While the economy continues its gradual recovery, it has become critical for over-the-road carriers to manage multiple obstacles while expanding their resources and getting back to full strength. That was the main message of leading trucking executives during a panel discussion at the recent 2011 NASSTRAC Logistics Conference & Expo in Orlando, Florida. These obstacles include government regulations, managing capacity, increasing fuel costs, and shipper-carrier relationships and collaboration, among others.

Participating in the panel were Derek Leathers, incoming President and Chief Operating Officer of Werner Enterprises; Judy McReynolds, President and CEO of Arkansas Best (parent company of ABF Freight); David Congdon, President and CEO of Old Dominion Freight Line; and Bill Logue, President and CEO of FedEx Freight. They addressed more than 400 transportation executives from leading manufacturers, retailers, 3PLs and providers.

“Although there was a general feeling of optimism, the participants express concern about our growing but still fragile economy, availability of qualified drivers, equipment plans and strategies, and accelerating deterioration of our nation’s transportation infrastructure,” John Langley, Ph.D., NASSTRAC’s Education Advisor and facilitator of the panel had mentioned to me after the event. “Overall, there were positive thoughts about the quality and responsiveness of services being provided today to customers of the firms represented on the panel.”

Said Leathers of Werner Enterprises: “With rising commodity prices, inflation and the need to drive out unnecessary costs, tensions between shippers and carriers may naturally elevate. Identifying sustainable savings wherever possible is imperative, as rate-based savings are unrealistic. Rates must increase to allow for re-investment in the industry’s aging fleet. As shippers support these rates, providers must develop innovative solutions that move more freight at lower costs. Even with these challenges, we must collectively pursue efficiencies throughout the supply chain.”

McReynolds of Arkansas Best shared her perspective: “Our market seems to change very rapidly, particularly when there seems to be a swift change in the economy. This presents issues for all of us in trying to plan for the future, and we are experiencing one of those periods right now. This time it seems to be a positive change. I am glad to see improvements in our business levels, which appear to be greater than what might be expected normally.” Aside from the economy, safety and the ability for shippers to have a successful carrier relationship in a more regulated environment is a challenge for carriers like ABF, she added.

Congdon of ODFL emphasized his concerns: “We are rapidly approaching a defining moment in the life of our industry and our nation’s supply chain infrastructure. If our nation is to be successful in a global marketplace, then carriers, shippers and legislators alike must work together to find solutions that support real productivity advancements. Advancements, which free the carrier community to operate at a sustainable margin, deliver a competitive advantage to our nation’s economy and do so in a manner which is ecologically responsible.”

He added that with the U.S. population increasing by about 2.6 million people per year, it is increasing the amount of consumer demand, which necessitates the need for more trucks and subsequently more congestion. And coupled with the threats of proposed hours of service (HOS) changes that would decrease available driver time per day by one hour, and CSA, which could reduce capacity, Congdon stressed that all modes of transportation need more methods by which they can improve productivity.

FedEx Freight’s Logue said that the issue of driver availability could be impacted depending on how the HOS ruling plays out, coupled with what CSA numbers look like as it moves further along: “While safety is critical, these things could increase expense and increase congestion. We believe we should go forward with CSA and EOBRs, but perhaps back off HOS changes that have been in place since 2004 and have been very successful.”

I am continually amazed at the way the leaders of the transportation industry are able to stay on top of issues, identify emerging trends, and find solutions to the challenges they face. But they can’t tackle these challenges alone. Shippers and providers need to continue to collaborate closely on issues important to them. Only then will we be able to overcome them.