When XPO Buys Conway…Your Fleet Fuel Card Gets Way More Important

Here’s what you can learn about your fleet fuel card program from the news of XPO’s merger with Con-way trucking.

More Companies are Turning to Logistics Operators that Use Their Own Fleets

Case in point is news in the Wall Street Journal:XPO Buys Con-way | Fuelzcard
XPO Logistics is caught in a skirmish with Moody’s Investors after recently acquiring a French trucking company and within months entering a deal to acquire Con-way.

That double-buy hasn’t gone over well with investors. They think XPO is in over it’s head. In fact, Moody’s is set to downgrade their status. The risk is too great, they say, to obtain two giant companies one after the other.

Why Is It Important?

What are the deeper implications for the fleet card users of the world? Why is XPO Logisitcs gunning for large trucking companies?

Consider this statement from their CEO in The Wall Street Journal: “XPO expects to be able to woo large retailers and manufacturers, which prefer companies that operate their own trucking fleets over pure logistics providers.”

You Need to Give Them Wheels

In other words, it’s important for companies to offer more than information. They need to be able to move massive loads – all the time. Retailers and industrial companies require it. Amazon increases demand that will only rise by the year.

And if you can add fleet power to retail and logistics you’re ahead of the curve. You do that by managing your own trucks, or using the trucks of a third party.

  • When you can manage your own fleet – you’re in the position to help world commerce and industry and profit greatly. What if you’re in retail. Imagine if you could add your own fleet.
  • Or, if you use a trucking company to specially move your products, aren’t you going to want to know they’re using the most up to date fleet card that reduces their expenses and lowers your cost as an enterprise customer?

Fleet Cards Help You Save

That’s why picking the right card is essential. Getting real time data and that helps you control your spending is key to operating your own fleet, or being sure that the fleet you hire is giving you the deal you deserve.

Prices are Rising Says Transport Analyst

Prices may be rising if the XPO merger is any indication. Here’s a quote from The Wall Street Journal:

“The acquisition could give XPO more power over pricing, which could translate to higher prices for shippers, particularly if it sparks more consolidation in the transportation industry, said Jeremy Bodenhamer, CEO of ShipHawk Inc., which provides price comparison and other services to shippers.

“‘In certain markets where they have better coverage, and better control, and there’s capacity shortages, you’ll start seeing prices rise,’ he said. ‘And where they need to compete, you may see prices drop to the point where it negatively affects [other] players that can’t afford to operate.’”

A Fleet Fuel Card Program Helps You Take Action

Whatever you can do to increase the power of your fleet fuel card program is going to help in a world with dangerously high and low prices.