What’s happening: It’s almost time for LINK: The Retail Supply Chain Conference, where thousands of supply chain decision-makers, freight-movers, and logistics pros get together to unpack the massive challenges of moving goods in a fast-changing market.  

Why it matters: Let’s do the math: 75+ shippers, 40 carriers, 40 3PLs, five railroads, 10 port authorities, and 25+ technology companies serving transportation and logistics, warehousing, and equipment OEMs. This is where the industry goes to talk shop.

The bottom line: We’ve got five tips for making the most of this event from a U.S. Xpress leader who’s been working this conference for more than a decade. Dig in to get the most from your time at LINK. We’ll see you there!

Moving retail freight is a massive business, but the drive to get it done every day doesn’t always come with chances to connect, compare, and problem-solve across the industry. That’s where LINK: The Retail Supply Chain Conference comes in. 

“This is the number one opportunity to connect with the largest shipper partners all at one location,” said John Edwards, head of Dedicated Sales for U.S. Xpress. “There are more than 2,000 supply chain leaders in one place, from the top 75 shippers and top 40 carriers to the top 40 3PLs, from 10 port authorities and five railroads – you name it, they’ll be there.”

The broad scope of the event — scheduled this year for Feb. 19-23 in Orlando, Florida — means that it takes a ton of planning to make the most of the time. The top priority is always connecting with customers in person, having direct and productive conversations about what’s working and what needs work when it comes to making their goods move better.

“These are invaluable conversations with massive retailers that rely on us to get their goods to store shelves every day,” John said. “We spend months planning to work this event nonstop, making sure our team is connecting with the businesses we serve and looking for opportunities to adapt to serve their needs as the market shifts.”

In addition to a valuable forum for conversations with customers, the LINK event gives large shippers and leading carriers the chance to connect and learn from each other, as well.

“It’s a big, competitive business, but it’s also a tight network of professionals who share a lot of the same challenges and experiences,” said John, who has been working the LINK conference for a decade. “There’s a lot of value in talking shop with your peers, whether you’re a retailer or a shipper.”

Here are John’s top five tips for making the most of the LINK conference:

1. Plan ahead. Way, way ahead. Register early! Ideally, you register at one conference for the following year so you can start planning for your team to get there and get to work.
2. Get business meetings on the books. Lock in meetings early and often. Start a few months before the event and get as many set up as possible. This is the best event to get in front of as many partners, peers, and prospects as you can in a short period.
3. Meal time is prime time. Business breakfast, lunch, and dinner on all days is a must. Bring your partners to the table to celebrate the prior year, lay a foundation for the upcoming year, talk growth, diversification, and new opportunities to move goods better.
4. Play booth sides. Time in your company’s booth on the conference floor is also important. Chat up your peers and prospects, make new friends, explore opportunities, and interact with everyone who stops by.
5. Class is in session. Work in as many relevant breakout sessions and keynote speakers as possible. There is a wealth of information and engagement to be had within the event with a ton of industry leaders, shipper partners, and peer competitors.

We’re counting down the days until this event, and can’t wait to see everyone at LINK. Got tips of your own for making the most of our time together? Share them here, or get in touch at RILA@usxpress.com.

What’s happening: Rates have slipped, demand for capacity is down, and costs remain high. It may be a tough time to be a carrier, but that also makes it a good time for shippers and receivers to simplify their relationships and maximize service in the new year.

Why it matters: As consumer habits changed over the last two years, many shippers had to shop hard for capacity, expand their networks, and pull in partners from all over the industry to get goods moved. The result was a lot of complexity and, in some cases, inconsistent service.

The bottom line: As the market takes a breather, shippers are in a good position to strike a balance between a favorable rate and good service, and to lock in contract rates to ensure they’re covered when the pendulum swings again.

As 2023 dawns, demand for capacity is down, rates have slipped, and the usual year-end freight-hauling peak didn’t materialize in the fourth quarter of 2022. In many ways, it’s a tough time to be a carrier, but the outlook isn’t entirely bleak — particularly for shippers and receivers looking for the chance to simplify their relationships and maximize service in the new year.

Paul Bowman, Senior Vice President of Sales and Lee Thigpen, Vice President of Revenue Management

The experts at U.S. Xpress have seen just about every trucking market you can imagine, from the buck-wild freight boom of barely a year ago (seems longer, doesn’t it?) to the lulls that reliably come along now and again in a market that has always been driven by cycles and seasons.

