Critical Issues and Trends for Motor Carrier Transportation

1
Critical Issues and Trends for Motor Carrier
Transportation
2
Capacity Crunch

• Rebounding economy
• New truck emission requirements
• Truck driver hours-of-service rules
• Driver shortage (demographics security and
  safety regulations)

3
Congestion Problems

• Roads around cities (8B in 1982 - 70B in 2001)
• At ocean ports
• At inter-modal facilities
• At border crossings (U.S.-Mexico)
• Increased costs fines for sitting idle in ports
  road-use fees reduced capacity utilization

4
Security

• More random inspection of cross-border trucking
• Increased employee screening (particularly for
  hazmat)
• Facility security
• Increased security regulations (e.g., food
  products, hazmat)

5
Security, cont.

• Greater emphasis on risk management throughout
  supply chain physical security sourcing
  implications etc.

6
Some Solutions

• Unattended and off-peak deliveries (e.g.,
  drop-and-hook turnkey operations)
• Extended gate hours at ports, DCs, etc.
• Improved shipping/receiving operations

7
Solutions, cont.

• Surcharges and detention fees
• Infrastructure expansion and improvements
• Improved administrative processes and procedures
  (e.g., C-TPAT)
• Strategic alliances and collaborative
  partnerships

8
Technology

• Satellite communications
• Mobile communications
• Vehicle sensors
• Electronic seals
• Dynamic dispatch systems
• Longer Combination Vehicles (safety issues,
  however)
• On-line bidding (procurement)

9
Safety

• Increased importance in carrier selection
• Primary regulator FMCSA
• Driver issues
• Fatigue
• Substance abuse
• Vehicle issues
• Fitness
• Size and weight

10
Financial Stability

• Bankruptcy rate in trucking industry increased
  markedly after economic deregulation
• Operating ratio key financial performance
  metric
• Financial stability is a key criterion in carrier
  selection because of impact on
• Long-term relationship
• Carrier service performance
• Carrier safety performance