CEO Mitch Luciano Contributes to Leadership Panel Examining the State of the Freight Industry
16 Feb 2024
The seemingly never-ending ups and downs of the in the past few years has left many with questions about the future of the freight industry.
What is the biggest roadblock for growth in transportation right now? How will new technology, including AI, impact industry operations? What can be done to bring more stability in the future?
Trailer Bridge CEO Mitch Luciano was recently featured alongside 3 other industry experts in a thought leadership panel for Supply Chain XChange to answer these questions and more. Read below for his insights on where the freight industry is now and how it can achieve future success.
Q: What is the current state of the logistics market in which you serve?
Mitch: We are currently in a tough logistics market with an imbalance of capacity and freight significantly impacting rates. The market is being driven by service – everyone’s rates are pretty much the same, so the differentiator is your commitment to service. It really comes down to how you have shown up for your customers throughout the COVID years. Did you provide excellent service? Do you have a strong relationship with your customer? How you served your customers in the past few years is definitely influencing your success today.
The market is being driven by service—everyone’s rates are pretty much the same, so the differentiator is your commitment to service.
Mitch Luciano
Q: Has recent spending on infrastructure improved supply chains?
Mitch: Infrastructure spending related to roadway improvement is essential. Another area that we’ve seen a direct positive impact from is deep-water ports. Here in Jacksonville, Florida, we’ve experienced this first hand where funding has supported the deepening of our waterway, allowing for more cargo to flow through the ports and creating opportunities for our business.
Q: What is the biggest single factor stifling potential growth in transportation markets?
Mitch: Right now, the biggest single factor impacting growth within our industry – and really in our world in general – are the current interest rates. Our customers aren’t able to get the funding needed to invest in their business because the cost is too high.
Q: Is artificial intelligence impacting your supply chain processes, and if so, how is it being applied?
Mitch: AI is here to stay – how it impacts our industry is still to be seen. We are in the beginning stages of knowing how AI supports our logistics operations. One example we have seen is the ability of the technology to assess where a driver is and then suggest the next load based on their location, driver requirements, hours of availability, etc.
Q: What will it take to return to a more balanced transportation market in 2024?
Mitch: Lower interest rates and domestic oil production.
Read the full article in the January/ February issue of Supply Chain XChange here.
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