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Pricing During the Capacity Crunch

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By Adam Miller
Pricing Coordinator

There are two fundamental pressures on freight cost-freight and trucks. Everyone expected an overall decrease in capacity as the number of transportation providers realigned with the amount of freight being shipped. What was not so expected was the magnitude with which this tightening continues and the degree it would affect current pricing. So a lot of people are asking themselves-why is capacity still getting so much worse? The simple answer is that we're still seeing repercussions of the recession play out in the market.

Without getting into the overwhelming details of why the global economy tanked over the last two years, let's suffice to say that freight has gone down. In fact, the American Trucking Association listed the Freight Tonnage Index in June 2009 as below its base level set in 2000. However, overcapacity did not balance itself out as carriers operated at or below costs to stay in business, further driving down prices already depressed from the tumbling economy. At the same time, banks held back from collecting on bad debts from insolvent carriers because there was no market for the used equipment the carriers owed on. This was simply not sustainable, and led thousands of carriers to shut down. Many carriers are still holding on just long enough to close their doors with the arrival of this recent tax season.

But aren't things starting to turn around? Yes, but herein lies the pricing dilemma. Most leading indicators point towards a bottoming out of the economy, and in several areas a small bounce-back. This small increase in freight, combined with decreasing capacity, is resulting in a pricing market more controlled by the carriers than the shippers (as it's been in previous years). Furthermore, since many shippers have already renewed their freight bids and budgeted their transportation costs for 2010, they are now finding themselves unable to find trucks to move their freight, especially at the undervalued rates they tried to lock in for the year.

So where are we now? Pricing as a whole is very erratic as both sides try to find a balance, but is increasing at a surprisingly quick rate in many markets. Carriers are desperately trying to make up for some of the losses they've endured over the last year while the general public is simply not yet spending enough to allow the businesses to afford it. Service failures and price increases are starting to force shippers that had benefited from the price-shopping discounts of last year to once again turn to service-oriented relationships with providers they know they can count on. Pricing is just a starting point for most of our relationships, but it is the service, communication, understanding, and trust that we build on top of it that will keep us all moving towards a brighter future.


Why Ship Intermodal?

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Hello- My name is John Patton, I am Trinity's Intermodal Manager. In light of the ever-present desire to cut logistics costs, shippers are looking to companies like Trinity to offer methods to achieve this goal. One very effective suggestion and service we offer is to move your freight via railways, called "intermodal". In addition to being a more cost-effective method of transporting goods, intermodal services offer many more benefits you may not be aware of.

First of all, the railways offer extra capacity for moving your freight when the over-the-road trucks are tight, or hard to come by. The intermodal industry continues to add new 53ft containers and chassis to their fleets, whereas many trucking firms are being forced out of business due to the economy. With Trinity as your solutions provider, we are able to tap these additional resources to avoid having your product sit on the dock for days waiting for a truck to come available, which may occur in seasonal periods such as during produce season.

In addition to the extra capacity, you will generally see the rail carriers continue to operate in times of inclement weather conditions, while the highway infrastructure is often shut down and thus the over-the-road trucks come to a stand still.

The rail industry has been working hard to reduce carbon emissions into the atmosphere. In fact, all rail carriers have a program in place to support the "green" initiative in the country. An intermodal train will emit 6.8lbs of carbon emissions for every 100 ton miles compared to an over-the-road truck that emits 19.8lbs. That same intermodal train can move one ton of intermodal freight approximately 830 miles on ONE single gallon of diesel fuel! Trinity Transport, as a provider of this service, fully supports the green initiative, and is a member of the EPA SmartWay Transport Partnership that is committed to reducing carbon imprints annually.

Finally, I'd like to touch on the pure convenience of shipping intermodal. Since Trinity works directly with the draymen (local trucking company) when picking up and delivering your freight, Trinity has a lot more flexibility for accommodating your needs. We also have real-time tracking electronically of the your shipment from the time the load begins till the time the load empties.

If you are interested in saving money in your transportation budget, helping the environment by going green, finding an extra source of capacity when trucks are tight, and adding convenience and visibility to your shipments, I invite you to contact us for a rate today. It would be our pleasure to serve you, the Trinity Way!