Paul Bowman, the senior vice president of sales for U.S. Xpress, has been working the freight markets and collaborating on customer needs for 30 years. Lee Thigpen, vice president of revenue management for U.S. Xpress, has spent 19 years tracking trends and wrangling the financial realities of the industry. They’ve both seen a little bit of everything, and they have four predictions and recommendations for anyone with freight to move in 2023.

1. Expect a slow, wide turn

The first two months of the quarter are typically a slow season, with demand for moving freight staying low in January and February, and gradually ramping up in March as spring fever drives consumer spending. But any run-up in demand this March may be cooler than usual. Instead, the optimists are calling for demand to start increasing near the end of the second quarter of 2023. There are some key indicators that give us reason to expect demand to grow sooner than later, including good job growth reports, and the fact that this dramatic slowdown is really more like a return to normalcy after an exceptionally wild ride. No one is counting on a rapid rebound anytime soon, but the picture isn’t as grim as the headlines might have you believe.

2. Shippers are on clean-up duty

During this slower market, we’re seeing many customers take the opportunity to reset their budgets and reallocate their carrier base. The last two years — which brought a seismic, pandemic-fueled shift in consumer habits — had many shippers scrambling, shopping hard for capacity, expanding their networks, and pulling in partners from all over the industry to get goods moved. At the height of the boom, some of them resorted to overbooking loads, moving significantly more inventory than they strictly needed to because it was a reliable way to get the attention of carriers inundated with opportunities to move freight. Now inventories are bloated, and all that outreach created complexity and inconsistency in both service levels and relationships.

In a world where the pendulum has swung and shippers have more options, they generally like to deal with just a few carriers. The key now is to focus on service, to take advantage of this relatively calm window to establish and expand partnerships with the right providers that can consistently supply capacity, get the right strategic fit for their networks over the long term, and secure a commitment to service levels.

3. More carriers bow out

One reason the freight markets feel loose at the moment is that so many new entrants jumped into the industry and rode the wave during the pandemic freight boom. Many of them are still out there hustling, but it’s getting harder every day — particularly for smaller trucking outfits that are new to the cycles and demands of the industry. Equipment and fuel costs remain high, even as demand falls off, and spot rates have slipped precipitously. Smaller carriers also don’t have sales teams, so they rely on brokers and load boards to keep moving, but those environments are slowing down as shippers regroup and reset. We saw some carriers go under at the end of 2022, and we’ll see more in the first quarter of 2023.

4. The rate stuff

Rates make big news in this environment, and shippers are on the hunt for a good balance between a favorable rate, reliable service levels, and performance consistency. There’s a threshold beyond which a lower rate isn’t going to deliver the results shippers need, but in a market where there’s plenty of capacity to go around, there’s always the temptation to price shop. Rates may not come down much more than they already have, however, given the realities of funding trucking operations. The spot market in particular is putting a real squeeze on carriers that rely on it for profitable one-off runs — those rates have come down to a level where they often don’t support operational costs for carriers. If you’re a carrier with a heavy dose of spot, you’re hurting. Shippers are in a good position to strike a balance between a favorable rate and good service, and to lock in contract rates to ensure they’re covered when the market shifts. And the market will shift. It always shifts. It’s just a question of when.

What’s happening: The multiple complex systems known collectively as ‘the supply chain’ never stop evolving. What was true a decade ago — or even five years ago — often doesn’t apply anymore.

Why it matters: For shippers, the constantly shifting nature of the world of freight requires versatility in their partnerships. For carriers, it means a commitment to endless study of how logistics and freight function.

The bottom line: Shippers and carriers are in this together when it comes to lifelong learning about what works in the world of freight, and how we can make it work better.

An expert perspective: Hear more from Dr. Chris Caplice in this video.

Dr. Chris Caplice probably knows as much as anyone on the planet about the many-faceted universe we call the supply chain. After all, he’s the chief scientist at DAT Freight and Analytics and executive director of the Massachusetts Institute of Technology Center for Transportation and Logistics.

But no matter how much we know, the job is never done when it comes to learning how to move goods better, Dr. Caplice said during PartnerShip, the premier U.S. Xpress partner summit and showcase for some of our top industry experts. 

“People have finally recognized that’s it a lifelong education, and you need to do it throughout your career because things are moving too fast,” he said.

What was true a decade ago — or even five years ago — often doesn’t apply anymore. That’s why education has evolved to offer ‘micro-master’s’ degrees to sharpen skills in specific areas, Dr. Caplice said. 

“I might need to learn about drop-and-hook or customs clearance,” he said. “I need bite-sized education throughout my career.”

For shippers, the constantly evolving nature of freight requires versatility in their partnerships, Dr. Caplice said.  

