Current Status Of Logistics And Freight Industries

The logistics industry today is expanding and evolving with the increasing number of warehousing and distribution services companies are looking for. Shipments are growing while full truckloads are decreasing. Today, logistic companies are putting in their best efforts to deliver more with fewer resources. Here is a detailed overview of the current state of the logistics and freight industry.

Shippers are shifting to less-than-truckload

In the recent years, shippers have been shifting to less-than-truckload and freight consolidation with full truckload in order to reduce the number of trucks on the roads. This change has been seen due to the high fuel costs and regulatory fees that have to be faced by the shippers. They have now understood that a lot can be saved and achieved through less-than-truckload and freight consolidation to improve how products move to diverse places. Customers today are ordering more products online through multiple channels. Purchasing a full truckload will only result in loss for the seller. However, full truckload still plays a vital role for those who need to move large volumes of products across huge distances.

Driver demand is increasing

The number of drivers that are getting products from destination A to destination B is considerably reducing. On the other hand, the number of driving positions is increasing. On an average today, 75 out of 500 trucks lack an adequate number of drivers. It is difficult to bring drivers to you, and it is even more difficult to keep them for longer. It is satisfaction, appreciation and time that play a significant role in deciding whether the drivers stay or leave. To have a successful driver-favourable environment, it is important to reduce drive-times, time spent on waiting for shipment and the stress on the operation. Only these changes will help drivers to stay.

Competition is increasing

The competition between shippers is rising, which is resulting in low prices by making everything accountable to the end users. Since the logistics industry has expanded, the number of third-party logistics providers has risen too. Shippers are now considering the political, environmental and consumer-driven demands of emerging markets. Thus today, shippers are focusing not only on 3PLs but on the best 3PL.

3PL services are expanding

As mentioned above, shippers are focusing on the best 3PL. With cloud-computing capabilities, smaller entities are also influencing the market today. This has increased the competition for larger entities too, having them to focus on how to gain greater profits. While 3PLs are expanding to offer value-added services like use of low energy, connected devices, Internet of Things, and RFID measures, many supply chains are still depending on traditional operations.

We have seen how the logistics industry is significantly growing. The logistics and freight economy is evolving to include unimaginable factors. 3PLs are working towards more productive logistics and freight industries. By understanding the above stated four factors that are affecting the current state of the logistics and freight industry, supply chains will work towards stronger growth achievement in the coming years. Even in today’s conditions, Jayem Logistics stands to be the best International freight forwarder and 5PL service provider in India.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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