1 / 31

National Association of Steel Pipe Distributors

The Challenges of Trucking Today Presented by Don Thornton, VP TransCore. National Association of Steel Pipe Distributors. February 25, 2005. © 2004 TC IP, Ltd. All rights reserved. All trademarks are the property of their respective owners. Agenda. TransCore Overview

manoush
Download Presentation

National Association of Steel Pipe Distributors

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Challenges of Trucking Today Presented by Don Thornton, VP TransCore National Association of Steel Pipe Distributors February 25, 2005 © 2004 TC IP, Ltd. All rights reserved. All trademarks are the property of their respective owners.

  2. Agenda • TransCore Overview • Customer Profile – InTransit • Economic Update: What is driving freight demand? • Trucking Demand: What are the trends? • Capacity: Additional limiting factors • What can I do to get capacity?

  3. TransCore Overview

  4. TransCore – Industry Leader • More than 65 years in the transportation industry • Installations in 41 countries • More than 1,800 employees in 80+ locations

  5. Freight Matching and Exchange Spot market freight matching More than 18,000 customers Multiple customer access points Private online trading communities Additional services available

  6. Freight Services • North America’s largest network with more than 45,000 users posting shipment and equipment availability • 220,000 to 500,000 shipments posted daily • More than 60,000 daily truck listings • Media/Electronic access to ~1.2M trucks • Multi-media access via the Internet, call center, fax, and server-to-server integration

  7. Truck Stop Services • Uniquely positioned national network of 1,200 load monitors and 150 call boards • 1.2 million “looks” a day • Real-time information on loads, jobs, weather and news • Exclusive agreement with the two largest chains and 600 independent truck stops

  8. Media: Digital Signage and Call Board • Intermediary and advertiser access to Drivers and Consumers • Digital Signage Media rotate advertising • Call boards have full-color back-lit displays and provide FREE phone access to products and services • Targeted local, regional or national exposure for business, services, or products • Messages constantly seen 24 hours-a-day, 7 days-a-week

  9. Customer Profile - InTransit

  10. Don Farthing, President/CEO, 800-547-2053 ext 1615

  11. Economic Update: What is driving freight demand?

  12. Manufacturing Production Year-to-Year Percent Change Sources: Federal Reserve & ATA

  13. Manufacturing Inventories Inventory/Sales Ratio; Through November Manufacturing inventories remain very lean Source: Department of Commerce

  14. Non-Farm Payroll Employment Change from the previous year; Scale in Millions Sources: U.S. Department of Labor & ATA

  15. Trucking Demand: What are the trends?

  16. ATA’s Monthly Truck Tonnage Index 1993=100 ATA’s Monthly Truck Tonnage Index (1993 = 100) Tonnage is off its peak, but is poised to continue growing in 2005. Source: American Trucking Associations

  17. TransCore Freight Index

  18. Truckload Industry Loads1993=100; Through November 2004 Large Truckload Carriers (Over $30 Million) Small Truckload Carriers (Under $30 Million) Source: American Trucking Associations’ Trucking Activity Report

  19. U.S. Class 8 Truck Sales January 2005… 61% increase over Jan ’04…all time high as reported in TT Feb 21, 2005 Sources: Ward’s Communications & ATA

  20. Capacity: Additional limiting factors

  21. Shippers Believe TL Capacity Is Tight Too(September Survey) Source: Bear, Stearns & Co. Inc.

  22. Capacity Constraints • Lack of quality drivers are constraining ability to increase capacity • Thousands of failures in 2001, 2002 • HOS productivity loss • New Engine Purchase delays and performance

  23. Truckload Driver Turnover(Quarterly Annualized Rates ) Source: ATA’s Trucking Activity Report

  24. National On-Highway Average Diesel Fuel Price($/Gallon) $10 billion more spent on fuel in 2004 Average Price 1994 to Present ($1.30/gallon) $1.98 Sources: Department of Energy & ATA

  25. Higher Diesel Prices Lead To More Trucking Failures Sources: A.G. Edwards & ATA

  26. Insurance: Cost per Truck The liability insurance market is starting to level off, even fall in a few cases… …However, many carriers have & will continue to take on substantially more risk. Data based on information disclosed from publicly-held truckload carriers.

  27. What Can you Do to Get Capacity • Work with companies (i.e. Intransit) that have the ability to find small trucking company capacity • Understand market conditions and why capacity is tight; For example: Driver shortage, HOS, Fuel, etc. • Offer rates that are competitive and realistic (Rate Index) • Always look at ways to make your business freight friendly • Develop quicker freight payment solutions

  28. In Summary • Economy and Manufacturing growth High • Transportation Costs high due to • Driver Shortage / Pay Increases • Fuel, Insurance Costs • HOS • Demand • Look for resources that find new capacity • Intransit; TransCore

  29. Thank You800 547-5417

More Related