How the US trucking industry got here

It started in the early 1980s when the pendulum of American politics swung away from government involvement in the economy towards deregulation (de Growe). In trucking, this shift was marked by the 1980s Motor Carrier Act and accompanied by the diminishing influence of labor unions that had previously backed incumbent carriers to protect their status (Viscelli). Under pressure from the consumer and shipper lobby, regulators did away with anti-competitive trucking rate coordination policies and licensing requirements that had created barriers to entry (Moore).

How should trucking companies and transportation managers think about balancing contract and spot rates

In this article, I argue that COVID19 has highlighted an important shortcomings in how carriers and customers have been approaching their relationships.

As non-essential companies stopped manufacturing during shelter-in-place, some carriers saw contract demand effectively evaporate, exposing both a gaping hole in their business and lack of ability to operate in the spot market. Traditional contracts in freight serve customers’ and carriers’ need for reliability in their business relationships. Many carriers have however neglected the concentration risk and dependency contract business can create.

On the shipper side, academics, consultants and technology businesses have pointed out the disadvantage of fixed rate…

How Trucking Businesses can Survive by Developing Foresight!

Image by Scott Mednick

Freight markets are canaries in a coal mine. First signals of an economic upswing or downturn often manifest themselves first here. Economists, hedge funds and businesses therefore often track freight markets as leading indicators.

The freight market’s sensitivity is its virtue as much as it is its curse. In the wake of the COVID-19 outbreak, a combination of panic purchases, medical relief shipments, and the typical seasonal upswing has caused capacity to tighten and rate to rise. Motor carriers are excited to finally find relief from a cyclical downswing. …

Over the past fourteen months, my co-founder Paul and I have made countless trips from the Silicon Valley to the Central Valley, taking research, data and technology we had developed in our offices to our customers, small and medium sized trucking and logistics companies.

We left behind Palo Alto where a 4-bedroom house would sell between $2 and $15 million and drove just 90 minutes to Stockton where the same property would be available for somewhere between $200,000 and $1.5 million. …

Call for a systems-level approach to food waste

A much published statistic is that somewhere between 30% and 40% of our food is lost in the food supply chain. In the US, this corresponds to about 20 pounds per person per month, up to $2,275 per household per year or $165bn per annum [1, 2]. The food waste topic has garnered the interest of a fast growing number of start-ups such as Imperfect, Apeel or Full Harvest. Much of the popular literature has focused on exhorting consumers to curb their wasteful behavior.

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In this article, I propose an…

Hans Galland

Founder & CEO @Haulistix - reinventing the trucking company — digital. smart. driver-centric.

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