The transportation industry is experiencing several changes as the businesses take a look at improving the speed and efficiency. The slowing down of the economy in several countries across the world has resulted in the companies to look at their supply chain networks in order to create savings. The existing and future transportation industry trends are details in this blog. Take a look at the blog to understand the truckload transportation trends. If these do not exist now, they are likely to go effective in the near future.
Increased Truckload Rates: Most of the fleets expect to increase their revenue via enhancements with the existing clients. To do so, the companies ensure to focus on their core competencies as well as outsource the product management functions. The transportation companies have become effective at enhancing their income per shipment as it will help in insulting the industry when there is slow economic growth. Eventually, the freight management is believed to grow by around two to four percent on an annual basis while there are innovative ways to enhance the shipping procedures.
Shortage of Labor: As an increase in the demand is expected to take place, it is likely to create a shortage in the labor such as qualified drivers. As a result, the price of the shipping services will increase. Also, the field is facing increased competition from the other services based industries that will reduce the labor pool. The shortage of labor might prevent the growth that is expected to take place in the industry. If the demand for the skilled drivers persists, the higher wages will attract more workers.
Fuel Prices: The instability of crude oil in the international market has driven the price of fuel recently. The increase in the fuel price has paved a way for alternative fuels that are considered attractive by several trucking companies. One such alternative is natural gas as it is a reliable and affordable fuel option. However, it involved a higher upfront price to purchase a truck running on dense natural gas. Though the fuel price is decreased, the freight space is reduced in certain models, and this again increases the expenses.
Bankruptcies: The trucking firms have transformed into efficient companies that operate at stiff profit margins and unstable fuel costs. This industry has witnessed many bankruptcies in the recent years. The increase in fuel prices and the decrease in demand have contributed to the failure of operations during the recession. The banks stiffened the policies of lending, and the fleets were not able to secure the cash that was required for the everyday operations. The emergence of the steadier financial market has paved way for the trucking companies that managed to borrow to invest in their fleets of vehicles.