As anyone watching the freight market will tell you, both small and mega carriers are feeling the decline of demand, overcapacity and rising operating costs.
Over the past few days, publicly traded carriers such as J.B. Hunt, Marten Transport and Heartland have released their second quarterly earnings, and so far, the results are weak. Marten Transport Executive Chairman Randolph L. Marten said, “Our earnings were heavily pressured by the freight market recession’s oversupply and weak demand, inflationary operating costs, and cumulative impact of freight rate reductions leading to freight network disruptions.”
As a leader, it is your job to take calculated, well-informed decisions. However, there will always be an element of risk. Inactivity or constantly changing directions can drain team spirit quicker than any wrong decision.
In 2020, content creator Oghenetega Orhorhoro shared a video encouraging those struggling to keep going through tough times. While most of her posts feature humorous reactions on fellow creators’ content, I remember saving this video as its message stood out. Her message was simple, yet powerful: Continue. You can keep going. You can do this. Continue.
I mention it now as I believe Orhorhoro’s message can prove useful to decision-makers in the freight industry. More than just enduring long hours and tough conditions, it’s about maintaining the drive and determination to move forward despite the economic hurdles.
During a recent chat with Spencer Tenney, president and CEO of Tenney Group, he reminds us how one should approach uncertain times in business. “This is a moment where there’s significant pressure in the marketplace, and the options are to be reactive to that pressure or to be proactive.”
He continued, “I’m of the opinion that you’re in much more control or you have much more influence over your future profitability if you’re being proactive in your posture to go out and re-engineer how you’re creating profits.”
While it doesn’t necessarily mean doubling down on what you’re doing, there can be a variety of different things that can help, such as diversifying revenue streams, adjusting routes, negotiating harder for fair rates and upgrading leadership when needed. And sometimes it could mean just holding on through the uncertainty.
Moreover, this endurance has pushed players in the market to innovate and adapt. Whether it’s exploring new markets or leveraging new technology, the ability to adapt can become your greatest asset.
While the road may be rough, don’t get discouraged. If you’re still up and running, you’re still doing better than the carriers who had to shut down last year. The work you do may not seem significant in the grand scheme of things, but take a moment to recall the vision and mission that inspired your endeavor. It’s this resilience that will ultimately help you emerge stronger on the other side of the downturn.
Pamella De Leon is a senior editor of Commercial Carrier Journal. An avid reader and travel enthusiast, she likes hiking, running, and is always on the look out for a good cup of chai. Reach her at [email protected].