Adapting to Big Shifts in Logistics

The Professional’s Thoughts on Adapting to Big Changes in The Freight Industry

The logistics industry has recently been shaken by significant changes, with major players like YRC (Yellow Corp.) and Convoy shutting down, while Kindersley has also experienced challenges, leading to changes. 

These events underline the volatility and the rapid evolution within the freight market, compelling carriers and clients to adapt swiftly to remain competitive and efficient. 

Here at Freightera, we are closely monitoring these developments and adapting our approach to each lane and shipment, so as to continue providing top-tier service and pricing.

How We Got Here

The past few years have seen significant economic shifts, with inflation driving up costs across the board, and that includes logistics. Coupled with a freight recession that has persisted over the past year or two, these factors have resulted in fewer shipments and increased operational pressures on carriers.

YRC (Yellow Corp.)

A former giant in the industry has recently ceased operations and filed for bankruptcy. This closure is a significant blow to the industry, especially considering the company’s nearly century-long history. The downfall of Yellow highlights critical vulnerabilities within traditional freight models, particularly those struggling with debt and outdated practices.

Convoy

Another major name in logistics, shut down operations despite significant venture capital backing. Convoy’s innovative approach to digital freight brokerage was not enough to sustain its business model, demonstrating that even tech-driven startups are not immune to harsh market realities, economic pressure, and reduced shipping volume.

Kindersley

Kindersley has also undergone significant operational changes. Not as drastic as shutting down, mind you, but they did have to change up their business model a bit and focus solely on the Canadian market. That means that they had to cease their cross-border operations. This move impacts pricing for lanes that Kindersley used to service. Rates may potentially go up as other carriers have to fill in the gap. For Kindersley, this strategic shift could mean a more concentrated focus on domestic logistics solutions. We may potentially see improved service quality within Canada at the cost of reduced geographical reach.

Lessons from Freightera’s Playbook

In contrast, Freightera has done the opposite and has, in fact, thrived by embracing a digital-first approach. Our focus has always been on ease of use, efficiency, and sustainability, and it appears that it was the right one. Our platform provides you with access to hundreds of carriers, with competitive rates and lower fuel emissions through more efficient modes of transport. 

This strategy has not only helped us grow by 140% YoY but also allowed us to help our clients find better shipping solutions amid turbulent times in the industry.

Adaptability is Key

The stories of YRC, Convoy, and others serve as critical lessons for those in the industry. Adaptability is not just about chasing the newest technology. More than that it’s about understanding and predicting the best ways to meet client demands. Based on our experience, this means:

• Perfecting What You Do Well: Our clients have stayed loyal not because we seek to surprise them at every turn. We’ve focused on perfecting what we do well and offering the best possible service.
• Improving Technology and Systems: Improving what works without changing it and expanding on those features has proved to be very beneficial for client satisfaction.
• Enhancing Their Own Financial Health: Taking care of depts and paying off partners first before any further investing leads to healthier and longer-lasting relationships.

For shippers, adapting to these changes may involve:

• Seeking Reliable Partners: Shippers should look for shipping companies with a proven track record of quality and reliability.
• Utilizing Digital Platforms: Platforms like Freightera’s allow you to compare freight quotes from 100s of carriers quickly.
• Planning for Flexibility: It’s always smart to plan your shipments with flexibility in mind. If anything happens that could delay your shipment, it’s a good idea to have extra time available, just in case.

Conclusion

The logistics industry has been coming to a crossroads for some time now, with traditional business models in the industry facing challenges and having to change their practices to survive, or risk shutting down. 

At Freightera, we are doing our best to use our technology to support both carriers and shippers through all of these changes. By focusing on efficiency, customer service, and sustainability, we aim to lead by example and to show what works and why in the evolving freight landscape.

Interested in how our carriers are adapting to these challenges? Take a look at how our carriers utilize new tech to reduce LTL Freight emissions. 

Alternatively, simply get your instant freight shipping quotes now, for free and see how much time and money it can save you, without any extra effort on your part.