There are strong signs of life in the freight industry following a difficult start to the year due to the Polar Vortex, according to CarrierDirect, which has just released its semiannual domestic freight market perspective.
E-commerce and globalization have changed the parcel delivery industry forever. However, while parcel volumes keep increasing so does the price of fuel, competition and pressure to reduce inner-city congestion.
Total U.S. business logistics costs in 2013 rose to $1.39tr, a 2.3 percent increase from the previous year, according to the 25th Annual "State of Logistics Report" released by the Council of Supply Chain Management Professionals and presented by Penske Logistics, at a press conference at the National Press Club in Washington, D.C. Logistics as a percent of U.S. gross domestic product declined for the second year in a row, indicating that the logistics sector is not keeping pace with the growth in the overall economy.
Capacity pressure eased during the week ending June 14 as spot truckload freight availability dipped 0.7 percent and the number of available trucks increased 12 percent, according to DAT Solutions, which operates the DAT network of load boards.
Spot market freight availability as measured by the DAT North American Freight Index has run high since July 2013 due to factors including extraordinary weather events, regulatory changes and driver shortages. May 2014 extends the trend, becoming the eleventh consecutive month to post a year-over-year record high, a 40 percent increase over last May. Month over month, however, May freight volumes declined 2.1 percent compared to April.
The lower cost of fuel for natural gas-powered highway tractors compared to their diesel-fired brethren could make it more profitable for trucking companies to engage in longer lengths of haul for intermodal shipments.
Results published by the Canadian General Freight Index (CGFI) indicate that the total cost of ground transportation for Canadian shippers increased by 0.75 percent in February when compared with January results.
Consumer goods suppliers can save millions of dollars by evaluating and improving direct store delivery (DSD) operations — the way that products are ordered, sold, delivered and merchandised — according to a report from Honeywell.
Shipment volume and total freight payments continued to climb in March, ending the first quarter of the year on a high note. Bad weather continued to plague many parts of the country, but transportation seemed to be less affected than in January and February.