Dealing with Wild Cards that Can Impact Your Transportation Budget
Aug 28, 2019
If you want to build a great transportation budget in 2020, some things you need to consider are the “Wild Card Issues”. These are things we know are out there, but it’s difficult to gauge what impact they’ll have on transportation budgets.
One example is the IMO 2020 initiative–the low sulfur mandate facing ocean carriers. While most industry experts anticipate that it will impact diesel prices (because of the need to blend this fuel with bunker fuel) and thus impact your fuel surcharges, how much of an impact it will have is anybody’s guess.
We are also tracking issues such as the deadline to convert Automatic On-Board Recording Devices (AOBRD) to Electronic Logging Devices (ELD) or the FMCSA’s proposed changes to the Hours of Service (HOS) rules. How will the AOBRD/ELD issue affect capacity? When will the proposed HOS changes become effective? Exactly how will these changes impact the marketplace?
These wild card issues are important to consider, but as we have been reminding people all year, they are external issues that deal with things happening outside the walls of your company. If you want to be world class when it comes to managing your transportation costs, then emulate companies who manage their freight “from the inside out.” These companies have proven that focusing on internal factors will drive significant improvements and savings to their bottom line.
To give you a few ideas about how to get started down this path, we created an eBook about putting together a transportation spend management plan and encourage you to download it if you haven’t already.
Another tool you may want to take advantage of is our Rapid Assessment process where we evaluate your current state and help you find ways to optimize your transportation plans.
We hope you'll find these resources and tips helpful as you plan for the future, and encourage you to get in touch with us anytime by calling us at 630-833-0890 or by sending us email.