Patrick J. Allen, CSCP on LinkedIn: Canadian Rail craziness continues, parcel costs just keep rising (2024)

As I aggregate these updates each week, I can't help but notice the constant "postive" or "negative" momentum that the publications ascribe to shifts in the transportation marketplace. These rate changes inherently have the opposite impact on shippers and the carriers/brokers that are impacted by them, leading to a sense of urgency for both carriers and shippers. However, focusing too much on these short-term movements can lead to reactive decision-making, strained relationships and significant demand imbalances in the market. In reality, the transportation market is governed by long-term supply and demand cycles that naturally balance out over time. When demand spikes, rates rise, prompting carriers to increase capacity. Conversely, when demand drops, rates fall, and capacity contracts. This cyclical nature ensures that the market eventually stabilizes, leveling the playing field for all stakeholders.The key to navigating this volatility lies in building strong, trust-based partnerships between carriers and shippers. By prioritizing long-term strategies over short-term gains, both parties can achieve greater stability and resilience. Embracing flexibility and focusing on service quality and reliability will lead to more sustainable success, regardless of the inevitable fluctuations in transportation rates. In the end, a strategic, long-term approach will create a more harmonious and effective transportation industry.These strong, trust-based, long-term, flexible, quality, reliable, sustainable, strategic, harmonious, effective relationships between shippers and carriers/brokers is what we work to establish here at TI.

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We officially know what the big two parcel carriers will be charging during peak season. Do you know how it will impact you and what you may be able to do to control costs?

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While I expect to share my typical weekly updates with my network tomorrow, I wanted to share TI's Q3 Transportation Market Outlook.Covered within: - How macroeconomic indicators like GDP, consumer spending, industrial production and imports are shaping #freightdemand. - The state of #freightcapacity and its impact on the #freightmarket. - Current trends and forecasts for #Truckload Spot and Contract Rates. - Expectations for other transportation modes including #Drayage, #LTL and #Parcel. - Strategies to prepare for the upcoming #peakseason and beyond.https://lnkd.in/ehF_s6Gf

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Shippers are experiencing greater power in negotiations with FDX and UPS? You don't say! Oh wait...I've been banging this drum for six months. You want yours? Give me a call. Our Parcel Optimization program is averaging a 24% save for our clients.

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Anyone in my MN network have interest in a role with a solid team with a solid supply chain?

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Far and away, the most important updates this week have to do with UPS announcing its peak surcharges and increasing fuel - both effective on Monday.

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