Transportation & Market Trends

MCG stays up to date with the most recent market dynamics, including volumes, regional demand, and available capacity across transportation modes, assessing their impact on pricing and margins, and analyzing whether trends are cyclical or more systemic. MCG also consults on the influence of regulations and supply chain initiatives on industry dynamics, evaluating key players, competition, differentiation, and growth opportunities both domestically and internationally. Additionally, we can provide insights into industry developments and advancements, emerging technology products, mergers and acquisitions, managed transportation, and value-added services. Lastly, we cover the growth of on-demand transportation, including digital truck brokerage and freight forwarding services, last-mile distribution and omnichannel fulfillment, and the associated challenges and opportunities in light of these newer entrants in the form of digital brokers, freight exchanges/marketplaces, and public load boards, as well as larger market disruptions whether through next-generation technologies or the significant expansion of key players such as the "Amazon effect."

Over-the-Road (Trucking) Services

  • Providing analysis from the commercial carrier (TL & LTL), freight broker and customer (shipper’s) perspective. Evaluate the impact of increasing “supply-side” competition as well as continuing trends toward further industry consolidation. We also cover newer products such as more prevalent rate benchmarking tools, improved backhaul utilization and reduced empty miles, self-service applications (ie. dock scheduling) in addition to the impact of more advanced fuel recovery programs.

  • Discuss public load boards and freight exchanges, as well as the tools now available for improved data & analytics and rate benchmarking to include freight rates, fuel, and other accessorials.

  • Provide a comprehensive overview of the growth in “on-demand” transportation including newer players such as digital truck brokers, (ie. Uberfreight, Loadsmart, and Convoy) and the impact of Amazon. Discuss the impact of digital truck brokerage services and the reaction by incumbents, as well as some of the challenges this type of model faces. Also the emergence of final mile deliveries and the factors critical to their success.

  • With the ever-increasing need for greater visibility – vehicle tracking has become a “must have” among many shippers and logistics service providers. These solutions come in the form of many mobile apps (ie. smartphones, tablets), real-time visibility companies the likes of Project 44, Fourkites, and Macropoint, to name a few, and finally the telematics companies themselves offering, through onboard computers and ELDs, integrations with today’s more advanced TMS.

  • Evaluate the impact of new regulations including newer mandates on Electronic Logging Devices (ELDs), Hours of Service changes, etc. How do these continue to affect available capacity, among small to medium-size carriers versus larger fleet operators? Also, how will new autonomous technology impact the industry and what role will it play in two, five, and ten years?

  • Assist clients in exploring options around private versus dedicated fleets, other equipment types (ie. flatbeds, hoppers, pneumatics, etc). Leveraging new software to improve fleet and driver visibility, capacity utilization, and operating margins. Improved vehicle maintenance for increased driver and highway safety, as well as fleet/asset longevity, etc.

Sea / Ocean Freight Services

  • Provide perspective on current market dynamics related to ocean container shipping, both Full-container (FCL) and Less-than container (LCL) markets, by regions and specific trade lanes. Consider rate benchmarks such Xeneta, Freightos, and Upply, among others for increased transparency and market intelligence.

  • Discuss the primary differences between Beneficial Cargo Owners (BCOs) and Non-Vessel Operating Common Carriers (NVOs) through the lens of the major ocean carriers and freight forwarders. Evaluate strategies for shippers to consider when approaching annual freight tenders, contract negotiations and rate management throughout the year. Assess common carrier fees and charges ranging from general rate increases (GRIs), and peak season surcharges (PSS), to fuel or bunker adjustment factors (BAF), and discuss best practices among leading shippers.

  • Some established ocean carriers are adding capabilities beyond port-to-port and offering more value-added services. Others have made key acquisitions in competition with NVOs, which have introduced additional transport modes in order to offer their customers increased modal diversification and the possibility of a “one-stop-shop”.

  • Discuss the impact of the “low sulfur rule” on the market and the effects of slow-steaming and longer transit times that come as a result.

  • Expertise in dry bulk ocean services, and whether to engage vessel owners (bulkers) and operators directly, or ship/freight brokers based on volumes, required vessel equipment/sizes, ports of call, and global regions of operation.

Rail / Intermodal Services

  • Analysis of the Class I railroads and the continuing growth drivers for this segment.

