What Smart Supply Chain Operators Are Watching Right Now

Supply chain operators are currently focused on liability risks and carrier vetting processes, according to John Ferguson, CEO of Pivot Supply Chain Solutions. A recent case involving C.H. Robinson and its $604 million liability verdict has led shippers to prioritize liability exposure over rates. Ferguson noted that jurors determined shared-employee status due to C.H.

Robinson's description of itself as "tracking the driver" through its app. As a result, carriers and drivers should be described as tracked by load, not by person. On the market side, fuel costs are elevated, and capacity remains tight. The tender rejection rate has dipped to around 13%, but then recovered to approximately 14%. The Northeast region, historically a softer market, has seen the highest load-to-truck ratios due to Washington State produce shipments.

Shippers are front-loading pickups, concentrating them Monday through Wednesday, which has led to sharp volume drop-offs on Thursday and Friday. This pattern is likely to continue in early October as shippers move October volume into September. Additionally, more shippers are abandoning annual RFPs in favor of quarterly or monthly bids to adapt to the volatile rate environment while still seeking to recover rates from one to two years ago.

Tighter compliance requirements around carrier vetting have become a competitive advantage for smaller, operator-led brokerages, as larger firms may struggle to provide the same level of detail in carrier vetting discussions with clients.