At IMC Companies we asked our team to share their wisdom on lessons learned from the COVID-19 pandemic. Their comments are so true: Stay calm in the face of adversity, honor and value your relationships, be prepared to pivot and adjust your thinking, and — the message from our chairman — believe in international trade!
IMC Companies is the largest drayage provider in the United States, and moving through the pandemic we realized our customers needed more from us. Our shippers had a drastic surge in capacity needs, and so we responded with technology enhancements targeting driver recruitment and retention through faster pay and optimization of loads. Moving forward, IMC’s ongoing growth in driver capacity, coupled with our growth objectives through acquisition, will bring great value to the United States supply chain. Our coast-to-coast storage and terminals will offer shippers critically needed storage options through peak season and surges, shielding our shippers from heavy detention and demurrage charges. Our privately owned chassis in key markets that allow choice will continue to provide relief in times of shortage. IMC Companies’ expedited services will deliver an inland service to customers seeking value in transit and priority delivery. Most importantly, we offer continued confidence to our shippers that when the supply chain is disrupted, IMC Companies works creatively to find solutions that keep goods moving.
Capacity through first quarter 2021 is projected to be tight. Shippers should be working with their valued supply chain partners and offering solid forecasts to ensure priority and capacity are in place. Market conditions for motor carriers should take into consideration the value of the driver, drivers’ wait time factors at our port terminals and rail hubs, the overall shortage of drivers, and capacity surges. Contracted freight will be prioritized, and rates should fairly reflect the market conditions.
I believe annual contracting offers both shipper and service provider a solid foundation and a stronger relationship. But shipper volume commitments should have reasonable contracting provisions that do not hold the service provider hostage to a contract that is not mutually beneficial in good times and in bad. If the deal seems too good to be true, then it is indeed too good to be true. Someone is getting squeezed, and the extra dollar saved will come back to haunt you when your freight is left on the docks. Transportation service providers seek relationships that offer steady volumes, growth opportunity, and fair margins.
The biggest challenge the container shipping industry faces in 2021 is the continued uncertainty in the market. The timing and distribution of a long-awaited vaccine, consumer spending, alternative sourcing of goods, and capacity consolidation by our ocean carriers are all challenges that we face as we enter 2021.