Food Shippers of America - Spring/Summer 2018 - 57

I N D U S T R Y
F O R E C A S T

A Challenging Year Ahead
by Kyosuke Noguchi

A

strong economy, regulatory mandates, and
severe weather are setting the stage for
what's bound to be a challenging year for the
transportation industry. These conditions

are helping to compound a truck capacity shortage that will
continue to drive up rates and expenditures for the foreseeable
future. The economy grew by 2.3 percent in 2017, outpacing the
1.5 percent growth in 2016, although it slowed down at the end
of the year. While the performance amounts to less than the 4
percent annual growth that President Trump promised, it was
healthy enough to keep consumers spending.

The first quarter of 2018 has also seen
a slight decline in consumption and
investment, but the unemployment rate
remained steady at 4.1 percent. The
labor market added more than 313,000
new jobs in February - the strongest
gain since July 2016. While that's
good news for job seekers, it's not
good for the trucking industry, which
continues to have difficulty attracting
and retaining good drivers. Drivers
are leaving the road for better-paying
opportunities. There's an estimated
shortage of more than 48,000 drivers
this year, and the situation is destined
to get worse.
ELD Compliance Challenges
The driver shortage will most likely
be exacerbated by the Federal Motor
Carrier Administration's (FMSCA)
electronic logging device (ELD)

mandate, which went into effect on
December 18. Meant to deter the
problem of false logs and improve
highway safety, the mandate will
reduce daily driving time. The
rule is expected to reduce driver
productivity anywhere from 3 to 10
percent because drivers will need to
stay within the hour-of-service (HOS)
limits. A run that might have taken
a day may now take two days, which
will translate into additional costs and
delays for shippers.
Analysts say the mandate could
result in a 7 percent loss of capacity
in the for-hire carrier sector, and if
small fleets and owner-operators
find compliance too costly to stay
in business, the result could be a
3.7 percent of capacity loss in the
industry overall.

The ELD mandate could be a boon for
intermodal, which set traffic records
in 2017 due to solid economic growth,
rising fuel costs and tightening capacity.
Compliance may result in a switch from
highway to intermodal. With fewer
trucks available, the financial incentive
to use railroads will increase if cargo and
transit times allow for this conversion.
The Perfect Storms
Last year's trio of hurricanes, Harvey,
Irma and Maria, devastated the Gulf
and Atlantic coasts and created a strong
surge in truck freight. The industry was
still recovering when this year's massive
winter snowstorms rolled in at full
force, further tightening capacity. Early
January brought the first of a number of
nor'easters to the East Coast, which led
to record-breaking freezing temperatures
throughout the country and snow
reaching as far as northern Florida.
While these storms shut down roadways
and caused major delays, it was the
cold temperatures that wreaked havoc
throughout the supply chain for shippers
who had to deal with cargo becoming
frozen, costing hundreds of thousands
of dollars in product loss. While it's
impossible to predict inclement weather,
shippers will need to plan for these types
of disruptions. Between global warming,
a shrinking driver pool and regulatory
issues, trucking dynamics will continue to
shift and shippers will have to figure out
ways to remain competitive on the steep
hill they're climbing. ■
Kyosuke Noguchi, SVP, Transportation

Group, Yusen Logistics (Americas) Inc.,
Transportation Division, Jacksonville, FL
32224.

FOOD SHIPPERS OF AMERICA | www.foodshippersofamerica.org |

57


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Food Shippers of America - Spring/Summer 2018

Table of Contents for the Digital Edition of Food Shippers of America - Spring/Summer 2018

