Subject: WPG 2024 Performance & 2025 Outlook – What’s Next?
Introduction:
2024 continued to present significant challenges for the transportation sector, and WPG has not been immune. As a result, volume inconsistency and a lack of geographic density for freight deliveries have significantly impacted our service and financial performance. This overview explores key market trends, logistics disruptions, and WPG’s freight strategy for 2025.
Key Market Trends in 2024:
- LTL: The LTL segment experienced significant disruption due to carrier bankruptcies and mergers. Consequently, this consolidation allowed remaining carriers to aggressively pursue pricing adjustments and implement surcharges for unwanted freight (e.g., oversized shipments, remote area deliveries, and density reclassifications). Looking ahead, this trend is expected to continue into 2025, with a potential industry-wide shift towards density-based rating for all freight classes, moving away from the traditional class-based system.
- Truckload: The truckload market continued its two-year struggle with low freight volumes and downward pricing pressure. As a result, there was a significant reduction (1234) in operating carrier authorities in 2024. The competitive landscape intensified, with carriers increasingly pursuing partial truckload opportunities.
- Internal Influences and Improvements: Over the past couple of years, we’ve experienced a 30% turnover in our employee base due to retirements. While this presented a transition, it also provided an opportunity to thoroughly review our processes and procedures. In addition, we’ve explored new technologies to drive out inefficiencies, and this internal review will enhance our long-term operational effectiveness.
Impact on WPG and Our Response:
These external and internal forces have had a direct impact on our ability to provide the level of service and support our members expect. However, despite these challenges, WPG remains committed to investing resources to strengthen our partnerships and enhance our service offerings. As part of these efforts, we are pleased to announce the addition of a full-time Account Executive, Amie Baragwanath, to our team.
The Importance of Volume and Our 2025 Strategy:
Freight volume is crucial to maximizing the benefits WPG offers our members. Higher volumes allow us to:
- Leverage greater buying power.
- Strengthen market penetration.
- Increased utilization of our equipment eliminating empty miles and maximizing trailer space.
- Provide a more consistent delivery service.
2025 Outreach and Collaboration:
To achieve these goals, we need your partnership. In Q1 2025, we will increase our communication efforts through focused marketing and sales initiatives. Amie will be reaching out to schedule brief meetings to:
- Gather your valuable input on your utilization of WPG and areas for improvement.
- Discuss how WPG can provide a better competitive advantage for your business.
Call to Action:
We believe that by working together, we can overcome these challenges and position WPG for continued success. We look forward to connecting with you in Q1 2025. Please watch for communications from Amie to schedule a time to connect.