Tuesday, May 5, 2009

NASSTRAC Notes: Multi-modal executives say shipper-carrier collaboration is the best long-term strategy

ORLANDO, Fla.—A panel of freight transportation executives in various modes offered up ways in which shippers and carriers can best collaborate during these uncertain economic times during a panel discussion at last week’s NASSTRAC (National Shippers Strategic Council) annual conference.

The panel, entitled “Multimodal Carrier Executives: Viewpoints from all angles,” featured Derek Leathers, chief operating officer of Werner Enterprises Inc., Jim Hertwig, president of CSX Intermodal, and Brian Taylor, president of Horizon Logistics.

With transportation costs front and center for shippers and carriers possibly more now than at any other time, many transportation service providers are experiencing hefty cost fluctuations, coupled with tight credit and cash flow, which forces shippers to ensure they have stable supply chains replete with reliable transportation services. Werner’s Leathers explained that this premise has resulted in shippers getting pressure from their senior management to drive costs down, while at the same time losing sight of meaningful economic sustainability.

“[Shippers and carriers] are making decisions without a long term eye in some cases,” he said. “You want a supply chain with reliable economic sustainability built in and to do that you have to take a look at partnering with your underlying carriers, whether that is rail, ocean, or truck.  You have to be engaged in dialogue with those providers about their overall health.”


Read the rest of the article here at logisticsmgmnt.com.

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