Fleets discuss cost, productivity

August 26, 2010

 | by: Denise Rondini

(Left to right) Max Fuller of U.S. Xpress, Leo Suggs of Greatwide Logistic Services and Tom Kretsinger of American Central Transport

A panel of fleet executives talked about the changes they made to their operations during the recent recession, what they are doing today during the transition and what they see for the future with the cost and productivity challenges they will face.

Max Fuller, co-chairman of U.S. Xpress; Leo Suggs, chairman and CEO Greatwide Logistic Services; and Tom Kretsinger, president and CEO of American Central Transport, shared their strategies and ideas in a panel discussion during the Commercial Vehicle Outlook Conference at the Great American Trucking Show Aug. 26.

Describing current struggles, Fuller said, “Every day is a bold move. If you are not making bold moves, you will not be here for long. We had to change the way we did business during the last two or three years. We did damage control and now some of the things that we tied down we will have to loosen up and move forward aggressively and give good service.”

Suggs said if there is any silver lining to a recession, “it is that it causes you to look at every part of your business and eliminate inefficiencies. Those who survived the recession have come out of it much stronger.”

The panelists agreed one of the biggest challenges they face is capacity, which is impacted by the ability to find and retain drivers. “The priority today is what do we need to do to find capacity and we will have to do things we have never done before,” Suggs said. One bold move, according to Suggs, may be recruiting in eastern Europe.

The discussion also focused on equipment and 2010 engines. The U.S. Xpress fleet is already using 2010 engines and Fuller said driveability and reliability are good, but that cost is a major problem. “And it is not just the cost of the engine, but the cost of the truck as well,” he said.

Krestinger said the new engines “cause sticker shock at time when we have come off of 18 months of cost cutting.” He believes owner-operators are not in a position to purchase new vehicles.

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1 Comment

  1. Jim A. says:

    Just wait and see if the night curfew or sit 16 hours to drive again passes. If it does prepare for lay offs. Either you add 20% more trucks to your fleet and hire 20% more drivers or you going to need a big bandage to heal. If freight rates increase 20% and driver pay raises trucking wont be too bad.

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