{"id":56308,"date":"2022-11-23T10:00:00","date_gmt":"2022-11-23T08:00:00","guid":{"rendered":"https:\/\/fdlgroup.gr\/?p=56308"},"modified":"2022-11-23T10:00:25","modified_gmt":"2022-11-23T08:00:25","slug":"ask-not-what-will-happen-in-the-transportation-market-next-year","status":"publish","type":"post","link":"https:\/\/fdlgroup.gr\/en\/logistics-en\/ask-not-what-will-happen-in-the-transportation-market-next-year\/","title":{"rendered":"Ask Not What Will Happen In The Transportation Market Next Year"},"content":{"rendered":"<p>What do you think is going to happen in the transportation market next year?<\/p>\n<p>I get asked that question a lot this time of the year. It happened at dinner this past Monday night at the\u00a0<a href=\"https:\/\/web.cvent.com\/event\/6953f169-3ca4-47b5-9d63-9a7c3f6cf6f4\/summary\">Deliver 2022 conference<\/a>.<\/p>\n<p>My answer is always the same: I have no idea.<\/p>\n<p>Neither does anybody else, at least not with any certainty.<\/p>\n<p>Benjamin Franklin, in a letter to Jean-Baptiste Le Roy in 1789, famously wrote that \u201cIn this world, nothing is certain except death and taxes.\u201d Those two things we can be sure of; everything else, not so much.<\/p>\n<p>Uncertainty, therefore, is not something new that transportation professionals have to deal with. It has always existed, and it is here to stay.<\/p>\n<p>I understand why people ask the \u201cWhat\u2019s going to happen\u201d question, but the sad truth is that the answer doesn\u2019t really matter for many companies; they\u2019ll be behind the eight ball no matter what happens.<\/p>\n<p>What they should ask instead is, \u201cDo we have what we need to respond quickly, intelligently, and effectively to whatever happens down the road?\u201d<\/p>\n<p>Among the things you need:<\/p>\n<ul>\n<li>Transportation Management System, including procurement capabilities<\/li>\n<li>Real-time visibility to market rates and capacity<\/li>\n<li>Access to a large network of carriers, including a core set of strategic partners<\/li>\n<li>Knowledgeable and experienced people<\/li>\n<\/ul>\n<p>It\u2019s not a complete list, but it\u2019s a good start. And you don\u2019t need to check off all the items yourself; you can partner with a third-party logistics provider for help.<\/p>\n<p>Will next year be a shipper\u2019s market or a carrier\u2019s market?<\/p>\n<p>I\u2019ve been an industry analyst for more than 23 years and I\u2019ve often heard people characterize the transportation market in those terms. It is a classic supply-and-demand situation. When freight capacity exceeds freight demand, there are plenty of trucks available in the market. This causes carriers to compete more aggressively for business, which results in lower rates, which benefits shippers \u2013 and hence you have a so-called shipper\u2019s market.<\/p>\n<p>But we all know that the transportation market is cyclical and the pendulum ultimately swings in the other direction. When freight demand exceeds freight capacity, there aren\u2019t enough trucks to cover all of the loads being tendered. Tight capacity allows carriers to be more selective in the shippers and lanes they serve, and it also puts upward pressure on rates, which benefits carriers \u2013 and hence you have a so-called carrier\u2019s market.<\/p>\n<p>Back and forth the pendulum goes. Sometimes it\u2019s the shippers who get to feast, other times it\u2019s the carriers. The reality, however, is that there\u2019s no such thing as a shipper\u2019s market or a carrier\u2019s market. There is only one transportation market.<\/p>\n<p>Which raises another important question: Within this one market, how can shippers and carriers create lasting collaborative relationships that are mutually beneficial regardless of the market cycle? How can they establish and manage relationships that smooth the peaks and valleys in rates and capacity?<\/p>\n<p>It\u2019s a question that has vexed shippers and carriers for many years. Finding the answer requires both sides to trust each other more. Will next year be the year it begins?<\/p>\n<p>Source: https:\/\/talkinglogistics.com\/2022\/09\/14\/ask-not-what-will-happen-in-the-transportation-market-next-year\/<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What do you think is going to happen in the transportation market next year? I get asked that question a lot this time of the year. It happened at dinner this past Monday night at the\u00a0Deliver 2022 conference. My answer is always the same: I have no idea. Neither does anybody else, at least not&hellip;<\/p>\n","protected":false},"author":1,"featured_media":56306,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[274,281],"tags":[],"class_list":["post-56308","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-logistics-en","category-supply-chain-en","category-274","category-281","description-off"],"_links":{"self":[{"href":"https:\/\/fdlgroup.gr\/en\/wp-json\/wp\/v2\/posts\/56308","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fdlgroup.gr\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fdlgroup.gr\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fdlgroup.gr\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/fdlgroup.gr\/en\/wp-json\/wp\/v2\/comments?post=56308"}],"version-history":[{"count":1,"href":"https:\/\/fdlgroup.gr\/en\/wp-json\/wp\/v2\/posts\/56308\/revisions"}],"predecessor-version":[{"id":56309,"href":"https:\/\/fdlgroup.gr\/en\/wp-json\/wp\/v2\/posts\/56308\/revisions\/56309"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fdlgroup.gr\/en\/wp-json\/wp\/v2\/media\/56306"}],"wp:attachment":[{"href":"https:\/\/fdlgroup.gr\/en\/wp-json\/wp\/v2\/media?parent=56308"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fdlgroup.gr\/en\/wp-json\/wp\/v2\/categories?post=56308"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fdlgroup.gr\/en\/wp-json\/wp\/v2\/tags?post=56308"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}