In an erratic trucking market, small carriers face numerous challenges—from fluctuating rates to driver shortages. In a fall episode of the Driving Forward podcast, Nate Johnson from GLCS brought together leaders from Garner Trucking, McDonough Trucklines, and Shefland Trucking, and to discuss strategies for not only surviving but thriving in a challenging market. Since then, the industry has seen growing debate on whether the freight recession is over. Some have declared it finished, while others remain skeptical, predicting a slower recovery.

Here are some key takeaways from their insightful conversation:

1. Build Strong Relationships

One recurring theme was the importance of customer relationships. Tim Chrulski, COO of Garner Trucking, emphasized that maintaining healthy customer relationships is vital in both good times and bad. “Taking care of your customer, regardless of market conditions, lends itself to sustainability,” he said. During economic downturns, a loyal customer base can be a lifeline. By focusing on providing consistent value, even when times are tough, carriers can solidify their place in the market.

Mike McDonough, COO of McDonough Trucklines, echoed this sentiment, highlighting the importance of fostering trust with customers over time. “Resist the urge to make all your money back in a few transactions,” he advised. Building long-term partnerships requires patience and integrity, even when spot market rates are volatile.

2. Know Your Costs Inside and Out

For small carriers, understanding the true costs of running a business is crucial, especially in today’s uncertain rate environment. “You really need to know and understand what it costs to operate your equipment,” Chrulski said. This knowledge allows carriers to make informed decisions, whether it's accepting a load or determining where to cut costs without sacrificing quality.

McDonough added that many small carriers struggle because they get consumed by the day-to-day operations and don’t have time to step back and assess their business. Investing time in understanding your operating costs, overhead, and burn rates can make the difference between surviving and being overwhelmed by market challenges.

3. Leverage Technology

Another key point discussed was the role of technology in streamlining operations and reducing costs. Nik Hovde, General Manager of Shefland Trucking, stressed the importance of having an effective Transportation Management System (TMS). “We’ve streamlined billing and dispatch with our TMS, allowing our small team to handle multiple roles efficiently,” he explained. For smaller carriers, investing in tools that automate back-office tasks can free up valuable time to focus on operations and customer relationships.

Chrulski mentioned that Garner Trucking recently made large investments in communication systems for their trucks, making drivers’ lives easier and improving overall efficiency. He also pointed out that even small steps, like adopting sales software to manage leads and relationships, can make a big difference.

4. Focus on Driver Retention

Retaining drivers during tough times is another challenge that small carriers face. According to McDonough, older drivers are considering leaving the industry, which exacerbates the driver shortage issue. “As work gets harder, some of our older drivers are thinking, ‘Maybe I don’t want to do this anymore,’” he said.

Hovde agreed, noting that attracting and retaining drivers in the current climate requires not just offering competitive wages but fostering a positive work environment. Building a strong company culture that values drivers can help reduce turnover and attract new talent.

5. Diversify and Adapt

While sticking to core values and services is crucial, the panel encouraged small carriers to look for opportunities to diversify their offerings. Garner Trucking, for example, has expanded into warehousing and third-party logistics (3PL) services. Chrulski noted, “We’ve taken a hard look at diversifying our business to supplement our core trucking operations.”

Hovde shared a similar sentiment, stating that small carriers need to be flexible and prepared to adjust their operations in response to market conditions. Whether it’s investing in technology, retooling operations, or exploring new service lines, adaptability is key to surviving economic turbulence.

6. Prepare for the Long Haul

All three guests agreed that while the market is tough, there is light at the end of the tunnel. However, they cautioned that recovery may not come quickly. Hovde predicted that it could be another year before the market fully rebounds. “It’s going to take time, but we need to prepare ourselves and make sure we’re operating efficiently so that when the market turns, we’re ready,” he said.

McDonough concluded the discussion by reminding small carriers that trucking has always been about weathering the ups and downs. “It’s got to suck before it gets better,” he said, offering a blunt yet accurate assessment of the situation. By focusing on relationships, operational efficiency, and innovation, small carriers can not only survive but emerge stronger when the market improves.

Final Thoughts

Since the podcast in late September, industry opinions on recovery remain mixed. While some see signs of improvement, others believe it will take more time for the market to stabilize. By following these insights from industry leaders, small carriers can stay resilient and navigate the complexities of today’s trucking environment. Whether through investing in relationships, understanding costs, or embracing new technologies, there are actionable steps every carrier can take to improve their chances of success.

If you are a trucking company struggling to identify what steps to take to improve your business, reach out to GLCS. We can help evaluate your technology, processes, and operations and guide you on where to focus your efforts to achieve success.

To hear more insights, watch the full podcast on our Driving Forward YouTube Channel.