Transportation pricing

Truckers tell us that Homeland Security is paying at least $4 per mile for loads into Florida.  The problem for carriers is that these loads are “really last minute”.  If you win the auction, there is no certainty that the load will actually go.  
 
With hurricanes and all the things going on, it’s easy to forget that electronic logs will be mandatory in 3 months.  “You’ll see smaller carriers leave the business,” said Rod Nofziger, Chief Operating Officer for the Missouri-based Owner-Operator Independent Drivers Association, which has 158,000 members. (Wall Street Journal)  And there is no doubt that e-logs reduce the miles per unit per week.
 
Add to this more fracking sand coming out of Texas – the first sand mine to open will ship 150,000 truckloads and replace sand coming from Wisconsin by train.
 
If all this happens, there is no doubt spot rates will increase.
 
Here is yet another way to fight back – using inbound order optimization – see how it works in this 2 minute animation where 1 in 10 trucks are eliminated –http://www.warehouseoptimization.com/reducing-transportation-costs-inbound-purchase-orders