April 8, 2020 Round Table Discussion Summary - Coronavirus
Aborn & Co. • April 8, 2020
A market update and summary of the round table discussion from April 8, 2020
What are we seeing with capacity?
For the first time since the start of the pandemic, we are hearing that LTL volumes are starting to drop. Some LTL carriers are warning that they expect volumes to drop by as much as 30% in the coming months. The LTL industry serves a lot of US auto companies and as the auto industry has shut down manufacturing the LTL networks have been affected. LTL carriers are expecting this problem to continue as more production continues to shut down.
What is the base of FSC? Will there be an elimination of this charge?
LTL fuel surcharges are typically calculated based on the cost of diesel published by the Department of Energy. Some fuel surcharge schedules (based on the parameters of your rates and contracts) are based on regional diesel costs. We recommend negotiating fuel surcharge agreements based on the national diesel average.
We do not expect carriers to eliminate fuel charges in response to COVID-19. Fuel acts as a revenue stream for a lot of freight carriers. If you are negotiating with carriers, it is important to negotiate the fuel schedule that slides up/down as the cost of diesel goes up or down.
Outlook from an LTL carrier
- Just like other companies, LTL carriers are experiencing a lot of uncertainty in the market. The high levels of uncertainty cause problems within their network as it makes planning and forecasting very difficult. GDP projections are dropping at an accelerating rate.
- Layoffs: Carriers are starting to lay off staff. They are laying off office staff and operational staff in facilities and on the road.
- Suspension of services: Carriers are removing guarantee programs and other programs as these programs have gotten exceptionally hard to service
- Longer delays, longer deliveries: Carriers are having a really hard time scheduling appointments and getting information about deliveries. As stated above, some of the carrier’s staff has been laid off and the problems are compounded as shippers have also laid off staff.
- We are expecting to see some LTL and trucking companies go out of business because of COVID-19.
- Continue to monitor carrier websites daily. Things are changing almost hourly within the carrier’s operation and they are all publishing this updated information on their website.
- Carriers are running on skeleton crews.
- LTL carriers are worried long-term about the recovery. In the past, LTL carriers have been slower to recover after disruptions than other industries.
- Understanding carrier website updates and companywide updates are important, but a lot of the value and information is at the terminal or facility level. Try as hard as possible through your support structure and relationships to understand what is happening at a local level
How are you managing bids in this environment?
We are seeing a lot of carriers ask for more time to submit rates for annual negotiations. The feedback from carriers is that this time is so uncertain that they aren’t comfortable submitting rates.
Alternatively, one carrier on the call today stated that now is actually a great time to approach carriers with freight to negotiate. The carriers are looking for great partners during this crisis as their internal operations have been severely affected. One of the most important things a shipper can do when negotiating pricing is to gain a solid understanding of their internal data and movement patterns. Carriers are looking for partners with good data that will commit to volumes in this tough time as the data allows the carrier to plan around the volume.
What tools are you using to keep up with the changing environment?
We are incrementally using tools that allow us to work with shippers, carriers, and facilities in a digital automated no-touch environment. Due to the huge number of layoffs across industries and the fear of interpersonal contact these tools are especially effective and important today’s environment.
In the long-term, we are investing in strategies that will make us more efficient and ready for similar events in the future.
What are businesses doing right now to prepare to launch when the crisis is over?
At Aborn, we are looking at a bunch of different ways to partner with carriers to drive better pricing, service, and visibility for our clients. Now is a great time to benchmark current processes.
What processes are in place currently that are no longer suitable for the COVID-19 world?
What major challenges are packaged foods importers facing at ports?
We are seeing a reduced workforce at the ports. It is taking longer for the vessels that arrive to get unloaded and transported. Customs have repeatedly stated that they are at full staff, but anecdotally we are seeing and hearing about delays.
We are seeing minor delays in getting goods cleared.
How are companies addressing the COVID-19 challenge?
We are hearing a lot of companies we talk to invest in data and automated processes for exchanging information. Some companies have broken products out into A, B, and C grade items based on their volume and profitability to the business.
Once the items were categorized, companies reached out to their 3PL suppliers and actually moved significant amounts of their high-value products to the most secure facilities within their food-grade facilities.
Interested in joining the next round table?
