Carrier Business Meeting – Annual Survey – Results

49th Annual Conference
Wyndham Palace Resort & Spa
Lake Buena Vista , Florida
February 22 – 24, 2004
{Polling on questions is limited to one vote per carrier}

(Click here to download the Microsoft Word Document.)

1. Carriers are expected to continue to meet or exceed service expectations required by customers. What type of processes or systems is your company using to manage drivers with respect to the new Hours of Service regulations? Responses were:

Daily log audits
New technology / software
Increased education
Improve communication with drivers

2. Shippers and Receivers have been reporting a wide reaction from the carriers regarding the change in the Hours of Service. They have reported several carrier reactions. Which reaction(s) did your company favor as a response to the increased costs?
(Please check all the responses that apply to your company)

#1___ Imposed a mandatory increase in the accessorial charges
#2___ Reduced multi-stop deliveries
#3___ Eliminated service and / or raised rates to historically bad receivers
#4___ Took blanket rate increases
#5___ Did nothing and took a wait and see approach
___ Other: specific increases, waited for customer to grant increases, enforced accessorial charges, continued to analyze client services, etc …

3. There have been numerous changes in the transportation sector over the last two years. The trucking industry is experiencing capacity declines with increasing freight demand, insurance premium increases, driver turnover, federally mandated engine emissions laws, fuel pricing volatility and the H.O.S changes impacting driver productivity. What is your company doing to mitigate these impacts?
(Please check all the responses that apply to your company)

# 1___ Pass costs on to customers
#2___ Increasing use of drop and hook freight
#3___ Reducing empty (deadhead) miles
#4___ Improve accuracy of hitting appointment windows
#5___ Promotion of continuous move to drive revenue for all miles
#6___ Encouragement of collaboration amongst multiple shippers to link freight net-works together
___ Other: limit head count, aggressive purchasing of parts, fuel, time, labor, overhead run equipment longer, more education etc …

4. States are finding easier access to future tolling proposals, tax increases and indexing taxes. If your company had a choice, which method would your company accept?
(Please check one response that would apply to your company)

20% said new tolls
44% said tax increases ( i.e. fuel tax increase)
36% said indexing Taxes (i.e. add-on tax)

5. Which of the following electronic enhancements is your company currently utilizing or testing?
(Please check all the responses that apply to your company)

#1___ said in-cab communications satellite technology
#2___ said electronic pass tags for toll booths
#3___ said trailer tracking Service
#4___ said electronic pass tags for weight stations
#5___ said in-cab communications cell phone
#6___ said electronic logs

6. Fuel volatility has been a factor of the trucking economy. Does your company now have formal agreements in place to allow for price fluctuations?

83% said yes
17% said no

7. The economists are forecasting growth of 4.5% in 2004 with no shortage of freight. Is your company finding it more strenuous to attract and retain drivers?

85% said yes
15% said no

8. Is your company planning any major equipment purchases / leases (tractors and/or trailers) for 2004%

79% said yes
21% said no

For those companies planning tractor purchases or tractor leases, are you doing so to forestall the extra costs of the 2007 engines due to the upcoming EPA low sulphur standards?

46% said yes
54% said no

9. Does your customer require loaded trailer doors to be locked in addition to using trailer seals?

63% said yes
37% said no

10. Does your company utilize trailer tracking devices with features such as cargo sensors or continuous visibility of trailer location?

18% said yes
82% said no

11. Have you experienced an increase in cargo theft this past year?

22% said yes
78% said no
If yes, what state(s)? States reported:
CA _______
FL ________
IL ________
IN ________
NJ ________
PA _______

12. Have you participated in any significant security improvements with your customers this past year?

68% said yes
32% said no

If you answered yes, what improvements were initiated?

Improved seal policy
Improved drop yard security
Promoted shipper load and count
Created security standard operation procedures

13. Enforcement agencies around the country continue to keep an eye on trucking in an effort to prevent future terrorist threats. Has your company taken any proactive measures to safeguard your fleet?

57% said yes
43% said no

If answered “Yes”, what proactive measurements have you taken?

Increased driver background checks
Promoted the use of identification badges
24-hour unit tracking
Greater surveillance of drop yards
Collaborative communication with federal and local authorities

14. Insurance carriers have been extremely adverse to any business that is risk-prone. This year, fleets should expect to pay more for their insurance coverage and may find coverage itself, harder to obtain. What percent of increase has your company incurred or anticipates incurring this year?

70% said 0% - 25%
22% said 26% - 50%
07% said 51% - 75%
01% said over 75%

15. Logistics Magazine reported that when it comes to collaboration, many companies (shippers) talk a good game, but few put it to effective practice. In your opinion, has your customer base improved its collaborative efforts over the last three years?

54% said yes
46% said no

16. Have any of your long-term customers recently shifted some or all of their transportation Management to a third-party logistics provider (3PL)?

60% said yes
40% said no

If so, did the shift cause your firm to gain or lose business?

29% said gain
71% said lose

17. The new Hours of Service rules may have identified the true cost of driver dwell time was inefficient. The initial industry reaction is to force needed changes with cost penalties such as higher detention charges for loading and unloading delays while other carriers have found that general rate increases were the norm.

In your opinion, were your customers knowledgeable about the HOS rule changes?

70% said yes
30% said no

Did your top customers present a revised accessorial page reflecting higher changes and less free time?

70% said yes
30% said no

Where your top customers understanding of your need for rate increase considerations?

79% said yes
21% said no

18. Many carriers have experienced new ways of receiving freight through various formats that include EDI, internet freight portals, fax, phone and e-mail. With different systems, has the lack of a standardized format caused more data errors and delays for timely transitions?

79% said yes
21% said no

Without uniform systems, list some of the costs your company has incurred.  

Additional Staffing
Upgraded computer equipment
Computer Training
Multiple reporting of data
Required to pay a subscription fee
Customer computer programming

Comments about the survey?

Good questions… Different topics well done
For me, four years I have participated in FSA, good job surveying the hot topics

 

Thanks for your participation!
Survey Results will be distributed to all FSA attendees.
  • If you would like an e-mail copy of this survey, please contact Chris Simmons at