Freight and Logistics - Industry Edge - Vol. 15

Freight and Logistics Edition, Issue 15, Winter 2014

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Freight and Logistics Edition 5 Operational efficiencies enable carrier self-sufficiency Fleets worldwide have been facing a seemingly endless series of hurdles. For one thing, trucking is just one part of a competitive multimodal freight system—sea, rail, air, and road—so it must integrate vertically or offer multimodal partner solutions to meet customers' transportation needs. For another, according to Research and Markets, "the global road freight sector is typically fragmented, as there are relatively low barriers to entry1." Nonetheless, in the U.S. alone the 50 largest companies account for 40% of revenues, and economic downcycles have led to a decline in smaller-sized carriers2. And because demand is driven by consumer spending and manufacturing output, the profitability of individual companies depends on a business's capability to quickly scale operations to meet market fluctuations. Still, while fundamental changes in industry operations will be required to meet changing market demands, trucking companies don't necessarily have the dollars needed to modernize their legacy applications. Fleet 1 2 managers are thus proceeding cautiously, cutting costs wherever possible and demanding more from business solution providers before committing tight resources to help ensure they make the right investments at the right time. Research and Markets, http://www.researchandmarkets.com/reports/1056340/trucking_global_industry_guide HP and First Research industry profile on the trucking industry, February 4, 2013

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