If you're wondering what's up with this digitization thing, you're not alone. The transformation is impacting virtually every industry, including shipping. We're seeing changes that will not only impact our current situation, but long into the future. One change that is here to stay is the trend towards ship-to-home options. Here's a quick look at how this trend is helping drive LTL growth in the market.
It's no secret that trucking costs are rising, but there are several factors causing the increases. The biggest ones are fuel, labor, pay, equipment, and healthcare, all of which have seen jumps in recent years. Because all of these areas are climbing when it comes to costs, some companies are really struggling to stay afloat. It's hurting businesses, the trucking industry as a whole, and the people who rely on having their goods shipped across the city or across the country. No matter how far a truck needs to travel, it has to be cost effective for it to do so or it won't be going anywhere.
The American Trucking Association (ATA) recently released its projections for the industry, stating it to be strong for at least the next 18 months. The chief economist at the ATA, Bob Costello, noted that three major factors have come together to provide a solid future for the freight industry: strong online sales growth, low unemployment and booming housing starts. In fact, Costello told a group of investors via a conference call that not since 2010, when the country was recovering from the recession, have these factors come together to provide a concrete environment.
Have you ever gone to the supermarket and wondered why they don’t sell half a loaf of bread? While many freeze the other half, others simply throw it away. Sounds like a waste of money right? Or when was the last time you purchased a single banana at the supermarket as opposed to a bunch, only to end up tossing them in the garbage? In fact, according to the documentary, Wasted! The Story of Food Waste, an average American family throws away nearly $1,500 of food each year!
The good news is that incidents of cargo theft are going down. The bad news is that the trucking industry can't afford to let its guard down. With the holiday season in full swing, it's a prime time for criminals to get bold about targeting trucks with prized cargo that can be easily sold or distributed quickly and discreetly.
Natural disasters, driver shortage, a growing economy, higher input costs, increasing pay for qualified drivers…all factors contributing to the highest spot quotes the industry has seen in over two years with van rates on the truckload spot quote market reaching a national average of $1.94 per mile and reefer rates increasing from $2.19 to $2.22 per mile week-over-week, according to DAT Trendlines.