When we look back at 2023 at WPG, I am reminded of a quote by Benjamin Franklin: “Change is the only constant in life. One’s ability to adapt to those changes will determine your success in life.”

2023 saw a continuation of the rapidly moving transportation network. From 2022’s rapid influx of freight to 2023’s sudden pull back. We saw change both external and internal in scope. Here are a few reflections along those lines:

External forces:

Shippers and receivers continued struggles with staffing. Cutting hours for loading and unloading. Restricting driver access to docks to observe the offloading of freight. More frequent need for driver assists or lumper services. Purchasing patterns shifting as businesses began working off existing inventories which they had built up due to the longer lead times during the peak of the covid disruption. All of these things impacting deliverability and cost for freight movements.

Continued proliferation of driver retirements, owner operators, who only a year or so early, had gotten their own authorities begin to fail and pull back out. This impacted both truckload and Less-than-Truck carriers. Yellow Corps failure and the fallout from that. All of these will continue to impact the transportation landscape well into 2024 as we see weekly notices about closures and mergers.

Internal Impacts:

We faced our own round of retirements – 3 valued employees moved into the next phase of their life – Carla (42 years), Wendy 24 (years) and Greg (12 years). We celebrated these major milestones and wished them well in whatever this next chapter holds for each one of them. In addition, we had 2 other employees leave for different needs. That amounted to 30% of our workforce. While we have quality people in place today in these roles, as demonstrated by how quickly they have picked up the processes and are actively assisting members. We also are using this opportunity to evaluate our process and look for improvement and efficiencies as we move towards another retirement here in our accounting area in early 2024. Retooled our website with the intent to get more user friendly and allow easier access for our members with fewer clicks, etc. All while making sure system are secure and protected from external forces. Continued enhancements are in works.

Carrier vetting efforts intensified as we continue the push to build a stronger and more robust pool of carriers across a number of different segments. Thereby allowing us to add service offerings while promoting high quality sources.

Many of these events had an impact due to lower freight volumes. As noted in our financials, our freight volumes presented several hurdles. While shipment count was down 11% year over year, tonnage was off by 22%. As a result, our ability to build full, effective loads was more challenging. We appreciate all the members who provided us with a little longer lead times for the deliveries allowing us to plan more efficient loads. Notice on orders that are more time sensitive, is always appreciated as our goal is to make sure freight is delivered on-time, damage free and at reasonable freight pricing. As the team at WPG looks into 2024, we truly want to be a go-to source for your freight movements – shared truckload, LTL or truckload. We would be happy to sit with your logistics, warehousing team and discuss challenges in your specific networks, best routing, and packaging options as we have the mindset to be an extension of your team, not just a transportation source. While the projections for most of 2024’s economic activity isn’t great, all the members can help each other by directing as much freight into our cooperative load planning gaining the efficiencies of volume, density of market penetration and lower costs for all.

WPG is committed to adapting to change and remain a strong partner for all our members. We truly value every one of your contributions to our success.

Thank you,

Tim Metten, President
Wisconsin Paper Group, Inc.