Editor’s Viewpoint
What ’s Questionable
At LQ we need your opinion. For eight years LQ has upheld its primary goal, namely, to be the only publication with the consistent mission to be a logistics publication written by professionals for professionals in the field of logistics in Canada – affording authoritative thinking on the complex and fast-changing work of the logistics. While we would never depart from our legacy of providing the finest of editorial content, we’re changing, as evidenced by this issue. We’re updating our design. We’ve introduced several new members to our board as announced in our news section. We’re becoming more international in scope. And we have launched several pilot surveys.
Engaging our board and soon our readership with survey questions posted online and within LQ keeps us better informed about trends and provides editorial direction. It also puts ideas through some rigorous testing and dialogue before they might be applied toward strategic thinking.
Our first LQ survey focused on carrier capacity in Canada and was prompted by signals that there is a significant reduction in terms of carrier capacity in the transborder marketplace this spring and summer. Not surprisingly, the driver shortage, a dramatic hike in insurance rates, rising truck costs with new emission standards coming to the fore, and even greater competition the United States with Mexico penetrating that market this fall, are taking their toll, or will likely do so soon. The situation in Canada has left some businesses unable to meet demand and a rising number of U.S. carriers are refusing business in Canada in order to avoid the costly ride back home.
Furthermore, the driver shortage is not impacting carriers equally. Dedicated carriers with dedicated drivers and stable volumes remain unimpacted. Less Than Truckload (LTL) carriers with a solid base of drivers, often unionized, are not likely to be impacted in the adverse way that truckload (TL) carriers have been.
This already daunting situation is now aggravated by is what is perceived to be an increase in demand. The recently perceived spike in demand for carriers in this transborder market has been linked to many companies speculating on the amount of inventories they want to hold at this time. It has also been suggested that what we’re witnessing isn’t, in fact, a spike in demand. Instead, it’s a return to normal volumes not enjoyed during the past year. Transportation companies heading south may also be ensuring fewer trailers are on the road and that they’re full. After all, they’re being impacted by increased operating costs due to the southbound border delays.
I look forward to your input about this issue, and comments concerning our new look. I thank you and our board for helping to create the LQ of the future, and I wish you a safe and happy summer.