Carrier Business Meeting – Annual Survey

53^rd Annual Conference

Rosen Shingle Creek

Orlando, Florida

February 17 – 19, 2008

{Polling on questions is limited to one vote per carrier}

Click here do view the PDF.

In January’s issue of Heavy Duty Trucking, the author cites 10 main reasons drivers leave. Home- time and money are not the only issues. How would you rank the following 10 reasons why drivers leave your firm? Please score from 1 to 10 with 1 being the top reason.

# 1 Not enough money # 7 Not enough home time

# 9 Doesn’t like supervisor # 2 Not happy with the dispatch assignments

# 8 Was set up for failure # 3 Was not what the driver expected

# 5 No opportunities to advance # 6 Company does not communicate with drivers

# 4 Driver not appreciated #10 Freight inconsistencies

Have any of your customers approached your company about entering into a specialized fuel purchase program?

47% Said yes 53% Said no

With a tightening economy upon us, has your customer base begun to seek rate reductions?

78% Said yes 22% Said no

Recent reports show freight outlooks remain weak and with only three months over the last 17 months that actually faired better, what will your focus be?

62% Said maintain same fleet size 16% Said reduce fleet size 22% Said add fleet

Is your company finding it necessary to prospect now for new business?

97% Said yes 03% Said no

Do you believe that your customers realize the impact they have on driver retention?

33% Said yes 67% Said no

Results of the 2006 FSA carrier survey showed that 75% of the carrier’s customers increased their dependency on brokers to move freight. How would you answer this today?

43% Said increased use of brokers 57% Said decreased use of brokers

Efforts to increase size and weight of commercial vehicles are supported by those who view this as an effective way to combat driver shortage while others contend this would pose a higher safety risk. Those who argue against increased size and weight fear lack of compensation for extra freight hauled.

40% Said increase size and weights 60% Said do not increase size and weights

10. Does your company require loaded trailer doors to be locked in addition to using trailer seals?

33% Said yes 67% Said no

Most companies have three ways to grow: increasing revenue with existing customers, adding services to the company’s ‘menu’ or acquiring other business. Which (if any) has your company done over the last year? (Please check all the responses that apply to your company)

41% Said increased revenue 37% Said added services

18% Said acquired other business 04% Said none

Have shippers adjusted parameters for on-time service requirements given the increased road congestion and the fact that congestion itself occurs during longer portions of the day?

18% Said yes 82% Said no

How do you measure equipment detention? (Please check one response that would apply to your company)

07% Said 30 minutes to an hour 43% Said over 1 hour but under 2 hours 50% Said 2 hours

What is the average lead time for load tenders overall within your company? (Please check one response that would apply to your company)

0% Said same day 88% Said 24 hours 12% Said 48 hours +

What is the ideal period in which customers should offer loads to ensure the likelihood of capacity? (Please check one response that would apply to your company)

0% Said same day 40% Said 24 hours 60% Said 48 hours +

Do you believe CEO’s and other top manufacturing managers have a firm grasp of the logistics issues that traffic managers encounter today vs. the on-going demands from ‘Wall Street’?

(Please check one response that would apply to your company)

07% Said yes 53% Said somewhat 40% Said no

With regard to the shipper’s response to the new hours of service, have you seen an increase of drop lot capabilities?

46% Said yes 54% Said no

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?

29% Said yes 71% Said no

Do you currently use the railroads for long-haul moves?

38% Said yes 62% Said no

If not, do you intend to offer Intermodal service in the next 12 months?

12% Said yes 88% Said no

Have any of your long-term customers recently shifted some or all of their transportation

management to a third-party logistics provider (3PL)?

70% Said yes 30% Said no

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

25% Said gain 75% Said lose

What is your expectation with regard to truck freight rate spot pricing through year end?

Pick one of the following:

45% Said pricing will hold at current levels

05% Said pricing will improve

50% Said pricing will deteriorate further

In the third quarter of 2007 (July-Sept), versus the third quarter of 2006, business conditions were...

15% Said better than last year 28% Said the same as last year 57% Said worse than last year

At present, the age of your fleet is…

17% Said older than average 61% Said same as average 22% Said newer than average

Does the carrier community (including 3PL’s) consider the effectiveness of collaborative

shipping initiatives (where multiple shippers overlay their respective networks in search of synergies) to improve transportation efficiency (reduce empty miles, etc.)?

44% Said yes 56% Said no

Have we reached “peak oil”?

08% Said yes 92% Said no

For you temp–controlled carriers, are you seeing increased offerings of reefer fuel surcharge?

09% Said yes 81% Said no

If yes, would you be likely to move some of your existing temp-controlled business to those shippers offering reefer fuel surcharge?

95% Said yes 05% Said no

In an industry where costs are somewhat “fixed” and out of the carriers hands (fuel, drivers, insurance, tags/titles, tolls) vs. commodity pricing, are you finding shippers are asking for rate cuts that seem to be “unfair”?

77% Said yes 23% Said no

Carriers are increasingly asked to participate in “Transportation Procurement” activities (i.e. bids). What can shippers do to structure these events to be more “carrier friendly” both in terms of structure and implementation?

Some of the responses obtained were:

ü Ask for carrier input

ü Structure more often

ü Protect the performing incumbents

ü Tell us how we scored (outcome)

ü Limit ‘round two’s’

ü Multiple year (5) terms

ü Less use of bids, more dialogue about your (shipper) needs

ü Simplify the bidding process

Comments about the survey?

When asked if the business meeting should be conducted as a supplier group vs. a carrier meeting, as in the past, 44% voted to run separately against 56% who would like to meet together as service suppliers.

Comments written include:

ü More questions about 3PL activity

ü Could have covered additional fuel related issues

ü Additional questions on Broker vs. Asset based

ü Questions were common and non specific

ü Not enough coverage of temperature controlled freight / transit

ü Thank you for conducting survey

ü Separate 3PL and Rail from truck meeting

ü Some survey questions were misleading or to general.

ü Make surveys applicable to all

ü Good survey balance

ü Microphone needed for audience comments / room too small / not enough surveys

ü “As a hole sponsor for the golf outing … it would be nice to be paired with at least one shipper!”

Thank you for your participation!