It’s important to understand the latest trends in an evolving freight shipping industry to effectively manage the logistics of your transportation business. Because of changes in the economy, expansion of freight shipping by major companies like Amazon, infrastructure challenges, and developing governmental regulations, effective logistics management in the freight shipping industry can be more difficult than ever before. Here are some freight shipping trends that freight shippers, logistics management providers, and others in the transportation industry should pay attention to throughout the year and beyond.
Freight shipping carriers will be focusing on implementing electronic logging devices (ELDs) throughout the rest of 2017, as the deadline for implementing this shipping technology is coming up quickly later this year. New regulations regarding ELDs and freight shipping have spurred other shipping technology updates for some players in the freight shipping industry, as well. ELDs will help to enforce freight shipping compliance once the regulation’s deadline has passed, but it won’t be the last government mandate to drive the freight and logistics industries forward.
Freight shipping has been on the rise at the end of last year, and that trend is still continuing. This means the capacity crunch that the freight shipping industry has been worried about lately will likely get tighter throughout the remainder of the year, making logistics management more difficult for shipping companies. There has also been an increase in less-than-truckload freight shipping at a faster rate than truckload shipments. The potential driver shortage could contribute to these problems.
A lot of shipping technology is coming to the freight shipping industry, and it could be very beneficial for logistics management by providing increased visibility, and accountability. Automation will reduce a lot of labor and transportation costs in the freight shipping business, and it comes in many forms. Robotics, automated sorting, automated trucks, and more will start to become used more in freight transportation, and the Internet of Things will be used in logistics management to enhance visibility.
There will be increases in demand for freight shipping, largely because of driver shortage and capacity concerns, which will lead to higher freight rates. This issue will be most prevalent following the ELD regulations coming in the fall.
Amazon is increasing global freight shipping, and they’re taking matters into their own hands. The freight shipping Amazon is doing now will impact the ocean freight industry. They’re working on shipping over land, air, and sea. Amazon is working to develop freight shipping processes in areas where the demand is not being met effectively.
Requirements for freight shipping driver’s hours-of-service will be a major concern in logistics management and freight operations. This is another area hit by restrictions that will change freight shipping practices. There were fewer regulations in the past, but now breaks and time spent off the road are more strictly enforced. This may make matters worse regarding the driver shortage, as it will mean drivers can’t spend as much time on the road.
Many of the trends in the freight shipping industry this year will be interconnected. Shipping technology and regulations mandating its use, fewer drivers with less freight capacity driving fewer hours, and so on. There is a lot of change coming to the freight shipping industry currently, but it’s not all bad. Freight shipping is still growing, and it’s working to meet the demands on the market in anyway it can. To optimize your supply chain and improve logistics management in the freight industry, being aware of these trends is one of the most effective ways to keep improving your freight business. Transportation management can get tricky sometimes, but having knowledge of freight shipping trends is a good first step toward supply chain optimization.