Specialist
Former board level executive, Pricing at Estes Express Lines In
Agenda
- Less-than-truckload (LTL) industry overview
- Competitive positioning for national and interregional carriers
- Pricing dynamics and cost categories
- Technological investment trends
- Outlook for 2019
Questions
1.
What is your updated perspective on the less-than-truckload [LTL] segment, and can you highlight any of the overarching trends in the industry that we should be paying attention to?
2.
Can you walk through the unit economics that go into the pricing process for LTL carriers? What are the different factors and how do they get weighted?
3.
What is a dimensioner, and what are the costs associated or initial investment needed for a dimensioner?
4.
How should we assess the costs of pickup and delivery and dock prices? What factors make up pickup delivery?
5.
Building off economies of scale, can you explain how discounts come into play and what factors warrant certain customers getting discounts?
6.
How do LTLs calculate their minimum charge or their floor price?
7.
It’s my understanding that certain LTLs have begun to develop their own transportation management system. If that is the case, how does that change the dynamic between carriers and the 3PLs?
8.
Can you walk through some of the capabilities that are offered through a TMS system?
9.
Has the feedback been good on most TMS systems? Essentially, this eliminates the need for some shippers to bring on a 3PL, so in terms of cost savings, it appears that this is a positive thing for certain shippers. Has there been much pushback from 3PLs, and have shippers been giving good feedback on these?
10.
What are your thoughts on Old Dominion? It appears that its growth has exceeded the rest of the industry. What has been driving that and what has driven its higher-than-secular growth?
11.
You mentioned that Old Dominion is heavily involved in industrial LTL. Does that indicate that there are more attractive end markets than others? Is industrial considered more attractive than retail due to metrics and weights?
12.
What are your thoughts on YRC’s positioning, and the strengths and weaknesses in its operations?
13.
Carriers all say that pricing aggressiveness in a downturn is unlikely given that the “bad players” have been effectively removed from the market. Is that a fair argument or is that just optimism?
14.
Let’s discuss M&A. Is there anything in the market currently or historically regarding economic conditions or indicators, that makes you think deal activity will pick up or slow down?
15.
Analysts expect weight per shipment to decline in H2 2019. What is your outlook on pricing for the remaining portion of 2019, and where are things headed in the industry?
16.
Are there any major topics that we haven’t had a chance to cover that you think are important to highlight?
