July was a challenging month for small carriers in the transportation industry. With volatile rates, tightening capacity, and spikes in diesel prices, many carriers faced tough decisions that would either protect their margins or leave them struggling to survive. The key to success for small carriers during this tumultuous time was discipline, strategy, and execution.
One of the main tactics that successful carriers employed was staying close to home and focusing on repeat lanes. By locking in consistent power-only or short-haul freight, carriers were able to keep their wheels moving and manage their fuel costs effectively. For example, a 6-truck fleet in Tennessee opted for a tight 250-mile triangle run with a regional food distributor instead of longer hauls, resulting in high frequency, predictable rates, and lower maintenance risk.
While rates may not have been ideal, carriers who used their downtime wisely saw significant benefits. By picking up the phone to follow up with brokers, check in with old shippers, and build relationships, carriers were able to secure better offers and maintain steady business flow.
In terms of driver management, carriers focused on coaching rather than punishing. By addressing issues such as harsh braking, speeding violations, and HOS mistakes with constructive feedback and support, carriers were able to improve driver performance and overall safety scores.
Financial management played a crucial role in navigating the challenges of July. Carriers that tracked cost-per-mile daily were able to spot trouble early, especially when faced with unexpected spikes in diesel prices. By monitoring expenses closely and making adjustments as needed, carriers were able to stay on track financially.
Technology also played a key role in streamlining operations for successful carriers. Those who upgraded from manual processes and Excel spreadsheets to real TMS tools were able to improve dispatch and billing efficiency, ultimately moving their businesses forward.
Looking ahead to August, carriers are advised to audit their performance in July, schedule weekly safety talks, build a Q3 shipper list, reevaluate cost per mile, and allocate time for outreach efforts. By learning from the lessons of July and making strategic adjustments, carriers can set themselves up for success in the coming months.
Ultimately, July presented small carriers with a choice – adapt to the changing market conditions or suffer the consequences. By implementing the right systems, mindset, and actions, carriers can navigate the challenges ahead and emerge stronger and more resilient in the competitive transportation industry.