President’s Letter
Charged Up! Electric Trucks Poised to Gain Foothold In Trucking Industry
The Trucking Industry’s Top 10
Sana Raheem: Taking Risks for Growth
Developing an Unbeatable Inbound Freight Management Strategy
FSA Annual Conference
Evolution of Logistics: Developing Our Leaders of Tomorrow
Scholarship Winner
Food Shippers of America 2019 John J. Murphy Scholarship
Retail Trends
Rail Update
Industry Forecast
Millennials and GenZ: The Key to Future-Proofing Your Supply Chain Workforce
Blockchain: The Technology Soon to Take Over the Supply Chain
Improve Your Leadership IQ
Five Secrets to Find and Keep Top-Notch Talent Without Breaking the Bank
The Risky Six: Six Keys to Shed Fear and Take Smart Professional Risks
Customer Service and Safety are Priorities at Rapidly Growing Lazer Spot
FSA Members
Index of Advertisers
Food Shippers of America - Spring/Summer 2018 - Intro
Food Shippers of America - Spring/Summer 2018 - cover1
Food Shippers of America - Spring/Summer 2018 - cover2
Food Shippers of America - Spring/Summer 2018 - 3
Food Shippers of America - Spring/Summer 2018 - 4
Food Shippers of America - Spring/Summer 2018 - 5
Food Shippers of America - Spring/Summer 2018 - 6
Food Shippers of America - Spring/Summer 2018 - 7
Food Shippers of America - Spring/Summer 2018 - 8
Food Shippers of America - Spring/Summer 2018 - 9
Food Shippers of America - Spring/Summer 2018 - President’s Letter
Food Shippers of America - Spring/Summer 2018 - 11
Food Shippers of America - Spring/Summer 2018 - 12
Food Shippers of America - Spring/Summer 2018 - 13
Food Shippers of America - Spring/Summer 2018 - Charged Up! Electric Trucks Poised to Gain Foothold In Trucking Industry
Food Shippers of America - Spring/Summer 2018 - 15
Food Shippers of America - Spring/Summer 2018 - 16
Food Shippers of America - Spring/Summer 2018 - 17
Food Shippers of America - Spring/Summer 2018 - 18
Food Shippers of America - Spring/Summer 2018 - 19
Food Shippers of America - Spring/Summer 2018 - The Trucking Industry’s Top 10
Food Shippers of America - Spring/Summer 2018 - 21
Food Shippers of America - Spring/Summer 2018 - 22
Food Shippers of America - Spring/Summer 2018 - 23
Food Shippers of America - Spring/Summer 2018 - Sana Raheem: Taking Risks for Growth
Food Shippers of America - Spring/Summer 2018 - 25
Food Shippers of America - Spring/Summer 2018 - 26
Food Shippers of America - Spring/Summer 2018 - 27
Food Shippers of America - Spring/Summer 2018 - Developing an Unbeatable Inbound Freight Management Strategy
Food Shippers of America - Spring/Summer 2018 - 29
Food Shippers of America - Spring/Summer 2018 - 30
Food Shippers of America - Spring/Summer 2018 - 31
Food Shippers of America - Spring/Summer 2018 - 32
Food Shippers of America - Spring/Summer 2018 - 33
Food Shippers of America - Spring/Summer 2018 - 34
Food Shippers of America - Spring/Summer 2018 - 35
Food Shippers of America - Spring/Summer 2018 - Evolution of Logistics: Developing Our Leaders of Tomorrow
Food Shippers of America - Spring/Summer 2018 - 37
Food Shippers of America - Spring/Summer 2018 - 38
Food Shippers of America - Spring/Summer 2018 - Scholarship Winner
Food Shippers of America - Spring/Summer 2018 - 40
Food Shippers of America - Spring/Summer 2018 - 41
Food Shippers of America - Spring/Summer 2018 - 42
Food Shippers of America - Spring/Summer 2018 - Food Shippers of America 2019 John J. Murphy Scholarship
Food Shippers of America - Spring/Summer 2018 - 44
Food Shippers of America - Spring/Summer 2018 - Retail Trends
Food Shippers of America - Spring/Summer 2018 - 46
Food Shippers of America - Spring/Summer 2018 - 47
Food Shippers of America - Spring/Summer 2018 - 48
Food Shippers of America - Spring/Summer 2018 - 49
Food Shippers of America - Spring/Summer 2018 - Rail Update
Food Shippers of America - Spring/Summer 2018 - 51
Food Shippers of America - Spring/Summer 2018 - 52
Food Shippers of America - Spring/Summer 2018 - 53
Food Shippers of America - Spring/Summer 2018 - 54
Food Shippers of America - Spring/Summer 2018 - 55
Food Shippers of America - Spring/Summer 2018 - 56
Food Shippers of America - Spring/Summer 2018 - Industry Forecast
Food Shippers of America - Spring/Summer 2018 - Millennials and GenZ: The Key to Future-Proofing Your Supply Chain Workforce
Food Shippers of America - Spring/Summer 2018 - 59
Food Shippers of America - Spring/Summer 2018 - 60
Food Shippers of America - Spring/Summer 2018 - 61
Food Shippers of America - Spring/Summer 2018 - 62
Food Shippers of America - Spring/Summer 2018 - 63
Food Shippers of America - Spring/Summer 2018 - 64
Food Shippers of America - Spring/Summer 2018 - Blockchain: The Technology Soon to Take Over the Supply Chain
Food Shippers of America - Spring/Summer 2018 - 66
Food Shippers of America - Spring/Summer 2018 - 67
Food Shippers of America - Spring/Summer 2018 - 68
Food Shippers of America - Spring/Summer 2018 - 69
Food Shippers of America - Spring/Summer 2018 - 70
Food Shippers of America - Spring/Summer 2018 - Improve Your Leadership IQ
Food Shippers of America - Spring/Summer 2018 - 72
Food Shippers of America - Spring/Summer 2018 - 73
Food Shippers of America - Spring/Summer 2018 - 74
Food Shippers of America - Spring/Summer 2018 - 75
Food Shippers of America - Spring/Summer 2018 - 76
Food Shippers of America - Spring/Summer 2018 - Five Secrets to Find and Keep Top-Notch Talent Without Breaking the Bank
Food Shippers of America - Spring/Summer 2018 - 78
Food Shippers of America - Spring/Summer 2018 - The Risky Six: Six Keys to Shed Fear and Take Smart Professional Risks
Food Shippers of America - Spring/Summer 2018 - 80
Food Shippers of America - Spring/Summer 2018 - 81
Food Shippers of America - Spring/Summer 2018 - Customer Service and Safety are Priorities at Rapidly Growing Lazer Spot
Food Shippers of America - Spring/Summer 2018 - 83
Food Shippers of America - Spring/Summer 2018 - 84
Food Shippers of America - Spring/Summer 2018 - 85
Food Shippers of America - Spring/Summer 2018 - 86
Food Shippers of America - Spring/Summer 2018 - FSA Members
Food Shippers of America - Spring/Summer 2018 - 88
Food Shippers of America - Spring/Summer 2018 - Index of Advertisers
Food Shippers of America - Spring/Summer 2018 - 90
Food Shippers of America - Spring/Summer 2018 - cover3
Food Shippers of America - Spring/Summer 2018 - cover4
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