ILMA Compoundings September 2018 - 27
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Osiecki said carriers are also turning to newer equipment
with the latest creature comforts and safety technologies,
which can appeal to drivers.
"One interesting thing I heard recently from a large
[truckload] carrier is that their driver pay increase actually
reduced their driver productivity," he said. "That is, once
drivers hit a certain income threshold for the week, they
back off and don't work as hard. That carrier is now struggling to figure out how to get back that productivity."
Even if trucking companies can get drivers, Delco said,
carriers need to be careful about adding too much capacity
in this type of environment. "This is still a cyclical industry,
and there will continue to be good times and bad times; the
most efficient and cost-conscious carriers will be the ones
that survive in the end," he said.
However, the capacity crunch is propelling efficiencies
in the supply chain, such as faster loading and unloading
times. "All signs are saying trucking capacity will be tight as
energy prices stay elevated, and if the general unemployment
rates stay low, finding drivers will be tough."
said, adding that he has seen weight-per-shipment trends
increase in less-than-truckload, or LTL, which suggests that
truckload freight is spilling over into the LTL market.
In addition, North American rail volume for the first 25
weeks of 2018 was 17,975,309 carloads and intermodal
units, up 3.2 percent compared with 2017.
Delco has said he has heard from large big-box retailers
that more freight is moving to the rails, which are absorbing
capacity with intermodal and boxcar loads. "How much
capacity the rails are willing to provide to ease the pressures
we're seeing in truckload is yet to be determined," he said.
Going Other Routes
Shippers might also be seeking out alternatives to truckload
shipments.
"When you can't find capacity, freight will move to the
path of least resistance. In some instances, it moves to the
less-than-truckload industry, which has more scheduled
pickups and palletized freight under 10,000 pounds," Delco
27
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ILMA Compoundings September 2018
Table of Contents for the Digital Edition of ILMA Compoundings September 2018
LETTER FROM THE CEO
INSIDE ILMA
WHAT’S COMING UP
INDUSTRY RUNDOWN
ROUGH ROAD AHEAD
A BRIEF HISTORY OF BASE OILS
BUSINESS HUB
COUNSEL COMPOUND
WASHINGTON LANDSCAPE
IN NETWORK
PORTRAIT
ILMA Compoundings September 2018 - Cover1
ILMA Compoundings September 2018 - Cover2
ILMA Compoundings September 2018 - 1
ILMA Compoundings September 2018 - 2
ILMA Compoundings September 2018 - LETTER FROM THE CEO
ILMA Compoundings September 2018 - INSIDE ILMA
ILMA Compoundings September 2018 - 5
ILMA Compoundings September 2018 - 6
ILMA Compoundings September 2018 - 7
ILMA Compoundings September 2018 - 8
ILMA Compoundings September 2018 - 9
ILMA Compoundings September 2018 - 10
ILMA Compoundings September 2018 - 11
ILMA Compoundings September 2018 - WHAT’S COMING UP
ILMA Compoundings September 2018 - 13
ILMA Compoundings September 2018 - INDUSTRY RUNDOWN
ILMA Compoundings September 2018 - 15
ILMA Compoundings September 2018 - 16
ILMA Compoundings September 2018 - 17
ILMA Compoundings September 2018 - 18
ILMA Compoundings September 2018 - 19
ILMA Compoundings September 2018 - 20
ILMA Compoundings September 2018 - 21
ILMA Compoundings September 2018 - ROUGH ROAD AHEAD
ILMA Compoundings September 2018 - 23
ILMA Compoundings September 2018 - 24
ILMA Compoundings September 2018 - 25
ILMA Compoundings September 2018 - 26
ILMA Compoundings September 2018 - 27
ILMA Compoundings September 2018 - 28
ILMA Compoundings September 2018 - 29
ILMA Compoundings September 2018 - A BRIEF HISTORY OF BASE OILS
ILMA Compoundings September 2018 - 31
ILMA Compoundings September 2018 - 32
ILMA Compoundings September 2018 - 33
ILMA Compoundings September 2018 - BUSINESS HUB
ILMA Compoundings September 2018 - 35
ILMA Compoundings September 2018 - COUNSEL COMPOUND
ILMA Compoundings September 2018 - 37
ILMA Compoundings September 2018 - WASHINGTON LANDSCAPE
ILMA Compoundings September 2018 - 39
ILMA Compoundings September 2018 - IN NETWORK
ILMA Compoundings September 2018 - 41
ILMA Compoundings September 2018 - 42
ILMA Compoundings September 2018 - 43
ILMA Compoundings September 2018 - PORTRAIT
ILMA Compoundings September 2018 - Cover3
ILMA Compoundings September 2018 - Cover4
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