Innovative managed transportation provider continues to invest in hiring and developing the best talent within the logistics space QUINCY, Mass — FreightPlus, a data-driven managed transportation solutions provider, announced Brendan Lawler has joined as Senior Manager of Strategic Planning and Customer Service. Lawler brings in over seven years of experience leading diverse, cross-functional teams in challenging, chaotic, and ambiguous environments. In his new role, Lawler will own all aspects of planning, optimizing, appointing, tracking and servicing customers’ freight. He looks forward to standardizing the planning and customer service functions within the department and incrementally improving the throughput of the team through process improvement and technology integration. “I am energized by the opportunity to help continue FreightPlus’s growth as a data-driven transportation management solutions provider,” says Lawler. “I’m eager to use my experience in leading teams toward operational excellence to enhance the customized service for our clients. FreightPlus's mission to ‘simplify complex logistics together’ embodies the people-driven culture that I value so deeply. I look forward to joining a company that is team-focused and has a proven track record of transforming ideas into innovative solutions that create sustainable impact.” Lawler previously served as a Captain in the Marine Corps and as Senior Operations Manager within Amazon Transportation Services, where he focused on driving operational excellence and utilizing new technology to drive process improvements. In his tenure, he was responsible for developing and implementing new network-level process improvements for both under-the-roof (UTR) and over-the-road (OTR) operations, as well as spearheading the effort of optimizing the synchronization of warehouse and transportation operations. With revenue and employee count quadrupling over the past five years, FreightPlus was listed no. 184 on the Inc. 5000 list of fastest-growing private companies in America in 2022. Chief Operating Officer Ben Graeff comments, “I am so excited to welcome Brendan to FreightPlus. Brendan brings a deep background in operational excellence from his time in the Marine Corps and Amazon Transportation. He is a quiet leader that leads by example, lives in the day-to-day details, and is the exact right person to help us scale our operation and customer service teams through our continued growth.” About FreightPlus FreightPlus is an industry provider of data-driven transportation management, offering businesses customized and fully tailored managed transportation solutions in a boutique environment where clients get the individual attention they deserve. FreightPlus combines first class customer service with innovative technology and industry best practices to help mid-size and growing companies work efficiently in the $800B domestic transportation market. Visit FreightPlus.io for more information. ### Media Contact: Courtney Conyers Marketing & Communications cconyers@freightplus.io
For the 2nd Time, FreightPlus Appears on the Inc. 5000, Ranking No. 184 on the List of Fastest-growing Privately Held Companies in America FreightPlus recognizes a three-year revenue growth rate of 2,846% NEW YORK, August 16, 2022 – Today, Inc. revealed that FreightPlus is No. 184 on its annual Inc. 5000 list, the most prestigious ranking of the fastest-growing private companies in America. The list represents a one-of-a-kind look at the most successful companies within the economy’s most dynamic segment—its independent businesses. Facebook, Chobani, Under Armour, Microsoft, Patagonia, and many other well-known names gained their first national exposure as honorees on the Inc. 5000. “We are honored to be featured on the annual Inc. 5000 list for the second year in a row,” said Stephen Aborn, FreightPlus Chief Executive Officer. “This award and our ranking reflect the continuous dedication from our team to providing our customers with the people, technology and processes to build best-in-class logistics programs. We are thrilled to be recognized as we strive to bring customer-centric and innovative solutions to the world of logistics.” The companies on the 2022 Inc. 5000 have not only been successful, but have also demonstrated resilience amid supply chain woes, labor shortages, and the ongoing impact of Covid-19. Among the top 500, the average median three-year revenue growth rate soared to 2,144 percent. Together, those companies added more than 68,394 jobs over the past three years. Complete results of the Inc. 5000, including company profiles and an interactive database that can be sorted by industry, region, and other criteria, can be found at www.inc.com/inc5000 . The top 500 companies are featured in the September issue of Inc. magazine, which will be available on August 23. “The accomplishment of building one of the fastest-growing companies in the U.S., in light of recent economic roadblocks, cannot be overstated,” says Scott Omelianuk, editor-in-chief of Inc. “Inc. is thrilled to honor the companies that have established themselves through innovation, hard work, and rising to the challenges of today.” About FreightPlus FreightPlus is an industry provider of data-driven transportation management offering businesses customized and fully tailored managed transportation solutions in a boutique environment where clients get the individual attention they deserve. FreightPlus combines first class customer service with innovative technology and industry practices to help mid-size and growing companies work efficiently in the $800B domestic transportation market. Visit https://www.freightplus.io/ for more information. Media Contact: Courtney Conyers cconyers@freightplus.io
