Blitz Week may be over but carrier capacity issues are not. Just like snowbirds are traveling north from their winter homes, so too is produce moving north. Produce season peaks late spring through mid-summer. Drivers are paid a premium to transport that produce which drives up rates as a whole and tightens carrier capacity.
Summer means a lot of things – pools open, epic movies release, and gas prices skyrocket. Year after year as temperatures rise, so do gas prices and, for shippers, that means a rise in logistical expenditures. The cost of fuel to get goods from origin to destination is a constant variable that must be considered when assessing the total bill.
Working in the world of professional logistics, coordinating the transport of goods from one place to another, and making sure that the planes, trains, trucks, and automobiles are timely is no small task. For many, the closest they come to logistics is refreshing the Amazon app to check the status of their most recent order. There are so many moving parts that must be taken into account that it’s no wonder the phrase ‘logistical nightmare’ is commonplace.
Every year the Department of Transportation has something known in the logistics and trucking industries as Blitz Week, officially known as the Commercial Vehicle Safety Administration International Roadcheck. It is a 72 hour crackdown on trucks at inspection/weigh stations and by police officers to ensure truckers are meeting vehicle maintenance and driver compliance practices.
If your company is struggling to find trucks for your drivers- you’re not the only one. Used truck volumes at auction have dropped 82% while truck prices have doubled in the last year. In June 2020, the two largest auction houses reported over 1,000 used trucks to hit auction compared to this year’s 192, according to JD power reports. This is a straight reflection of the market’s overall health.
We understand that CO2 emissions might not be at the forefront of your logistics priorities. However, shipping costs will eventually be impacted by the European Union's plan to curb emissions, so your company may want to start to track its Co2 footprint.
It is important that your company is using the most cost-friendly and efficient shipping strategies. Zone skipping is a technique whereby the shipper consolidates individual packages into TL or LTL and is transported together to the destination region. Zone skipping works for companies that have a high density of packages to a particular area, city or set of zip codes.
It is easy to determine what 3PL you should choose based on the obvious: years of experience, IT attributes, rates, popularity, etc. But, what you should take a deeper look into is the culture of the company. Culture in the work environment is pivotal to the day-to-day performance of employees and the overall functionality of the businesses.
So, what are some important values and traits a 3PL should instill?
We are halfway through 2021 and the global supply chain disruptions of 2020 are continuing to pose issues in the freight industry. Soaring e-commerce demand, ocean shipping instability, and motor freight capacity limits put your transportation cost control at risk.
Businesses, especially those on the logistics front, have been experiencing the long-lasting effects of the global economic shutdown firsthand. Freight costs are up across the board. FTL is double what it was pre covid, ocean and air freight are 5 times more than it was.. and it’s not looking like it will subside until Q4.