“As a shipper, you should have a portfolio of options,” he said. “You have dedicated — something that is steady state, high volume — you don’t need to involve anyone else in it, and you can keep that driver and that truck utilized.”

Meanwhile, less predictable shipping needs require a different approach.

“If it’s high volume and not as balanced, maybe you go to contract, to over-the-road trucking,” he said. “But if you have lanes that happen very infrequently, it doesn’t make sense to have a contract for those. That’s where I’m arguing that they should go pure dynamic.”

A recent partnership between MIT and U.S. Xpress is a good example of efforts to find tactical ways to help boost the effectiveness of freight planning. Graduate students worked with U.S. Xpress to study dwell — the time drivers spend waiting instead of driving — and discovered some consistent themes.

“The shortest dwell happens during the busiest times,” Dr. Caplice said. “We expected that during the peak hours you’d see the longer dwell, but what you see is during peak hours the receivers are faster, their labor is up to the right level, they can process faster. The big dwell happens during off hours.”

The students also discovered dwell is less likely to happen the more frequently a driver visits a site, and that can become good guidance for dispatchers in assigning loads, Dr. Caplice said.

During the pandemic, awareness of the supply chain has helped broaden understanding of its complexity, he added.  

“The words ‘supply chain’ became part of the vernacular. I no longer have to explain to people what I do,” Dr. Caplice said.

“People think ‘the supply chain’ broke, and there is not ‘a supply chain.’ I think people have realized that it’s very complicated. They’ve gained an appreciation for what normally happens and they don’t even know it happens.”

What’s happening: Hurricane Ian is the latest example, and one of the most dramatic, of how U.S. Xpress prepares for and responds to disaster.

Why it matters: Through our extensive logistics and trucking network, U.S. Xpress has deep resources to commit to recovery efforts.

The bottom line: There’s no higher use of our resources than helping our customers, employees, and friends during an emergency.

When weather emergencies or other crises threaten to damage property and tangle the supply chain, U.S. Xpress teams coordinate closely to support customers and communities and come to the aid of team members who live in impacted areas.

“First and foremost during any disaster, we need to protect our people and our assets,” said Chris Morris, director of public safety and security for U.S. Xpress. “Then, as quickly as we safely can, we get our drivers moving to carry the freight that supports recovery.”

Among the steps U.S. Xpress takes to support storm and disaster recovery:

• Assessing the impact to our employees and our equipment, and deploying resources to support both driver and mechanical needs.
• Aligning with our customers who have emergency response materials they can distribute through our network.
• Positioning equipment where it can aid in response and recovery.
• Coordinating with partners and resources across our industry to maximize the impact we can have in collectively responding to needs before and after the major weather event.
• Deploying our Xpress Cares funds to help team members who have been impacted by this storm. This long-standing U.S. Xpress program provides employee-to-employee giving for those experiencing financial hardships.

Our plans for storm response were in motion even as Hurricane Ian was forming, and U.S. Xpress logistics and trucking experts met multiple times a day to report on impacts and mobilize people and materials.

One of the deadliest and most devastating storms in the history of Florida, Hurricane Ian made landfall near Ft. Myers as a Category 4 storm with sustained winds of 155 mph. U.S. Xpress stayed in close contact with customers in the area while navigating the challenges of safely moving drivers and equipment into locations where they could respond once the storm cleared.

“Service interruptions and equipment issues created significant challenges we have worked around the clock to address, particularly in Florida,” Morris said. “But there’s no higher use of our resources than helping our customers, employees, and friends during an emergency.”

The recovery from Hurricane Ian will be a massive effort that will snarl supply chains and industries from agriculture to manufacturing in the region and beyond. The storm unleashed an estimated $60 billion to $100 billion in damage, and U.S. Xpress will be engaged in supporting recovery over the long term.

“Through our extensive logistics and trucking network, we have deep resources to commit to this effort,” Morris said. “We will stay close with our customers and team members to offer solutions as we all work together to recover from this destructive storm.”

What’s happening: With a massive rail strike looming, the whole country got a fast lesson in how much of our supply chain is tied to the tracks, but trucking companies and shippers already knew what was at stake.

Why it matters: Freight rail is pivotal to moving essential goods and services across the U.S. — from energy to power homes to the food in grocery stores. Much of the cargo that ends up on trucks travels by train to get there, and a strike could have cost the economy an estimated $2 billion a day.

The bottom line: Though the strike was averted just before it was scheduled to begin, working in contingency mode to prepare for it was a valuable reminder of the critical role trucks play in keeping the economy moving. Whether it’s a pandemic, a rail strike, or a hurricane, a strong contingency planning mindset is critical.