Help for Haiti-Trinity supports the Haiti Renewal Fund

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Trinity is supporting and promoting the Hoosier Christian Foundation's Haiti Renewal Fund, launched Jan 19th, designed to assist in a fresh renewal of the devastated nation of Haiti.  The Hoosier Christian Foundation is an affiliate of the Alpharetta, GA based National Christian Foundation, founded in 1982. 

The renewal fund began with an initial matching grant of $2 million from active National Christian Foundation givers, Lynn and Foster Friess.  This means that for every dollar you donate, one dollar will be matched up to $2 million, doubling your donation!

We're challenging all of our team members, customers, and motor carriers to become active supporters of this cause.  Trinity Transport is kicking off our collection with $1370 raised, and with the matching fund, that's $2740 so far! Join our efforts, send your checks made payable to the National Christian Foundation (NCF) to: TTI, P.O. Box 1620, Seaford, DE 19973. 

H.R. 4462 was passed into law on Jan 22, 2010.  The legislation accelerates the income tax benefits for charitable cash contributions for the relief of victims of the earthquake in Haiti.

 
 
 
 
 
 
 
 
 
 

Trinity's Float Named Chamber's Choice in Christmas Parade

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On Sunday December 6th, Team Trinity participated in the Seaford Christmas parade. The parade theme was "The Gifts of Christmas" so our float theme paid tribute to the American Trucking Association theme, "Good Stuff Trucks Bring It" with a slight modification to "Good Gifts, Trucks Bring Em!"

 


 

A flatbed was donated by Art Collins Trucking and driven by TDS driver volunteer, Wayne Wroten. The float held a reindeer-drawn sleigh, presents, a hand made fireplace (courtesy of Mr. Gray O'Bier), tree, and Mrs. Claus (Burnice Lankford). Trinity team members and children rode on the flatbed and walked along the side, singing carols and handing out candy. Riding with the float, Michael O'Bier drove the Trinity/TDS mini semi, powered with a go-kart engine.  

Team Trinity & TDS were honored with the Chamber's Choice award.  Congratulations to the float committee for pulling off such a fantastic event with creativity and community spirit. 

 

 

 

Hats off to committee members: Teri O'Bier, Jenni Myers, Kendra Sellers, Christy Gorski, Adam Miller, Elisha Brown, Burnice Lankford, Stephanie Barrall, and Brandy McMullen.  Special thanks to additional float helpers and volunteers: Art Collins Trucking, Wayne Wroten, Darrel Banning, Gray O'Bier, Michael O'Bier, Dustin O'Bier, Megan Lewis, Mr. & Mrs. Jay Zappa, Jeff Banning, Lindsey Banning, Jessica Banning, Jodi Webb, Megan O'Day, Coty Lineweaver, & Robin Hudson.

 

 
 

 

Trinity Appreciates Truckers at TA in Jessup, MD Nov 4th

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In celebration of National Truck Driver Appreciation Week, Trinity Transport spent November 4th camped out in the fuel office in a Jessup, MD TravelCenters of America (TA) truck stop. 

L to R: Ashley C, Driver Francis S. (Dot Transp), Melynda H.Over 300 drivers were personally thanked by our Trinity representatives, Ashley Connolly, Brandy McMullen, and Melynda Hitchens, from 9 a.m. until 3 p.m. Pictured at left is driver Francis (Pee Wee) Saunders of DOT Transportation in Illinois with Ashley and Melynda.

Drivers received reusable travel coolers filled with snacks and handy items like pens and log book rulers.  Snacks were donated by Dole Fresh Fruit (bananas), D&S Factors (Idaho's Spudbars), and Kraft-Nabisco (cookies).   Pens were donated by 1st Guard Corporation

In addition to sponsoring the coolers and rulers, Trinity supplied t-shirts with messaging to "Pat a driver on the back" to pass along the message of the week all year round.  

"This is absolutely amazing," remarked a driver present for the event.  "I've never seen anything like this in my thirty years on the road.  Free gifts, no strings, and someone appreciating truck drivers.  Trinity is to be commended for their participation!"

