{"id":8748,"date":"2024-05-29T09:27:21","date_gmt":"2024-05-29T16:27:21","guid":{"rendered":"https:\/\/www.freightera.com\/blog\/?p=8748"},"modified":"2024-06-26T17:03:03","modified_gmt":"2024-06-27T00:03:03","slug":"adapting-to-big-shifts-in-logistics","status":"publish","type":"post","link":"https:\/\/www.freightera.com\/blog\/adapting-to-big-shifts-in-logistics\/","title":{"rendered":"Adapting to Big Shifts in Logistics"},"content":{"rendered":"

The Professional\u2019s Thoughts on Adapting to Big Changes in The Freight Industry<\/span><\/h2>\n

The logistics industry has recently been shaken by significant changes, with <\/span>major players like YRC (Yellow Corp.) and Convoy shutting down<\/b>, while <\/span>Kindersley has also experienced challenges<\/b>, leading to changes.\u00a0<\/span><\/p>\n

These events underline the volatility and the rapid evolution within the freight market, compelling carriers and clients to adapt swiftly to remain competitive and efficient.\u00a0<\/span><\/p>\n

Here at Freightera, we are closely monitoring these developments and adapting our approach to each lane and shipment, so as to continue providing top-tier service and pricing.<\/b><\/p>\n

How We Got Here<\/span><\/h3>\n

The past few years have seen significant economic shifts, with inflation driving up costs across the board, and that includes logistics. Coupled with a freight recession that has persisted over the past year or two, <\/span>these factors have resulted in fewer shipments and increased operational pressures on carriers.<\/b><\/p>\n

YRC (Yellow Corp.)<\/span><\/h4>\n

A former giant in the industry has recently ceased operations and filed for bankruptcy. This closure is a significant blow to the industry, especially considering <\/span>the company’s nearly century-long history.<\/b> The downfall of Yellow highlights critical vulnerabilities within traditional freight models, particularly those struggling with debt and outdated practices.<\/span><\/p>\n

Convoy<\/span><\/h4>\n

Another major name in logistics, shut down operations despite significant venture capital backing. Convoy’s innovative approach to digital freight brokerage was not enough to sustain its business model, demonstrating that <\/span>even tech-driven startups are not immune to harsh market realities<\/b>, economic pressure, and reduced shipping volume.<\/span><\/p>\n

Kindersley<\/span><\/h4>\n

Kindersley has also undergone significant operational changes. Not as drastic as shutting down, mind you, but they did have to change up their business model a bit and focus solely on the Canadian market. That means that they had to cease their cross-border operations. This move impacts pricing for lanes that Kindersley used to service. Rates may potentially go up as other carriers have to fill in the gap. For Kindersley, this strategic shift could mean a more concentrated focus on domestic logistics solutions. <\/span>We may potentially see improved service quality within Canada<\/b> at the cost of reduced geographical reach.<\/span><\/p>\n

Lessons from Freightera\u2019s Playbook<\/span><\/h3>\n

In contrast, <\/span>Freightera<\/b> has done the opposite and has, in fact, thrived by embracing a digital-first approach. <\/span>Our focus has always been on ease of use, efficiency, and sustainability<\/b>, and it appears that it was the right one. Our platform provides you with access to hundreds of carriers, with competitive rates and lower fuel emissions through more efficient modes of transport.\u00a0<\/span><\/p>\n

This strategy has not only helped us grow by 140% YoY but also allowed us to help our clients find better shipping solutions amid turbulent times in the industry.<\/span><\/p>\n

Adaptability is Key<\/span><\/h3>\n

The stories of YRC, Convoy, and others serve as critical lessons for those in the industry. Adaptability is not just about chasing the newest technology. More than that <\/span>it\u2019s about understanding and predicting the best ways to meet client demands<\/b>. Based on our experience, this means:<\/span><\/p>\n