60 likes | 158 Vues
Explore the evolving landscape of the truckload industry from 2001 to 2004, highlighting factors such as demand growth, challenges faced by fleets, barriers to entry, and the success story of Celadon as a leading truckload carrier. Discover the critical skills and expertise required in this sector for navigating regulatory complexities, negotiating effectively, and optimizing logistics strategies.
E N D
Transportation, Distribution & Logistics September 2004
Our Industry - Truckload Source: American Trucking Association $ in billions • Celadon is the tenth largest truckload carrier • Point to point service with no intermediate handling of freight • Demand growing 5% to 6% annually • Non-union
Truckload Industry 2001 - 2004 • Industry dynamics • 15% of all fleets failed • Difficulty in obtaining insurance • High fuel cost • Lack of financing • Production of class 8 trucks declined • 1998-2000 240,000 per year average • 2001-2003 140,000 per year average • 2004 250,000 - replacements • Barriers to entry - No new company start-ups • Inability to obtain insurance • High fuel cost • Shortage of drivers • Cost of technology
CELADON Highlights • Leading truckload carrier with international focus • Domestic - 54% of revenue • Mexico - 38% of revenue (own Mexican carrier) • Canada – 8% of revenue (own Canadian carrier) • 2,531 tractors, 6,966 trailers • Award winning safety and service
SKILLS TRANSITION • REGULATORY EXPERTS –Pre-Deregulation • ABILITY TO DECIPHER GOVERNMENT REGULATIONS • NEGOTIATORS – Post-Deregulation • SKILLED AT FINDING LOW COST PROVIDER • SOPHISTICATED LOGISTICIANS – 1990’S to Present • Optimal mix of modes • Sourcing Raw Materials • Order Frequency • Locating Plant & Distribution Centers • Systems Development
WORKFORCE SKILLS • MARKETING • SYSTEMS DEVELOPMENT • SALES TRAINING • ENGINEERING • FACILITY MANAGEMENT