Whether managing a fleet or operating independently, transportation executives face ever-changing business conditions. Fleet safety is of paramount importance, especially given the trend toward larger liability verdicts and settlements. And finding and retaining quality drivers is often a challenge.
The fleet consulting experts in Marsh’s Transportation Practice — many of whom are transportation industry veterans — know these issues well. Supported by industry-leading data and analytics and predictive modeling tools, they provide insights that help you understand your risk exposures, and the approaches to manage them.
Our services go beyond insurance, to delivering a total risk finance and workforce solution. For example, our proprietary wage-and-hour coverage helps you avoid costly reclassification of independent owner/operators as company employees. Our Marsh Sponsored Programs (MSP) administration platform transfers coverage for property, casualty, comprehensive, and liability policies. We can also help sidestep potential class-action suits by teaming with Mercer, another operating company of Marsh & McLennan Companies, on employment and labor issues.
Marsh can develop an innovative program of alternative risk solutions that helps protect your balance sheet, optimize operations, and increase stability and budget predictability — while minimizing total cost of risk
Transit (Public and Passenger)
The transit (public/passenger) sector of the transportation industry consists of city-owned public transit authorities, suburban/regional fixed-route operators, charter/tour operators, corporate and private shuttle companies, travel agencies, and paratransit services. The transit and ground passenger transportation industry is growing, according to the US Census Bureau. The sector will likely face a cluster of challenges, including changing the perception of the industry’s wages, retention problems, and stagnant advancement opportunities in order to attract a much needed workforce. As a result, workforce solutions are a priority for many transportation companies to address these challenges.
Trucking (Road and Logistics)
The trucking (road and logistics) sector of the transportation industry includes inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory management, supply and demand planning, third-party logistics management, and other support services. Logistics services are involved at all levels in the planning and execution of the movement of goods. Trucking companies can operate either independently or through freight carriers or shipping agents. The vast majority of trucks are single owner/operators that may lease to a carrier or operate under their own authority.
The trucking segment generally includes three categories, truck load (TL), less than truck load (LTL), and intermodal (IM). TL carriers typically drive more than 800 miles per load over five to six days whereas bulk and tank carriers make TL deliveries on a daily basis; LTL drivers typically average less than 250 miles per day. IM, which represents the fastest growing segment of the trucking industry, involves the shipment of goods through a combination of multiple transportation methods such as rail, ocean, and truck. Throughout this IM process, the freight is not handled when changing transportation modes. Freight brokers are responsible for arranging the transport of freight by contracting with independent owner/operators or large trucking companies. Brokers do not have over-the-road operating authority and do not own any equipment. Some large trucking companies may have a separate brokerage operation and may broker loads to their trucking operations in addition to unrelated trucking companies or independent owner-operators. Additionally, freight brokers can work across different modes of transport, including air, rail, ship, and can often include warehouse services. Freight brokers —part of a growing field —arrange for the movement of goods from producers and sellers and allow industries to reduce costs by eliminating dedicated fleets.