them. When it comes to trying to match head haul and backhaul loads, don’t bother trying. In 2010 truckload carriers are being much more selective and are turning down loads that don’t work for them. These carriers are indicating that they will find their own loads moving in the other direction and balance their lanes themselves.

These comments seem to mirror an interesting discussion that has been taking place on one of the LinkedIn groups, The Truckload, Trucking, Logistics, Supply Chain, 3PL Distribution group. Here is one of the explanations offered in this group.

“We are a small company and do not track the turn downs but we estimate it to be in the range of 20-30 per week. To say it is due to a lack of capacity would be somewhat misleading. Many of the loads that we turn down are due to inadequate rates. We have determined that we will no longer accept freight that does not cover our full costs. We have taken that dreaded "back haul" out of our vocabulary. We certainly could accept more loads but why wear out our trucks, drivers and office personnel for a break even rate. We are also finding that we are receiving calls pleading for trucks at any rate. It is becoming a "can you get it today?" and then what rate do you need to do it. Hopefully we are reaching a point of making a reasonable profit once again.”

Another member of the group added this observation.

“. . . The . . . majority of trucking companies need and want to improve their balance sheets rather than expand. Besides they have plenty of idled trucks that have been sitting on the fence. The real shortage is in "qualified" and I can't stress that word enough. Once CSA 2010 kicks in there will be nobody in those shiny new trucks.”

Clearly carriers are being more discerning on the loads they choose to pick up in 2010 as the volume of business increases. Many are focused on trying to improve their profitability after the ravages on the recession.

This does not mean that shippers should throw up their hands and accept that their core carriers will move loads in only one direction and not the other or accept every rate increase that comes their way. Rather, shippers should be taking a hard look at their inbound and outbound routing guides. While it is fine for carriers to wish to take the higher paying loads that are moving in the lanes where they need more volume, it is entirely appropriate for shippers to expect their core carriers to take the good with the not so good, if the round trip rate is within an acceptable range.

If a shipper has inbound and outbound loads coming from and going to the same geographic areas on a consistent basis, this is the time to have face to face meetings with the carriers that service these areas. Transport companies seeking core carrier status should be focused on building business partnerships with their clients. These relationships should be based on profitability for both parties, service quality, loyalty and reliability. If your so-called business partners are solely focused on their selfish needs and are not willing to be team players, this may be the time to pursue other options.