Special thanks go out to TravelCenters of America for their support of the event.  

 

Happy Truck Driver Appreciation Week

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Trinity Transport, Inc. appreciates America's truck drivers. 
Thanks for keeping America rolling!

We invite you to learn more about the services we offer by visiting our corporate site.  Click on the banner above to read about our quick pay program, truckstop scanning, and available loads.  

Trinity's "Good Stuff" Video, a Tribute to Truckers!

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Trinity officially entered this video in the American Trucking Association's contest for National Truck Driver Appreciation Week.  The video is our take on why the professional truck driver is essential to America.  We had to keep it under 2 mins, and the rules stated it could not be professionally made.

Our team members perform a series of four skits to show our appreciation of truck drivers.  We've fully embraced the American Trucking Association's theme, "Good Stuff. Trucks Bring It!".  Our skits aim to demonstrate that if you consume it, wear it, depend on it, or rely on it, trucks bring it! 

 

Trinity Celebrates Fit-Friendly Award at Annual Heart Walk

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Each year,employees representing the corporate headquarters of Trinity Transport (Seaford, Delaware) form the "Trinity Has Heart" team to support the fight against disability and death from America's No. 1 killer--cardiovascular disease.

Team Trinity 2009

The American Heart Association provides the largest source of non-governmental funding for cardiovascular research in the country. Trinity was named a Fit-Friendly Company for the third straight year for workplace efforts to encourage healthy eating, exercising, and physical activity to promote healthier lifestyles.

The Trinity Foundation donated $13,000 towards this cause. For more information on the American Heart Association's national campaigns please visit www.americanheart.org or www.goredforwomen.org.


Rain Doesn't Dampen Tournament Success

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The 6th Annual "Putt for Life" Golf Tournament was scheduled at Heritage Shores in Bridgeville on August 22nd. Heavy rains prohibited the tournament from commencing, leaving the course too soaked to play.

Despite the rainout, the event succeeding in raising over $22,000 as a charity event for the Trinity Foundation, a non-profit organization founded in 2005 by the employees of Trinity Transport of Seaford. Golfers were given gift bags, door prizes and vouchers for the course and restaurant to play and dine at their convenience.

There were 116 golfers this year and 80 sponsors. Host sponsors included Discover Bank and Trinity Transport. The lunch sponsor was Aljex Software, and the other top level sponsors included Nanticoke Memorial, Management & Training Corporation, Trinity Distribution Services and Trinity Transport's Agent Division. The hole-in-one car sponsor was Pohanka Mercedes Benz of Salisbury, MD.  For a complete list of sponsors, visit www.puttforlife.org/sponsor.

Trinity Foundation Director, Adam Miller, shared his thoughts on the successful event. "Despite the unfortunate weather, we appreciate the good sportsmanship and understanding exhibited during the event.  From the Trinity Foundation and Trinity Transport, thank you for your continued support of this annual fundraiser."

About Trinity Foundation
The Trinity Foundation is a 501 (c)(3) non-profit organization. The Foundation was created in 2005 to give structure to the efforts of the employees of Trinity Transport to give back to the community. Trinity has a long history of volunteer service, and more than 80 volunteers perform community service each year on behalf of the organization.


Trinity Renamed Best in the Business

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Trinity Transport, leading logistics provider, has once again been named in the Top Ten "Best in the Business" of Medium-Sized Employers by the News Journal's annual survey! Forty other Delaware companies, with between 75-249 employees, competed for ranking in this category.  Trinity also made the list in 2007. 

Nearly 15,000 Delaware employees were surveyed by an independent research firm, Workplace Dynamics, to measure six factors.  These included the direction, execution, career, conditions, managers, and pay & benefits.  Responses were kept completely anonymous.

 "I am humbled once again by my fellow team members to be honored with such a distinction.  In business, you always struggle to differentiate yourself from the competitors.  Our team makes it easy to identify this difference, and it is because of them that we enjoy this honor, 'Best in Business'. Congratulations, Team Trinity, and keep it going,'The Trinity Way'." Jeff Banning, President & CEO.

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