A core specialisation we have ensued is to tap into the underdeveloped Less-than-truckload (“LTL”) Reefer business in North America. As we look to gather nationwide resources, unlike the proliferation of dry van LTL, a gap is clear.
LTL carriers, operate on thin margins; have significant negative impacts due to empty trips, idled capacity on lots, and rising costs. These inefficiencies tend to cascade downstream; for example, empty trips may affect prices at retail. However, proper deployment of information communication technologies (ICT) has enabled the possibility of innovative new business and operational paradigms.
One promising innovation is the concept of LTL carrier-carrier collaboration, which provides opportunities for LTL carriers to exploit synergies in operations (such as excess capacity), reduce costs associated with fleet operation, decrease lead times, increase asset utilization (power units), and enhance overall service levels. LTL carrier-carrier collaboration is a derivative of multi-mode transportation models such as ocean, rail and full truck load.
The bearish attitude of existing carriers towards incremental capital expenditure, creates a perfect fit for transportation managers to invest in systems, and create suitable synergistic partnerships. We have successfully implemented this strategy on a number of lanes to increase service capacity, reduce monopolistic reliance, and significantly improve costs for our LTL shippers.
The natural extension of this principle, is to explore shipper-shipper collaborations. Even though, the commodity classifications, temperature requirements within the same category can differ significantly in the refrigerated business, opportunities are abound and constitutes our evolution.