The BlueGrace Review: Transportation Changes And Events In 2015

At BlueGrace Logistics we like to review and acknowledge all the changes that have happened over the year. Within this review, we’ve found that it’s been another very interesting year for the transportation and supply chain industry with many big changes!

Buy Out Bonanza!

  • UPS bought Coyote Logistics
  • Echo bought Command Transportation
  • CH Robinson bought
  • XPO Logistics bought Con-way

Fuel Prices

  • Revenues fell due to fuel price plunge.
  • Fuel started the year around $3.75 a gallon and will end the year around $2.40 a gallon. This has caused overall freight revenues to drop in all OTR modes.

The Return of Rail

  • Shippers have built greater lead times into orders to take advantage of moving orders on the railroad. This trend looks to continue moving into 2016.

Drivers, Capacity & Ports

  • Driver shortage continues.
  • Capacity is not as tight as prior years moving into 2016. The driver shortage is not as big of an issue as it has been in the past, but the occupation is still aging and will need to be addressed in 2016.
  • West Coast port shut down opened up opportunities for the Ports of Savannah, NJ, and Miami.
  • The West Coast port slowdown caused a 3 month back log in February. There were as many as 33 cargo ships parked waiting to unload, allowing rerouting opportunities to East Coast Ports. The widening of the Panama Canal will also push more business to the East Coast in the near future.

Final Review? 2015 Was An Overall Great Year!

2015 was a great year for the transportation industry and we look forward to the same in 2016. There is still time to review the current state of your supply chain and streamline it for 2016. Feel free to contact us at BlueGrace Logistics to have our team review your situation, help you build a new plan, and make next year the best ever for your transportation department.