Why shippers should work with smaller carriers in 2024

What separates a good carrier from a great one when costs are the same? According to Emmanuel Carrillo, the answer has a lot to do with cutting-edge technology that fosters clear communication and transparency.

As CEO of California-based Talon Logistics, it’s a message Carrillo lives by. It’s also at the core of Talon’s strategy as the company moves toward 2024. This year has been brutal for carriers of all sizes, but particularly for smaller ones that don’t have the scale of enterprise fleets. 

So Carrillo’s team has positioned Talon, which specializes in drayage, OTR and intermodal transportation, as a home for shippers looking to simplify relationships with carrier representatives while also diversifying load distributions across modes.

He spoke with Dooner on What the Truck?!? about these strategies and a just-published Talon-FreightWaves white paper called “How Shippers Should Be Thinking About Freight in 2024.”

From dispatcher to CEO: Lessons in equality and transparency

Carrillo started in freight as a night dispatcher, a role far removed from the executive suite. His path to becoming the CEO of Talon Logistics is a narrative of ambition, adaptability and humility. 

Central to Carrillo’s leadership philosophy is a steadfast commitment to across-the-board respect, regardless of role. 

“You treat everyone as equals,” he said. “I tell everyone in our organization, ‘Be kind, be transparent. Put your head down and do your best.’”

His story is more than a personal triumph; it’s a road map for others in the logistics industry. Carrillo’s experience exemplifies how adhering to core values can pave the way for success.

Carrillo also highlighted the significance of clear communication in sustaining robust logistics partnerships. This focus is crucial for maintaining efficient and reliable business interactions, the latter of which shippers reported as being the most important aspect to consider when choosing a shipping method.

The white paper recommends that shippers consider moving to a logistics provider that operates with a single point of contact strategy. This idea can streamline logistics operations and is essential in strengthening carrier relationships.

Diversification will be key in 2024

With 2024 expected by many to see a swing in pricing power back in carriers’ favor, Carrillo emphasized the need for shippers to diversify their logistics networks. 

This aligns with the white paper’s findings, which reveal a heavy reliance on over-the-road trucking, used by 87% of survey participants. Carrillo warns against overdependence on one method and advocates for exploring efficient and sustainable options like intermodal shipping.

Carrillo expects to see a market uptick by Q2 or Q3 of the next year but cautioned that it wouldn’t feel anything like the COVID-era boom. In fact, he said, a return to pre-COVID normalcy might not happen until as late as 2026. This perspective adds depth to the white paper’s conclusion that emphasizes a gradual shift toward sustainable practices and investments in technology.

FreightTech and environmental considerations

The white paper and Carrillo both highlighted the increasing focus on technology and environmental considerations in logistics. 

“For smaller carriers, we need to innovate creatively,” Carrillo said, pointing to the need for proactive strategies in an increasingly competitive market.

Shippers might not currently place much weight on how sustainable their carrier partners are, but that’s likely to be a more important factor in years to come.

It’s not an easy (or always feasible) decision for smaller carriers to invest in their businesses during down markets. But as the freight cycle shows again and again, the companies most likely to survive a recession are those that planned for it when the market was still hot.

More likely than not, the companies that most excel when the market turns next will be the ones planning for it now.

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Source: freightwaves - Why shippers should work with smaller carriers in 2024
Editor: FreightWaves Staff