2019 Challenging Economic Conditions for Transporters
Australia is seeing some similarities with the American Transport market. The old saying “what goes up, must come down” is currently ringing in the ears of both country's Transporters.
After the markets boomed in 2017-2018, the economy has hit 2019 with descriptions of… soft, slowing, bloody and quite mutterings of recession.
Contributing factors to the tighten of freight pricing:
Decrease in freight volume
Oversupply of transport capacity
Amazon/Ebay effect (free shipping) of re-engineering purchaser’s minds that freight is free or a minimal cost at most.
Reduced Business Acumen. The bar is set low for entry into the Transport industry. All it takes is a heavy drivers license, truck/trailer and a desire to drive.
So what’s the answer..?
"Don’t just hope, that your business gets better… Plan for it."
Watch Below as Louis Mosca, Executive VP of AMS Inc. shares some of his industry insights:
1.What does it cost you to transport a load?
Don’t move anywhere without knowing what it will cost you. Daily. Be aware of the cost per kilometre for every vehicle, trailer combination that you have. To not know this is business suicide.
2. Driver Retention Strategy Have a specific strategy for each driver. It’s a career, not just a job. Consider reviewing this once a quarter, so you know and they know that the future is secure. Remember it’s not just about salary… “I’ve got your back. You’re part of the family.”
3.Pay for performance Consider tying payments to incremental profits.
Read the full articles below.