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CPC Predictions for 2018

CPC Predictions for 2018

Posted: December 12, 2017 | Newsletter

Overall: The economy and the stock market are high flying in 2017. Also, there is global unrest as we end this year. US Truck drivers are aging, but some trucking companies are addressing this head on with their own truck driving academies vocational professions to costly 4 year degrees. Amazon has reinvented transportation standards and has created extra capacity, as well as Uber freight. Oil prices have remained semi-stable and Ocean carriers have consolidated into fewer choices. 

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Is the CSX Announcement to Impose Hefty Fees on some Rail Customers in 2018 Justifiable?

Is the CSX Announcement to Impose Hefty Fees on some Rail Customers in 2018 Justifiable?

Posted: December 12, 2017 | Newsletter

Reuters reported that CSX Corp will charge new fees for freight shipments to Mexico and hike charges for customers that fail to load or discharge railcars by agreed deadlines or ship unsafely loaded or overweight railcars as of Jan. 1, the company said. Is this justifiable? Is this just another carrier imposing rate hikes? CSX wants to change shipper behavior to be timely, not overstuff trailers beyond capacity and add new fees for processing paperwork in Mexico and additional handling charges. CSX says the charges were "in line with efforts to optimize the use of assets," including railcars. "These changes are intended to improve the efficiency of our operations," The move was initiated by CSX Chief Executive Hunter Harrison, who took the job in March, has been streamlining operations with his "precision scheduled railroading" strategy, which relies on running freight trains based on strict schedules instead of individual shippers' needs. "Shipper-caused delays are a part of the whole story along with CSX-caused delays," Hatch said. "Hunter Harrison is trying to reset the whole relationship." Hatch said similar charges were part of Harrison's strategy when he led a turnaround at Canadian National Railway Co through 2009. The carrier also said several customers, including U.S. packaged food maker Conagra Brands Inc, would no longer be able to use other railroads to move freight in certain locations if CSX's system can not handle their cars, a process called "reciprocal switching." The change may force these customers to ship freight by truck, which is costlier than rail.

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Is Nearshoring the Best Option for Your Company?

Is Nearshoring the Best Option for Your Company?

Posted: December 12, 2017 | Newsletter

Offshoring - Outsourcing was the trend at the turn of the century. However, recent trending is pointing to a more close to home solution - Nearshoring. So, which one of these two options is a better choice for your business? Each solution is not as cut and dry as you may think and should be carefully considered depending on your business requirements and goals. Offshoring is the relocation by a company of a development process to a distant location. Cheaper locations are the most commonly chosen so that the overall business cost may be significantly decreased. For example, China or India are two of the most popular countries for western companies looking to outsource their manufacturing costs. However, in recent years, the cost of labor in those countries is on the rise and the governments are abandoning foreign currency conversion manipulations as a policy.

Nearshoring refers to a partner based in a country adjacent to the customer's own one or close to it, most possibly sharing a host of characteristics, including laws, economic bonds, accepted business practices, cultural background and such. The big advantage is the distance between the two entities. It allows for less expensive travel, a greater degree of control of development process, especially in critical situations.

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2018 UPS + FedEx Parcel Rates Out - How much more will you pay?

2018 UPS + FedEx Parcel Rates Out - How much more will you pay?

Posted: October 24, 2017 | Newsletter

FedEx and UPS announced their 2018 parcel rates effective January 1, 2018.  The range of increases within weight breaks and zones rose anywhere from 2% to 13%.  CPC has analyzed the impacts and has developed a tool to analyze any Shipper's profile and provide projections for your 2016 expense within 2-3 business days. This service is invaluable as it gives clients the upper hand in understanding their program and mitigating any unfair increases that may be levied. Yes, you can push back and reduce the increase!  Call CPC today and stay ahead of the increase.

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Will there be Major Changes with the LTL Market?

Will there be Major Changes with the LTL Market?

Posted: October 24, 2017 | Newsletter

The LTL market has regained its health. Carriers are applying pricing discipline and resist the urge to expand capacity beyond fulfilling immediate shipper needs.The top three spots include FedEx Fright, XPO Logistics and Old Dominion, all non-unionized carriers. All three have seen a slight improvement in Operating Revenue ratios and increased earnings. The three carriers have forecasted improved forward earnings, optimistic about the future with continued improving net income and continued efficiencies and business acquisition. Many leaders in these companies are optimistic as they review their KPIs; Wayne Spain, president and COO of Averitt Express said, "There is reasonable consistent growth in 2017."

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