With a massive rail strike looming, the whole country got a fast lesson in how much of our supply chain is tied to the tracks, but trucking companies and shippers already knew what was at stake.

Freight rail is pivotal to moving essential goods and services across the U.S. — from energy to power homes to the food in grocery stores. Much of the cargo that ends up on trucks travels by train to get there, and a strike could have cost the economy an estimated $2 billion a day.

“Freight rail is a crucial part of an integrated network of trains, trucks and barges that ships around 61 tons of goods per American every year,” according to the website for the Association of American Railroads, an industry group.

Though the strike was averted just before it was scheduled to begin, working in contingency mode to prepare for it was a valuable reminder of the critical role trucks play in supplying homes and businesses across the country. Whether it’s a pandemic, a rail strike, or a hurricane, a strong contingency planning mindset is critical.

“This particular crisis didn’t materialize, and we’re glad for that, but we are always ready to do whatever it takes to support our customers no matter what curve balls come our way,” said Julie Van de Kamp, senior vice president of Customer Experience for U.S. Xpress. 

When talk of a rail strike surfaced, supply chain experts estimated we’d need hundreds of thousands of additional trucks on the road every day to pick up the slack and keep goods moving — a staggering increase in demand.

“Idling all 7,000 long distance daily freight trains in the US would require more than 460,000 additional long-haul trucks every day, which is not possible based on equipment availability and an existing shortage of 80,000 drivers,” said Chris Spear, CEO of the American Trucking Associations in a letter to Congress.

At U.S. Xpress, the earliest hint of a potential rail strike sent teams into contingency mode, mapping out plans to support shippers and contacting customers to develop strategies for keeping their goods moving. Some customers got ahead of the potential strike and worked proactively with U.S. Xpress to divert shipments that would have gone from rail to truck directly to truckload.

“We knew a rail strike would put greater overall volume into the truckload market, similar to hurricane preparedness, so we worked closely with our customers on how to help,” Van de Kamp said. “We have a history of servicing crisis or project-related activities, so we’re well-positioned to be a resource for those customers affected.”

Teams got to work planning to move trucking resources toward impacted origin spots on the coasts, and positioning trailers to anticipate increased demand. Across the company, leadership pulled together resources to educate internal teams on the potential outcomes of the strike, and distributed information to drivers about how their work might shift if the strike occurred.

“We had regular cross-departmental meetings to ensure we were prepared across the board to support our customers and do everything we can to keep freight and our economy moving,” Van de Kamp said.

What’s happening: With apples largely coming from the North and West, and wood pellets often originating in the South, they demand capacity across the map.

Why it matters: These high-priority seasonal goods are just two examples of the year-round surges that create geographical hot spots for shippers and carriers.

The bottom line: Preparing for shipping surges takes planning and partnership with a carrier that serves diverse industries and offers a range of solutions.

As summer winds down and fall fires up, two products that herald the arrival of autumn are on the move. Apples and wood pellets may not seem to have much in common at first glance, but their simultaneous peak seasons make them partners in a quirky surge that’s just the latest in a year-round cycle of demand.

“In the spring it’s patio furniture, during the holidays it’s Christmas trees, in the summer it’s beverages,” said Paul Bowman, senior vice president of enterprise sales for U.S. Xpress. “There’s always a surge happening somewhere, and while apples and wood pellets may not be as obvious as pumpkins at Halloween, we know every year to prepare for that demand.”

The most popular fruit in the U.S. has its peak season in September and October, rolling into far-flung markets from top apple-producing states including Washington, New York, Michigan, Pennsylvania, and California. In 2021, The U.S. apple harvest added up to almost 10 billion pounds of apples, and favorable growing condition in 2022 may mean an even bigger crop. 

Meanwhile, wood pellets, which heat homes, barns, and businesses in cold climates all winter long, are typically produced in the South. These small-but-mighty fire-feeders are made from wood waste such as sawdust and scraps, and they’re on the move in big numbers every year beginning in September. About 58% of North America’s wood pellet capacity sits in the South, and the region’s production capacity has increased more than fivefold since 2009.

“You have apples largely coming from the North and West, and wood pellets often originating in the South, so there are unique capacity challenges in these markets during this time,” Bowman said. “U.S. Xpress hauls goods for a wide variety of industries – including the folks who have unique supply chain needs as fall rolls in.”

With the experience and the resources to anticipate demand and work through surges, U.S. Xpress is always ready for capacity shifts, he said. And in addition to asset-based resources, U.S. Xpress can tap into its brokerage solutions to balance the load, Bowman added.

