2019 Shipping Freight Trends
2019 Shipping Freight Trends
The shipping industry is transforming. New regulations in effect. Innovative technologies. High demand. Know the 2019 shipping freight trends and be prepared this year.
- ELD is in effect
You certainly have heard about ELD for years. So what’s new? The Electronic Logging Device has now become a must-have, as the regulation is in effect.
That means that if your truckers drive more hours than those allowed, you could be penalized with fines. These fines go against the carriers, truckers, and even the shippers. Something to consider, for sure.
- Autonomous Trucks
You may think that they are far from becoming a reality. But think again. Autonomous trucks have come with bells and whistles.
You probably have heard about them. Lots of coverage these days. Tesla and other manufacturers are working on producing semi-autonomous trucks.
How will ELD regulations apply to semi-autonomous trucks? Definitely, food or fuel for thought.
- The Internet of Things
This is an area in full expansion with significant positive results in the following:
- Predictive Asset Maintenance
- Route Optimization
- Warehouse Optimization
- Shipment Tracking
Cloud-based solutions collect real-time information through sensors to optimize routes and warehouse space and thus reduce cost and streamline operations. As you know, this is not new in the logistics space. Not long ago, all the optimization was done in Excel spreadsheets and took substantial time.
Pretty amazing, right? Nonetheless, more is yet to come.
- Mobile Technology
Yes, you’ve guessed it. There is an app for that. Precisely, mobile technology is a key vehicle to optimize routing. This does not pertain to driving exclusively.
The benefits are enormous when it comes to reducing paperwork. The process automation reduces your drivers’ time at gates and in loading and unloading. This fuels trucking and freight with increasing efficiency.
- Transportation Management Systems
They are a great option for businesses in which shipping plays a fundamental role and paves the road. Before TMS was not a fit for small and medium-sized businesses due to the investment that it implied.
However, this has taken a completely different route and now most businesses have access to TMS. This means active communication with industry experts, an online portal to obtain quotes, organize them, match loads with the right carriers, track shipments and run several reports. Yes, data analytics!
- Trucking Technology
Within the space of trucking technology, you can see the effects of digitalization. You become a witness of business transformation.
Think about the now very popular GPS. This technology has improved time management by making trucking processes faster and more efficient. It has certainly stepped on the pedals to progress.
More recently, the autonomous trucks, covered in #2.
Some surveys indicate that leaders in Logistics don’t consider that they will have a significant impact in the next eight (8) years.
But what are your thoughts?
Drivers wanted and……….badly. The market is on high demand for freight and the supply is very tight. The shortage of drivers is one of the main reasons for this demand-supply imbalance.
Newer generations are not very attracted by what the trucking market has to offer them. Low wages, time away from their families make Millennials not want to become drivers. When older drivers retire, who is going to replace them?
You can see more capacity issues coming and coming at high speed. ELD adds more roadblocks on this already pressing capacity.
- Rates on the Rise
Under these conditions, it is natural that rates are on the rise. This happens when demand exceeds supply. You can find spot market rates and contract rates.
Spot market rates are those for a load that needs to be moved. For instance, you may have a new customer in a location where you have not delivered. In that case, you ask for a spot quote.
Contract rates are negotiated rates based on annual volumes. Nonetheless, due to the current situation, they generally cover up to six months.
- Last Mile Delivery
There is also an increase in demand for last mile deliveries. Before, deliveries used to come from the supplier’s distribution center to the customer’s.
This new trend has propelled the creation of alliances to meet customer’s requirements. Indeed, FedEx and UPS rely on the United States Postal Services for various of their last mile deliveries
- Going the Extra Mile
Despite these challenging trends, it is possible to have worry-free transportation of freight. CargoBarn goes the extra mile for you and your company to make this happen.