This report originally appeared in the December 2009 issue of DOTmed Business News

When shipping medical equipment or parts that amount to less than 80 lbs, going FedEx, DHL or UPS may still be the best option, but when transporting MRI scanners that weigh several tons or when sending hundreds or even thousands of pieces of equipment overseas, there's a need for professionals known for dealing with larger cargo - logistics specialists, the national or international transport carriers, freight forwarders, and brokers that make it all happen.

Times have been tough on the equipment transport path, especially with less-than-truckload (LTL) volumes and going rates hitting rock bottom the past year due to an ongoing lag in demand and an excess of capacity. Basically what that means is there are a lot of trucks out there and not a whole lot filling them.

"For us, it's all about volume," says Steve Sowers, director of sales for Specialized Transportation, Inc. (STI). "Trucks aren't making money if their wheels aren't rolling. Right now, the whole trucking industry is down, especially LTL - it's been down for a couple of years. By April or May of last year, more trucking companies had gone out of business than all of 2007."

Sowers says when an asset-based trucking company has 100 trucks empty, "everybody sharpens their pencil," and bidding wars are not uncommon. Even titan international carriers like Overland Park, Kan.-based YRC Worldwide have been suffering. YRC, formerly known as Yellow and Roadway, drives about 20 percent of the LTL market, but has had a rough financial track record lately. National shipments were down 40 percent from the previous year and the company has met with net losses of more than $740 million as of third quarter 2009. That's difficult when it trumps the $730 million loss of the previous year.

Improvements up ahead

There may be good news; some analysts foresee shipping volumes increasing as much as 5 percent in 2010 if customers' inventories begin showing expected signs of life.

STI, formerly North American Van Lines, headquartered in Fort Wayne, Ind., is an asset-based transport company and third party logistics provider. National truck freight goes through 32 strategically located distribution centers with a fleet of 1,100 trailers and drivers delivering freight to every zip code in the continental U.S. Among their services, STI offers padded-van air ride LTL or full truckload service and they do exhibitions and display, pulling up an average of 45,000 shipments to tradeshows each year.

More Industry Reports