Wednesday, March 16, 2016

Oops, we need to pay car haulers more money.

OK this news article from Automotive Logistics made me laugh out loud.  In Europe, apparently there is a real problem in outbound logistics, because there aren't enough trucks to haul the freight.  "Why is that," you ask?  Apparently, the automakers negotiated rates so low, and so many trucking companies went out of business, there were fewer companies willing to invest in the assets to provide transport service.

Imagine that!  If you want someone to provide a service, you have to pay enough that they not only will NOT go out of business, they will actually MAKE MONEY.  If an industry is deemed to be unprofitable, fewer companies want to invest in it.

If you'd like to read the original article, click here.

1 comment:

Courtney Sia said...

This might be called last man standing battle of price the one who stand firm will take the highest possible profit in the future.