As the years go by, there is an increasing amount of useful content appearing on the internet. Some of it is designed specifically for truckers and much of it is free or available at a very reasonable price. Here are a few sites that can help trucking companies improve their performance and better manage their businesses.

Big Truck TV (http://www.bigtrucktv.com/)

This very well designed website contains a host of useful information for fleet executives. The website is organized by topic (Environment, Technology, Human Resources, Maintenance, Safety and Regulations, Fleet Operations, Meet the Experts, Finance, ATA, Video White Papers). Each section of the website has a host of video presentations from industry experts on topics ranging from how to open a successful brokerage operation to how to run an effective tire retread program to “how to pick freight that works for you” to how to know your costs and when to say “no” to how to improve driver recruiting. This website is loaded with very valuable information for trucking companies of all sizes.

Key Performance Indicators (www.kpilibrary.com)

This handy website is organized by industry sector. One of the sectors is Transportation and Warehousing. KPIs are listed and each one is defined. Sample KPIs include On-time pickup and delivery, transit time, profit per truck, ratio of fixed to variable cost per truck, ratio of corrective versus preventable maintenance per truck etc.). The KPIs can be grouped into segments (e.g. Cost Leadership, Customer Intimacy, Operational Excellence, Cost/Service Differentiation). The website outlines the most popular KPIs and allows you to create a customized KPI Dashboard. You can only manage what you measure. This website helps trucking companies select those key measureemnts that can help improve profitability.

Truckload Rates (www.truckloadrate.com)

This service can be used on a one-time basis or on an ongoing basis to determine truckload rates on most domestic and cross-border lanes in North America. For a monthly fee ($29.95), carriers (and shippers) can enter lane pairs and see the average, minimum and maximum rates that are being charged for dry van and speciality truckload services. Fuel surcharge data is also available. Each subscriber receives a report that shows the trends on a monthly and year/year basis. Rates are graphed out over a 12 month period so trends can be identified.

The site is of value for several reasons. It ensures shippers and carriers to benchmark market rates on every major lane. For carriers seeking to enter new lanes, on a one shot or continuous basis, it provides market intelligence at a very modest fee.

Twitter (www.twitter.com) and LinkedIn (www.linkedin.com)

Twitter is available to anyone who wishes to compose or read “tweets” or messages that are 140 characters or less. The site serves several purposes. Each tweet must be very focused and concise. Industry experts, including many from the transportation sector, publish tweets on a variety of topics. Those who follow certain individuals can obtain a broad range of views and perspectives. Many tweets contain links to more in-depth articles on those topics on the internet.

LinkedIn is another Internet tool that continues to gain in popularity. Individuals who participate in LinkedIn create a profile of themselves and invite or receive invitations from others to be part of a network. These networks can be used for a variety of purposes. The most common usage is for recruiting. This is a great place to find and recruit staff.
One can also join interest groups. These groups along with one’s network can be used as a “sounding board,” to secure information on a topic or for any other fact-finding purpose. Both of these services are free unless one wishes to pay for some premium services.

SupplyChainBrain (http://www.supplychainbrain.com/content/index.php)

Supplychainbrain is a educational resource that consists of video interviews with industry leaders in supply chain and logistics. It has specific segments for LTL/truckload transportation, rail and intermodal and ocean transportation. Again, the service is free and there is lots of good content.

For transportation professionals seeking to stay informed on their business, there is a host of useful information that is only a click away.

In the “Money” section of the June 30 issue of 50plus, there is an article entitled 5 top tech trends for the post-PC era. The author argues that “the PC’s place in our lives is slowly being usurped. New technology won’t just complement our trusty desktops and laptops — it will eventually take over,” say experts. "We’re now living in the post-PC era," stated technology guru Walt Mossberg, tech columnist for the Wall Street Journal.

“So what exactly is this post-PC era we’re embarking on? While personal computers drastically changed how we work and play, experts say we’re already outgrowing them. In the future, we’ll increasingly turn to devices like tablets and smart phones to do many of the things we now do on our computers. Those in the know say this transition to a multi device era is going to be a long one.

Computers will still have a place in our lives, we’ll just be using them less often — and buying fewer of them. For instance, instead of buying a second computer, consumers may put that money towards a tablet instead. Instead of upgrading or replacing their PC more often, users will get more life out of their computer by focusing on complementary devices.” Market research firms like Gartner are predicting a slow down in the PC market in the next decade.
Speaking at Ideacity 2011, Mr. Mossberg outlined 5 top tech trends in this post-PC or multi-device era. I have taken the liberty of adapting some of his ideas to the transportation industry.

