June 22, 2018 09:40 AM
As you may have experienced yourself or read in various industry newsletters, the transportation and logistics industry is experiencing capacity shortages across all sectors. The trucking industry has been especially hard hit by multiple factors that are driving up demand and costs while reducing available driver and equipment capacity. These include:
· More restrictive driver regulatory requirements
· Significant driver shortages
· Shortage of available equipment, including intermodal chassis
· Demand up by 9.5% versus last year
· Diesel fuel costs up by 27.8% versus last year
· More congested ports and rail as shippers seek other options
Carus has been able to mitigate a portion of the impact from this tightening transportation capacity and increasing costs by using our private fleet and on-site carrier contracts. However, unfortunately, the higher costs and lower truck availability has greatly impacted our ability to operate when demand for our products exceeds our internal transportation capacity. Third-party carriers continue to demand much higher fees and longer lead times to confirm shipments.
It is our top priority to provide our customers with exceptional service and to meet needed delivery timelines. To do this, we need your help with effective and accurate forecasting and order management. Our ability to accommodate expedited and changed orders has been greatly diminished. Therefore, it is necessary for us to reemphasize and, in some cases update, our service standards to control these rising costs and ensure on-time deliveries.
Please contact a member of our team to discuss details of Carus’ service standards for shipment lead times and associated fees that may be applied. If you have questions or concerns, please contact your Carus Regional Sales Manager (RSM). You may contact them directly, call our switchboard, or send an email to the address below:
Carus Switchboard: (815) 223-1500 or 800-435-6856
Carus Email: email@example.com
Thank you for your understanding as we face this challenging logistics environment. With your help, Carus can continue to provide the high level of service you have come to expect from us.
Director of Supply Chain