Innovative managed transportation provider brings on LTL industry leader to continue to support rapid growth QUINCY, Mass — FreightPlus, a data-driven managed transportation solutions provider, has announced the expansion of their company with the hiring of Curtis Garrett, joining as Senior Vice President of LTL. Garrett will focus on improving carrier relationships and interactions through utilizing technology and strategic processes. With revenue and employee count quadrupling over the past five years, FreightPlus was named the second-fastest growing privately held company in Massachusetts by the Boston Business Journal. FreightPlus was also listed as the 783 rd fastest-growing company on the 2021 Inc 5000 list. CEO Stephen Aborn commented, “I am thrilled to have the opportunity to work with Curtis. Expanding our team with his experience is a great step in the right direction for FreightPlus as we continue to look for the most innovative and ambitious thinkers in the logistics space.” Garrett brings fifteen years of LTL experience prior to joining FreightPlus, including eight with ODFL in operations, driving, pricing, yield, and W&I. Since departing from ODFL, he has spent six years on the 3PL, software and consulting side of the industry, recently serving as Vice President of Pricing and then Chief Strategy Officer at Reconex. Garrett is fascinated with technology and is truly a student of the industry. Having overseen hundreds of millions of dollars in revenue on the business profitability side, as well as pricing and carrier relationships and procurement, Garrett is more determined than ever to break down silos and get everyone on the same playing field. “I am beyond excited to join FreightPlus”, said Garrett on his new role. He continued, “from what I have witnessed, this company has all the right parts and pieces – customer obsession, innovation, and grit – to do big things in the freight industry and I could not be more excited to be a part of it.” About FreightPlus FreightPlus is an industry provider of data-driven transportation management offering businesses customized and fully tailored managed transportation solutions in a boutique environment where clients get the individual attention they deserve. FreightPlus combines first-class customer service with innovative technology and industry practices to help mid-size and growing companies work efficiently in the $800B domestic transportation market. Visit https://www.freightplus.io/ for more information. Media Contact: Courtney Conyers cconyers@freightplus.io
FreightPlus has been named to Boston Business Journal's exclusive 2022 Fast 50 list for the first time.
Innovative managed transportation provider continues to invest in executive team to support the company’s rapid growth. QUINCY, Mass — FreightPlus, a data-driven managed transportation solutions provider, announced Ben Graeff has joined as Chief Operating Officer, the first in company history. Graeff will be responsible for the company’s operational, managerial, and product strategy, as well as driving day to day and quarterly results and innovation in FreightPlus’ next stage of scale and growth. With revenue and employee count quadrupling over the past five years, FreightPlus was named to The Inc. 5000 list of fastest-growing private companies in America in 2021. CEO Stephen Aborn commented, “I am thrilled to welcome Ben to FreightPlus. His natural ability to lead and his experience scaling large businesses at the intersection of technology and operations will be invaluable to our growth story. Every person or partner that works with Ben will be better for it.” Graeff brings over 10 years of experience building technology and businesses at Amazon. Prior to joining FreightPlus, he served as Sr. Manager, Product Management and Data Analytics within Amazon Transportation Services. During his tenure, Graeff was responsible for P&L ownership in Amazon’s consumer retail division, developing new software and customer experiences for Amazon Prime, as well as product development and business results in operations and logistics across the globe. “I am excited to join a company whose mission embodies solving complex problems in partnership with its customers,” said Graeff on his new role. He continued, “Like all great organizations , FreightPlus is powered by its people. I’m eager to join this growing team and blend my experience in building and developing organizations with delivering fast-paced results through people, process and technology. FreightPlus’ commitment to driving long-term partnerships, cost savings and strong service for our customers aligns closely to my core values. I look forward to continuing to build the products, processes, programs and technologies to drive FreightPlus’ future growth as a data-driven transportation management service.” About FreightPlus About FreightPlus FreightPlus is an industry provider of data-driven transportation management offering businesses customized and fully tailored managed transportation solutions in a boutique environment where clients get the individual attention they deserve. FreightPlus combines first-class customer service with innovative technology and industry practices to help mid-size and growing companies work efficiently in the $800B domestic transportation market. Visit https://www.freightplus.io/ for more information. Media Contact: Courtney Conyers cconyers@freightplus.io
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