The freight industry of today is evolving quickly. The traditional constraints of the economy no longer bind it, and Amazon is gearing up to begin growing to be the best of the global freight shipping providers. As a result, your company requires you to think about these freight shipping trends and how you can plan to respond to them as soon as possible.
- Freight Shippers Will Focus on Implementation of ELD
The official deadline for implementing electronic logging means less than one year away, more freight transportation providers will be upgrading technology and operations in 2017, reports Matt Sullivan. This will help ensure maximum agreement once the deadline passes, but additional mandates will push the industry forward.
- Service Hours Will go Core to Freight Operations
Meeting the HOS (hours-of-service) requirements for drivers will be a crucial concern among freight shipping providers this year.
- Capacity Demand Will Increase
Capacity is required to grow tighter and more important in the advancing year. In the latter half of 2016, freight demand increased consecutively, asserts Mark Montague of Supply Chain Brief. Furthermore, LTL (less-than-truckload ) shipments increased faster than FT (full truckload).
- Freight Rates Will grow
The factors will add to an increase in freight rates as well. Reduced capacity and increased demand will also weigh heavily on the industry, but the most significant impact will be felt in fall 2017, following the ELD mandate. But, a few other influences will still affect the industry. For better transportation, Tata Ace is the best option, and it gives durability.
- New Administration Will Stimulus Freight Growth
The pro-business attitude of the new administration, reports Sean Kicarr of FleetOwner, will act as a motive among freight shipping providers. In other words, more production jobs will return to the U.S., which will place added stress on freight shippers to hire more truckers and invest in a fleet. Finally, the new administration is poised to expand freight spending and accountability over 2017 and beyond.
- Ocean Freight Will See the Amazon effect
Amazon entered the global ocean shipping market as international shipping competitors could not keep up with the online retailer’s surging demand for faster, cheaper freight shipping. In addition, Amazon now has its NVOCC (non-vessel-owning common carrier) license, which will allow the company to operate in shipping international vessels.
Moreover, Amazon also has expanded its dedicated aircraft for faster global and regional delivery. In other words, the company is using advances in its freight shipping processes to meet the demand where carriers and local shippers cannot.
- Dynamic Pricing Will Grown Common
Application Program Interfaces will give weight trucking providers an advantage in having rates lower. Moreover, Application Program Interfaces will automate all data transfers between carriers, shippers, freight brokers, receivers, and transportation management systems, making rate changes and selection easier across the board, states FleetOwner.
- Freight Visibility and Accountability will be Increased by Automation
Robotics, virtual presence and automated picking and packaging methods will reduce labour and transportation costs for the industry. But, of course, Automation begets Automation. In other words, the IIoT ( Industrial Internet of Things) will be needed to enable Automation, which will result in better visibility and responsibility across an organization.
Moreover, guests will be able to return to problematic weather conditions, cyber security threats and interruptions in communication faster through the IIoT and automated systems. Additionally, autonomous trucks (self-driving trucks) will also reduce the labour market while growing demand for the IIoT.
- Freight Shippers May Respond Faster to Instructional AffairsThan Politicians
The next wave of transportation workers will need to have an intricate understanding of mathematics, computer programming, and robotics. However, the current political climate continues to push an agenda based on college degrees as a source of education. Unluckily, the increasing focus on domestic spending is starting to impact learner loan programs and grants.
Consequently, hitting roadblocks to attaining an education with the skills necessary to enter the increasingly automated, advanced freight industry. So, more companies will begin offering tuition compensation programs or educational programs to encourage potential applicants to work for their company. While this represents an improved hiring cost, it will help workers gain a sense of loyalty and drive labour advantage in the industry.
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