  • Expertise in dry bulk shipping by rail whether in combination with barge or truck. Considering specialized types of railcar equipment such as open-tops or covered hoppers, etc.

  • Evaluate intermodal operations, the role of intermodal marketing companies (IMCs) and evaluate the types of business that make sense for modal conversion from road to rail. Typically high-density products with low demand volatility and a minimum of 500-600 miles between origin and destination, are desirable for shifting from truckload to intermodal.

  • Discuss new technologies in this segment mainly geared towards asset location devices and improved visibility to railcars.

  • Evaluate options for leasing or purchasing railcars as well as explore the companies that offer customized programs for specific needs as per certain commodities.

Airfreight Services

  • Provide a comprehensive overview of air cargo and airfreight services, including air cargo carriers, airfreight forwarders, business models, air gateway concepts, cargo aircraft types and equipment (ie. Unit Load Devices – ULD).

    Also cover Container Freight Stations (CFS).

  • Evaluate methods of shipping temperature-controlled pharmaceuticals in air cargo whether in an “active” or “passive” environment. Active – containers “opticooler & unicooler” – compressors, heating elements vs. dry ice. Passive – cold packaging. -2 degrees Celsius to +8 degrees Celsius.

    Container leasing (sample): In-Network leases – 9 package days / Roundtrip leases – 11 package days + additional day rates, usually by ULD type.

  • Provide detailed guidance on DGR (Dangerous Goods Regulations) for air cargo, including packaging and handling requirements.

  • Describe the technology related to temperature-controlled transport and asset management/tracking which is used for increased utilization and security among other aspects, including mobile technology, and data recorders, etc.

  • Ensure that the following factors exist when shipping these types of high-value, perishable products. Airfreight expertise, constant temperature requirements, reliable equipment, clean facilities, excellent training & handling, visibility & communication, “GDP certified”. Equipment Suppliers (sample): Envirotainer, Va-Q-Tainer, Dokasch, Cool Container (PharmaPort360) Industries: Pharma, Healthcare, Fresh-cut flowers, etc. Industry Conferences: Cold Chain IQ, Controlled Logistics Europe

Managed Transportation

  • Advise and consult on the trends in “managed transportation” in the form of 4PLs and Lead Logistics Provider (LLPs). This model goes by many labels and is often considered by shippers when exploring either a “total outsourcing” of their logistics and transportation to one entity or a hybrid model, utilizing 4PLs for only certain elements and insourcing the remainder. Provide insights into the specific roles these companies play (either global or domestic), while managing a variety of services, modes, and products for individual clients. Complete a formal business case analysis, evaluating for shippers which areas could be entirely managed through more advanced automation and which would be better served if outsourced to a capable 3PL/4PL. Discuss the factors critical for success using specific industry examples.

  • Differentiate among asset-based carriers and non-asset logistics service providers (LSPs) by market share, areas of focus and expertise, and their respective value propositions.

  • Providing a cloud-based platform for complete control tower visibility and fully integrated with all network partners with full interoperability of systems. Managing all aspects from freight sourcing, planning, execution, cost management and reporting.

  • These entities often become very strategic partners as they have enormous volumes of data from managing many transactions and will act on behalf of their customers during contract negotiations and in determining service level agreements with carriers.

Last Mile Distribution

  • Last Mile market shows more opportunity for further consolidation with companies becoming increasingly “national”. However, still a large number of “mom & pops” and owner-operators remain at the local and regional levels. There are certainly pros and cons to each of these and will vary by the individual client and their specific needs.

  • A number of larger national and regional LTL carriers and 3PLs are getting into the mix (ie. Estes, Pilot, AIT, etc). With the continuing evolution of Transportation Management Systems (TMS), the ability to integrate with network partners has greatly improved. This is also leveling the playing field in many ways. With the explosion of e-commerce, many LSPs are “dabbling” in last mile, and lines are becoming increasingly murky between asset and non-asset. Continued penetration of Amazon Logistics in both the Last & Middle mile sectors will drive companies to either compete or partner.

Sustainability & Green Initiatives

  • Through the use of advanced network analysis and transportation management software, we can calculate across our client’s transportation modes, their carbon (CO2) footprint and Greenhouse Gas (GHG) Emissions, as well as explore specific practices for potential reduction and avoidance.