Big Truck TV
With the "Fiscal Cliff" averted, we begin 2013 with a sigh of relief. While the outlook for 2013 is positive, we might see a blip in Q4 earnings due to Hurricane Sandy & the fiscal conservatism many businesses adhered to in anticipation of a poor outcome from Washington. Trucking will benefit from a stronger economy but still faces a major hurdle it has struggled with & has yet to resolve - the driver shortage. Gains in the labour market will only exasperate this situation. The market will likely force a solution as shippers seek alternatives like intermodal. This week, we interview Page Siplon - Executive Director of the Georgia Center of Innovation for Logistics on the role that logistics & supply chain play in the economy & how the critical driver shortage will impact trucking & shippers.
Since MDI finished the year with positive growth, well above seasonality, what can we expect to see in January?
January is usually seen to have somewhat flat trends in MDI and trucking volumes. This is primarily because retailers are working through accumulated inventories. Things typically start to ramp up mid-February, but since the recent “fiscal cliff” was averted, we could possibly see a stronger than usual first quarter for trucking.
Can we breath a sigh of relief now that the fiscal cliff has been averted?
Although there is a little more clarity given the economic uncertainty that loomed prior to the ‘fiscal deal’, there is still concern out there as at least three more “fiscal cliffs” on the horizon. With the first one quickly approaching come February or beginning of March, Congress must make a decision about the $16.4 trillion debt ceiling or default on the nations loan.
How much of a role does the trucking industry play in the Logistics and Supply Chain system?
The trucking industry is a critical part of the Logistics and Supply Chain system. Trucking companies are responsible for significant freight movement. They move approximately 70% of all the tonnage throughout the US. Further to that, 80% of the communities in the US rely exclusively on trucking. People don’t realize it but it takes about 9 million people to move that freight by trucks every year. This equates to about 1 in 13 people are employed directly by the trucking industry.
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