The development trend of the freight industry in the e-commerce market is expanding throughout the world. Accordingly. These freight industry trends are also considered a good idea for other industries, not just transportation. However, it seems to represent a major problem in the freight market.
In addition, there are some shippers looking for ways to keep up with the latest and ever-changing trends in the truck industry. The truth is that they reflect the entire industry. Starting with shippers, logistics providers, truck drivers, etc. In order to market in your industry, you need to take large-scale and extensive steps to become a leader.
For example, consider the following services:
Full truck
Small Package
Last mile delivery
Due to the upcoming trend of the trucking industry, transportation is entering a new era and is likely to become stronger than before.
According to DAT, the shipping industry will maintain a strong momentum this year. Having said that, here are the important trends in your 2018 business plan.
1.Capacity reduction
The freight industry is experiencing low truck supply, but the demand for freight is high. One of the main reasons for this is the shortage of drivers. Every year, older drivers retired and few young drivers take over their positions.
This is mainly due to the difficulties of occupation. In addition to this, there are many factors involved:
Service time (home ownership)
Driving OTR – Crossing the road
Balancing roads and families
Average driver salary
This shortage of drivers means that there are very few trucks transporting goods on the road. Therefore, this will worsen the economy and other industries. It’s like falling from a high altitude – the freight industry is pulling down other industries.
Factors affecting it
Despite the shortage of drivers, another factor affecting the industry is the increase in government regulations. This includes compliance with FMCSA, SAFER, DMV, etc.
In addition to these regulations, there are electronic recording devices (ELDs) that have a large influence on electronic drivers.
According to ELD requirements, each car transport company must install an electronic device on their truck to automatically track service hours.
In addition, the law stipulates that drivers can only drive for 11 hours with 10 hours of rest per day. Prior to licensing, most drivers used manual logs to track their service time, while some larger operators already had ELDs. Most smaller operators complain about ELD, but some issues are related to cost. Others don’t like the fact that someone is tracking them. The rest may be related to the installation process, which is why it is good when someone knows how to install a hardwired device. The purpose of implementing these regulations is to create a safer path. However, they are also perceived by the driver because many people think their truck will leave home.
2. Interest rate rises
Interest rates will rise in 2018 and will continue to rise in 2019. Interest rates are proportional to the tightening of capabilities. Continuing, as freight demand rises, interest rates rise, but mainly supply declines. In other words, the trucking industry has two types of interest rates: spot market rates and contract rates. It should be emphasized that the spot exchange rate is the exchange rate quoted on the spot and is usually used to prepare the goods for transportation.
On the other hand, the contract rate refers to the contract rate locked by the carrier with the shipper’s contract, usually based on a year-long freight volume estimate. Interest rates are expected to stabilize, but as long as capacity is tight, interest rates will continue to rise. The growth rate known as the trucking industry trend may be a huge shift from road transport to rail freight. Due to the nature of the model, multimodal freight is usually cheaper. Due to this problem, some shippers have switched to intermodal transportation in order to reduce the rate of highways.
3. Freight industry trend technology
Every year new technologies enter the world of trucks. Some companies are launching applications to ease the work of the freight industry and drivers. In other words, there are companies that help other trucking businesses by providing on-demand shipping applications.
These applications often help their company by matching their company to the shipper on the market. In this way, they can easily succeed in market share. Increasingly, there are applications with limited geographic uses, however, there is a high growth potential.
In addition, shippers are adopting any solution that will provide them with easy work. In addition, operators are adopting platforms to provide them with higher and faster payments.
Another potential growth is self-driving cars. Some companies use technology to make electric semi-trucks. These trucks usually have a range of 500 miles.
The company is making a reservation, indicating a strong interest in the technology.
By using electric cars, company owners no longer have to pay for fuel. It is worth noting that this is one of the important truck industry trends for transportation companies. Companies often invest in new technologies because they want to show customers how they are responding to the latest trends in the truck industry.
In addition, they do not hesitate to innovate, which may be a new era of trucking.
4. Change behavior
It is strongly pointed out that shippers and carriers need to be flexible in terms of transportation. Some people are changing their behavior to avoid bad situations.
Post time: Jun-28-2019