#1 The internet will become invisible

"In the post-PC era, the internet will become as invisible as the electrical grid," says Mossberg. In other words, it will become so integrated into our lives that we’ll also stop thinking of ourselves as "going on the internet" or as "users" or "clients" of this technology. With "cloud" technology, more of our software and information (like documents, contacts, music and video) will be online — making them accessible on all of our devices rather than tied to a specific computer. In fact, some devices like Google’s Chromebook are already cloud-based — and internet access will no longer be optional.

This trend is beginning to unfold in our industry. Shippers now access carrier websites for a variety of information (e.g. shipment statuses, PODs). Carrier salespeople now review shipper websites to see their products, plant locations and business plans. They access their own websites for shipper lane patterns, CRM data and pricing/contribution information. In the future, shippers and carriers will consult their tablets and smartphones to perform many of these tasks and more.

#2 GUI is dying

It’s been more than a quarter of a century since graphic user interfaces (GUI) came on the scene. “It won’t be long before clicking will no longer be required,” predicts Mossberg. “Get ready to get physical with NUI — that is, natural user interface. It’s already making its way into the market place in the form of touch technology (like touch screens on tablets and smart phones) and gesture technology (using motion to control the actions on a screen, like in the latest gaming systems).”

One can certainly envision many of these touch and motion sensitive devices being used on the plant floor, in the warehouse, in the office, in the cab of a truck and in the retail industry for pick-up information, trailer loading and load planning and for the movement of goods throughout a warehouse.

#3 Social networking getting bigger… and smaller

"Social networking is only in its first inning," says Mossberg. While we continue to see new functionality and wider integration, privacy is also a growing concern. When it comes to sharing content, our radius is getting smaller, not larger, he says. Users are getting smarter about these tools. We’re more careful about who we follow, "like" or "friend" on social networks, and more careful about what we post. As we get more social online, we also get more selective — a tendency that will shape the future of social networking.

While Twitter, LinkedIn, Facebook and youtube are all being used in Transportation, to varying degrees, their full impact has yet to be felt. A number of people with whom I speak still question the value of these services. On the flip side, many of these folks don’t know or haven’t taken the time to learn how to use them effectively. Those folks who have taken the time to understand their benefits (e.g. recruiting on LinkedIn) are gaining great value and this trend can only increase in the years to come.

#4 Prepare for the platform wars

As we learned when Betamax went up against VHS, different platforms and formats compete for our attention — and sometimes there are casualties. We’ve seen these "platforms wars" before, says Mossberg. “For instance, Microsoft cornered the corporate market over Apple in the 1980s, and the 1990s saw Internet Explorer defeat Netscape.

“Now the stakes are higher, and the players more numerous. It isn’t just Apple and Microsoft angling for attention — add in Amazon, Facebook and Google too. Surprised to see the latter names on the list? These companies’ platforms are bigger than you think. (For instance, Amazon isn’t just a marketplace — it also rents out cloud computing servers. Google isn’t just a search engine — it’s also in the cloud and developing operating systems and applications.)”

The IT departments at many shippers and carriers are already wrestling with these issues. Will the iPhone dominate smartphones or will Android and Microsoft-based phones become the smartphone platform of choice? Will Blackberry survive? Will Microsoft’s cloud computing platform win out over others or will many folks insist on having most of the “Office” functionality remain in a fully featured PC?

#5 Consumerization of IT

“Individuals won’t be the only ones feeling the impact of the post-PC era. Employers will feel it too — especially companies’ IT departments. Once the keepers of all things relating to technology, these departments will have to give up some of their power and become more flexible as employees bring their own devices and preferences to the table,” warns Mossberg.
“In other words, the IT department may no longer be able to dictate that all employees use certain tools like a smart phone from one particular company, for example. Instead, it will have to support how employees want to work. IT personnel will have to embrace a wider range of products and applications, and large companies may no longer be able to corner the corporate marketplace.”

The coming years will be very exciting as various devices and platforms evolve and we enter the post-PC or multi-device era.

