Today’s scrap recyclers face a different transportation industry than they did even a few years ago, according to Robert Winnick of KTI Inc., a Minneapolis-based third party logistics company, who spoke at a session about truck transportation at the annual ISRI Convention held recently in New Orleans.
Several broad trends have changed the face of truck transportation, Winnick said. First of all, he said transportation is no longer an adjustable transaction. “Rates are not as adjustable as they were in the past,” he said, adding that trucks dictate what the rates will be.
Furthermore, Winnick said that anyone who ships by truck is also going to have to get used to fuel surcharges. “The fuel surcharge is here to stay,” he said, adding that operating costs in general are also increasing across the board, as are insurance costs.
Winnick also said the industry is facing a driver shortage, with some 30 percent of drivers retiring in the next decade. In addition, scrap recyclers and others who want to ship via truck are also left with fewer and fewer carriers to choose from as increasing fuel and operating costs drive smaller companies out of the business.
However, Winnick said recyclers can take some control and offered some advice on how to navigate truck transportation. He said recyclers would be wise to pay attention to published weekly on-highway retail diesel prices. If a recycler sees the price go down, he might be able to negotiate the fuel surcharge, Winnick said. “Carriers won’t offer to lower their surcharge,” he said. “You have to bring it up.”
He also said having a general knowledge of mileage is helpful. “Know how far runs are,” advised Winnick. He said different routes are always available, and recyclers should be aware of different ones, which can translate into savings if a carrier is suggesting taking a longer route.
Winnick also advised recyclers to consider different modes of transportation, such as containers or intermodal. “Don’t be married to moving your product in just one way,” he said.
More information about KTI is available at www.ktitrans.com.
The 2007 ISRI Convention & Exposition was held April 18-21 in