Economic Oversight: The Longer Impact of COVID-19 on the Supply Chain
How Will Covid-19 Affect Freight Shipping?
The shipping industry is constantly changing, and at WM Martin Transport we believe in continuous growth. This pandemic is an accelerator of change and we’re here to provide insight into the longer impact of COVID-19.
For some time, the logistics industry price transparency and discovery has been relatively all over the place. It is rare to find someone that is buying capacity a whole lot cheaper than someone else.
With prices somewhat equal across the board, we’ll see a shift from the concept of “I can save $25 by shifting my business over to this person” to the concept of “I can gain ‘X’ amount of more value by working with this person.” The value lies in finding a contact that understands your industry, understands your needs better, and/or provides you with market insight, business intelligence, and more.
The COVID-19 impact will create a shift in the need for integral partnerships between shippers and 3PL providers, as opposed to just vendors with rates and trucks.
There’s a lot of businesses of all sizes in the 3PL industry that have built themselves on the “rise and grind” attitude of hustling and outworking the next guy.
What we predict on the backside of COVID-19 is the need for a more transparent marketplace. A marketplace where the value-added services that true operating partners bring to the table have a monetizable value.
How will COVID-19 Affect Carriers?
Pandemic or not, this industry has always seen 3PL-carrier relationship toxicity.
The truth is, carriers have tons of leverage. Carriers call the shots for not only pricing power, but also the ability to run a route, run a new lane, or provide an additional service.
3PL Partners need to realize the value in creating a win-win situation for carrier partnerships. It’s better business when carriers are being allowed to do things that meet their best interest.
How are COVID-19 Rates Affecting Cost?
There’s a lot of noise on how rates are affecting carrier costs, capacity cost, and more. It’s true and tragic in a lot of situations. Now more than ever, carriers need to find conscientious 3PL providers, who are pushing rates down only to the extent of what is being pushed down to their shippers. “I’m lowering your rate because I’m lowering mine.” Be fair and honest!
Discover the WM Martin Transport Difference
Everything we do is communicated in a timely manner because the sin of omission is the downfall of many businesses. If the brokers don’t know the front end questions to ask their shippers, they can’t get the information to the carrier to ensure they have the right equipment. Hire someone you can trust.
In the midst of this pandemic, business is complicated. However, moving your business into excellence is simple with WM Martin Transport. We have a knack for seamlessly becoming an extension of your team.
With 98% average on-time delivery rate, we continue to be the leading 3rd party logistics company along the Southeastern US for Truckload and LTL. We are experts in optimizing your supply chain with insights that make it succeed.
The real impact comes from our solutions-minded staff. Each member of our team believes it’s their calling in life to genuinely care, serve and add value to others. Our team believes in honesty and excellence.
“We plan to always use WM Martin Transport because they’re reliable. They give us a fair rate and they’re trustworthy.”
Dixie P., Milled Lumber Shipper
Or Talk To A Freight Logistics Expert: 850.898.2261