Beginning the week of July 5, Mexican trucks are being allowed to operate in U.S. territory under a new deal between the two countries. The deal was a result of an agreement between Mexican President Felipe Calderon and U.S. President Barrack Obama, putting an end to a decade-long trade dispute between the two countries. The original transportation chapter in the North American Free Trade Agreement between Mexico, the U.S. and Canada, allowed Mexican trucks to travel on U.S. highways starting in 1995. But the U.S. refused to allow this provision to take effect, citing security concerns over the Mexican trucks and drivers.

The agreement will provide several benefits to American business. U.S. exporters have pushed for a new agreement since Mexico imposed $2.4 billion in tariffs on U.S. goods after a Bush-era trucking project was shut down.Mexico will suspend 50 percent of its punitive tariffs within 10 days, and suspend the rest when the first Mexican carrier in the program receives operating authority. Mexican tariffs currently range from 5% to 25% on certain U.S. agricultural and industrial products.

The deal is expected to "significantly" improve the competitiveness of Mexico's transportation and export sectors, which target the U.S. as its main market. About 70 percent of Mexican exports are shipped by road. This will allow for much more options in transport that will make Mexico more competitive and at the same time reduce the transportation costs significantly. The expectation is that this should improve the flow of Mexican goods into the United States by making them more cost effective.

The first trucks enrolled in the program could operate within the U.S. as early as the end of August according to Federal Motor Carrier Safety Administration officials. U.S. Transportation Secretary Ray LaHood signed the agreements in Mexico City, infuriating opponents of an agreement that independent truckers and labour groups believe will bring lower-cost and poorly supervised Mexican operators into competition with American drivers.

The agreement will operate similar to the current U.S. arrangement with Canada. Mexican drivers will only be allowed to deliver into America and pick up loads going back to Mexico. They cannot pickup and deliver loads that are not international shipments for their own country.

American truckers see several problems with this arrangement. Many U.S. truckers may not want to go into Mexico as a result of the danger posed by the drug cartels. This could make this a Win for Mexican trucking companies and a Loser for American truckers. If, and when, American truckers decline the hauls going to Mexico, that pretty much gives the entire market to Mexican trucking firms.

The deal raises a number of questions.

1. Will Mexican trucks and truckers meet American safety standards?
2. Will the deal fall under DOC rules and regulations?
3. How many Mexican companies will operate in the U. S?
4. How many trucks will actually come in and out of the U.S?
5. Will they be able to comply with CSA requirements?
6. What happens if they hit 100 points?
7. Will they comply with hours of service regulations?
8. Will their driver logs be correct?

One question nobody is asking is how does the program affect the other NAFTA partner, Canada? Back in 2007, the last time the Mexican truck program was in effect, Canadian officials were not clear on how they would react when a Mexican truck showed up at the Canadian border. Then again, maybe it's not a major issue, since the Canadian market is one tenth the size of the U.S. market and is much more geographically dispersed. Still, it's an issue worth keeping an eye on and if Mexican trucks start showing up at the border. Will Canadian fleets want reciprocity in the spirit of NAFTA or will they be reluctant to take the risks of entering a dangerous market that is so far from home?

I have long been a fan of intermodal transportation since the days I ran one of Canada’s largest IMCs. I continue to monitor developments in this sector with great interest. My sense is that the Intermodal industry, which consists primarily of the railroads, IMCs, shipping lines, draymen and truckers, is positioning itself to take the next big leap forward. Here are some developments to watch.

Shipper Knowledge

Despite all the media attention that intermodal service has garnered over the past 10 or 15 years, there are still a significant number of shippers that are hesitant to switch from truck service. In some cases they were “burned” by service failures in the past and are reluctant to give intermodal a second chance. For other potential users, it is a case of unfamiliarity. This will continue to change.

Some high volume shippers that move boxcars and do their homework will observe that the cost per ton or per pound of using intermodal service as compared to boxcar can be quite attractive on some corridors. While this can pose some challenges for companies on rail sidings that are accustomed to receiving their goods via rail, the economics can sometimes make the switch worth their while.

Diesel Fuel Costs

As the cost of diesel fuel rises, the economics of intermodal service become more compelling. This has always been one of the attractions of intermodal transportation. A train that is pulling a large block of double stack containers is more environmentally friendly and cost effective than shipping the same volume of freight via truck. Over time, as diesel fuel costs rise, this could make intermodal service price competitive on lanes of a little as 750 or possibly 500 miles.