“Our history of success serving clients in this space and our ability to anticipate demand, while simultaneously applying the right resources to keep goods moving, means we can take seasonal surges in stride,” he said.  

What’s happening: The pandemic broke up a lot of asset-based truck driving teams (it’s tough to social distance in a cab). That shift delivered disruptions for shippers who counted on those team drivers to move their freight quickly.

How we solved it: Adding a customized, power-only brokerage solution for a longtime U.S. Xpress customer ensured they didn’t miss a beat when many of the asset-based team drivers they had always counted on had to split up.

The bottom line: When things change fast, carriers and shippers have to react even faster. Tapping into new solutions, collaborating creatively, and reimagining longstanding processes are all ways to keep goods moving better.

Shippers who relied on team drivers to move their freight fast had to scramble for new solutions when the pandemic threw a wrench into that tried-and-true system. It’s tough to social distance in a cab, and many asset-based teams that weren’t made up of family members split up when COVID-19 hit.

For one longtime U.S. Xpress customer shipping high-value beauty products and apparel, asset-based team drivers had always been their goods-moving mainstay. When those resources grew scarce, a customized solution that began as a stopgap turned into a winning everyday play.

U.S. Xpress tapped its Xpress Technologies brokerage group to send third-party trucks and their team drivers to haul loads for this shipper, but also arranged for U.S. Xpress trailers to be dropped on-site for loading at any time that was convenient for them. This power-only brokerage solution tapped smaller carriers whose teams tend to be family members, and quickly closed the gap that the pandemic created in the asset-based team driver model. In fact, the solution worked so well that the customer decided to stay with that approach for the long term.

“We understand their network, what they need, and how they operate,” said James Rockwell, enterprise sales VP for U.S. Xpress. “Because of this, we were able to present a solution that provided the missing pieces and knew it would be valuable.”

A long-term history of great asset-based service gave the customer confidence that the creative solution could solve this challenge, despite the fact that they were new to the brokerage side of the business.

“We mobilized to provide that solution quickly and showed the customer that they can do it, the commitment is there, the service is there, the capacity is there,” James said. “There has to be a lot of trust and understanding on both sides for something like this to work – that is a key ingredient.”

By providing the resources of an asset-based carrier that also has a brokerage arm, U.S. Xpress is in a good position to quickly pivot when conditions change. That ability, and the willingness of the shipper to go along for the ride, meant their business didn’t miss a beat, even at the height of the pandemic disruption.

The drab days of winter are behind us, and soon your schedule will be filled with summer staples: picnics, bike rides, backyard games, the ritualistic Saturday morning lawn mowing, water sports, and yes, the requisite summer cookout.

All those parties, get-togethers, and home improvement projects combine to create an annual spring shipping surge in anticipation of summer. And this one is shaping up to be a doozy: The National Retail Federation is predicting near-record import levels heading into summer. Shippers are working overtime to make sure the shelves are stocked before consumers rush to clean them out.

The spring surge, like other seasonal demand cycles, puts a strain on the entire supply chain. Regardless of your role, we all feel the squeeze. Flexibility becomes the name of the game for shippers. Here are three time-tested strategies to help you navigate the strains of the season.

Pick off-time load and unload schedules

Sometimes being flexible is as simple as the old “be where they ain’t” strategy. Carriers have more demand than they can feasibly service, so temporarily shifting load and unload times to unconventional hours gives carriers a larger window to work with. If the typical working hours are filled, try offering load and unload times when carriers won’t be covered by fulfilling spring demand.

Use a daily load and unload plan to support your operation

How prepared are you for incoming trailers? Many professional drivers pull in to find shippers unprepared to receive their load, leaving them stranded and losing money. For drop-and-hook loads, is the empty trailer ready? Or will drivers need to spend hours chasing a trailer? Conversely, if you don’t have empty trailers available, have you communicated this to the carrier? Surprising a professional driver when they arrive can cause delays, making them to be late to their next load. Preparation and planning are strong buoys during demanding shipping seasons.  

Consider using brokerage to meet surge capacity needs

Modern brokerage is embracing new technology solutions that give shippers unparalleled extended capacity. All the freight acceptance, revenue management, and fleet management are in one place, creating a more transparent environment for both shippers and carriers. When you need capacity at a moment’s notice, brokerage is often a shipper’s best friend.

Conclusion

Like other demand cycles, we’re all affected — no link in the supply chain is left untouched. Shippers need their goods moved, and carriers are trying to service as many loads of those goods as possible. With a bit of flexibility, creative solutions like brokerage, and proper planning, we’ll all be relaxing around a fired-up grill in no time.