Martes, Hulyo 2, 2013

What’s with the Present Truckload Transportation?

The importance of truckload transportation in the field of product distribution in the market is immense nowadays. The transfer of goods from the manufacturers and factories to all the states in the country is a growing concern among companies since the recession hit the market in 2008. Issues like the desire to take freight off the truckload grid and to minimize the number of one-way truck shipments are ideas that companies consider. All of these have been making an issue in the effective transport of goods to meet the needs of the consumers that flock in the market.

Several carriers in the market go bankrupt due to the effect of the recession. Suppliers wait for the economy to boom again to tighten the system in the course of truckload transportation. This would resolve the existing issues of supply chain logistics in the part of manufacturers. The weak economic growth in the past few years has been the main issue in all of the operations in the market as well as with the capacity of the manufacturers to distribute their goods in the market. The scenario can also be compounded if consumers will change their shopping behavior as a response to the changing state in the market and in the economy as a whole.

Fuel is also an entity that most suppliers consider in terms of truckload transportation. Resources in transporting goods are being effectively utilized to cater the needs of the market. Diesel fuel cost has remained flat this year ranging from $3.85 to $4.10 per gallon. With this, suppliers of goods are still uncertain on their ways on truckload transportation as a medium of distributing products. Shippers are looking for ways to decrease their exposure on the rising fuel costs and on fuel surcharges.

Shippers are now finding solutions to these growing concerns in their day-to-day operations. They resort to rail, inter-modal, and dedicated/private fleets. They also make efforts in changing packaging and investing in load optimization software to be able to fit more products to individual case, pallet, and trailer. This would result to fewer truckload shipments that would eventually reduce cost incurred by shippers. This would eventually help any delivery and logistic company in making its operations smooth in terms of reducing the cost burden in its operations. It just has to be on safer grounds for them to take their transactions sustainable for the consumers’ sake.

Trucking remains the most utilized way of transporting a product in the market. ATA American Trucking Trends 2013 report states that trucks moved 9.4 billion tons of freight in 2012, or 68.5% of all domestic shipments. Both figures are up from the previous year. In the year 2012, trucking has able to generate $642.1 billion in gross freight-related revenues, or 80.7% of the nation’s freight bills, also increases in 2011. This data only suggest the immense field of trucking transportation in the country. Shippers and their warehouse logistics need to meet the demands of the market without compromising their own resources and revenues. They still need to deal effectively with issues like fuel cost and the slow growth of the economy.

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