Pricing

The railroads are adjusting their pricing strategy with Intermodal Marketing Companies away from variable to contract pricing. This allows shippers to obtain cost certainty by securing annual contract rates as they do for boxcar pricing. This helps shippers better plan their transportation spend and give them more confidence in committing specific blocks of traffic. While the rates for intermodal service are on the rise, the railroads and IMCs are crafting pricing strategies to ensure intermodal rates are safely below truck pricing.

New Rail Corridors

The class 1 railroads are all making significant investments to support their growth strategies. As an example, Norfolk Southern’s 2500 mile “Crescent Corridor” that stretches from New Jersey to Louisiana is targeting the conversion of 1 million over the road truckloads to intermodal transportation by 2013. UP is upgrading 8 of its 10 major corridors to enable it to compete more effectively with truckers. It is laying a second track to double its capacity on the heavy cross-border L.A. to El Paso “Sunset Route.”

Building Capacity

In addition to investing in their networks, the railroads are investing in containers to move their freight. As an example, UP has added 14,000 containers to the pool it shares with CSX and NS.

Sales and Marketing

UP estimates that there are 11 million truckloads a year that could be available in its territory for conversion to intermodal service while BNSF pegs its’ number at 7 million. Of course these projections are based on certain lengths of haul and heavy volume corridors. These numbers can change if the cost of fuel increases and if the railroads make investments in secondary markets. The latter would serve to reduce the number of dray miles and make the service more price competitive.

The rails and IMCs need to demonstrate service consistency, supply the capacity and provide stable competitive pricing to make the breakthrough they are seeking. They need to then sell this to the target market that consists of shippers moving millions of loads over the road each year. Service performance coupled with effective sales and marketing should produce results.

American Shipper released a new study on Freight Procurement Strategies on June 29, 2011. The study was sponsored by JDA. The results were based on research conducted in May of this year. Data was gathered from over 300 shippers in the manufacturing and retail sectors. Here are some of the key findings.

Freight Costs are on the Rise

Fifty-eight percent of the study participants indicated that their freight costs increased by over 5% in 2011. This compares to 48% in 2010 and 25% in 2009. Seventeen percent experienced a rate increase of less than five percent in 2011 while the comparable figures for 2010 and 2009 were 15 and 12%. The rest of the sample experienced no increase or a decrease in rates. Forty percent agreed to an increase of over 5% on their contract rates in 2011. This compared to 46 and 10% in 2010 and 2009 respectively. Thirty-one percent accepted a rate increase of less than 5% on their contracted rates this year as compared to 17 and 14% for the years 2010 and 2009 respectively.

More Protracted Rate Negotiations

This year rate negotiations are being extended over a longer period of time. Fifty-three percent of the respondents indicated that in 2011 their freight negotiations were completed in less than two months. In 2010 and 2009, the comparable figures were 63 and 70% respectively. Forty-four percent of the sample reported that their negations took 3 to 6 months this year. This compared to 32 and 27% respectively for 2010 and 2009.

Service and Price Become Equally Important

In 2010 Price was ranked the most important element of the bid as compared to 37% for Service. In 2009, the percentages were 63% Price and 27% Service. In 2011, the percentage split is 48% Price and 49% Service.

Centralizing Freight Negotiations Keeps Rate Increases in Check

This segment of the study produced some interesting results. For companies that centralize freight procurement, 10% experienced a rate increase of 10% or more as compared to 23% of decentralized companies. Similarly, 26% of centralized buyers negotiated a rate increase of 5 to 10% as compared to 34% of decentralized purchasers. Clearly, the opportunity to leverage a company’s total freight spend is paying dividends when it comes to controlling freight costs. A centralized approach also improves visibility and carrier compliance, two important elements in controlling freight costs.

Limited Change in Transportation Technology

While the rate negotiation period and the size of the rate increase may have changed over the past couple of years, the technology platform has not. Forty percent of the respondents still use manual processes or spreadsheets to conduct their freight bids. About 27% are using an automated tool. Furthermore, 67% have no plans to automate. This is the same percentage as last year. Only 13% have automation in their budget for the next year. The biggest drivers for adoption are improved data management, efficiency, save time on procurement and achieve lower freight rates.

Over the past few weeks, a number of carriers have signalled their intent to secure rate increases. Despite the mid year economic slowdown, there appears to be momentum to maintain the trajectory of increasing freight rates.