The debate over whether density-based pricing will succeed in toppling the traditional National Motor Freight Classification’s (NMFC) based pricing in the LTL industry is an ongoing debate. Carriers are pushing for dimensional pricing to manage the margins on lightweight shipments. This is the basis of the argument. Under the NMFC classification density was taken into consideration as was packaging and commodity but it was largely based upon weight. Back in the day, carriers in a battle over business after deregulation, were offering FAK (Freight All Kinds ) tariffs to get the business. This strategy ultimately led to unprofitable operation ratios, subpar delivery performance and ultimately the bankruptcy of some major carriers. Major national freight carriers in recent years have declared the days of beating up the carrier on rates is over. Unlike in the past, the LTL industry today has a massive volume of smaller shipments. There is also the challenge of completing same-day deliveries or time definite deliveries. Likewise, these shipments are not always of consistent size and density, making it difficult for shippers to sustain adequate profit margins.
Today, if you want dependable service, you’re going to have to pay for it. Let’s see if we can offer a cursory education on dimensional pricing.
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Topics:
Supply Chain Management,
Third Party Logistics,
Intermodal Freight,
Transportation News,
Reducing Freight Rates,
Logistics Business,
3D Printing,
Logistics News,
Technology,
dimensional pricing
Transportation capacity remains on a downward trajectory while prices and utilization are increasing at a steady rate. A heavy flow of inbound containers, as providers try to catch up on depleted inventories and consumers remain active, is driving the demand side. Delays at the ports and on the rails, and a lack of equipment and trucks, is keeping capacity stretched and prices high.
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Topics:
Supply Chain Management,
Third Party Logistics,
Intermodal Freight,
Logistics Business,
Maximizing Routing Efficiencies,
3D Printing,
Logistics News,
Industry Trends,
Technology
3D printing, also known as additive manufacturing, has come a long way since it was first developed in the 1980s. While 3D printing originated as a tool for rapid prototyping, it has now evolved to cover several different technologies. 3-D printing has been an interesting and convenient solution to part replacement planning. Its applications became popular for a quick solution to create small, insignificant plastic replacement parts. The evolution of 3D printing has seen a rapid growth in the number of companies adopting the technology. The applications and use cases vary across industries, but broadly include tooling aids, visual and functional prototypes, and even end-use parts.
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Supply Chain Management,
Intermodal Freight,
Transportation News,
3D Printing,
Industry Trends
Digital transformation is now the overriding priority for most manufacturers and retailers, with the adoption of digital technologies aimed at improving efficiency and effectiveness in the shorter term while providing the opportunity to grow a leaner operational protocol in the future. The focus is definitely on the efficiency of operations relating to technological applications as we enter 2022. The big question is are you ready? If not, perhaps we can help. Here are some interesting predictions from a reputable international research firm, IDC, which highlights key areas of technological applications regarding the impending digital revolution of the international supply chain.
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Supply Chain Management,
Third Party Logistics,
Intermodal Freight,
Transportation News,
Maximizing Routing Efficiencies,
3D Printing,
Logistics News,
Industry Trends,
Technology
As we confidently emerge from the Corona Virus the industry is experiencing a myriad of changes. Since the pandemic, the trucking industry has had to react to unprecedented changes in operational and management procedure. Most everyone in any trucking or logistics company has had to adapt to the new normal. So, what is the new normal today and what can we expect in the coming years. There have been numerous things that have impacted the manner in which the industry has functioned and there have been numerous elements that have changed the way we work within the industry. Let’s examine some trends and try to make some predictions for the future of trucking.
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Topics:
Supply Chain Management,
Third Party Logistics,
Intermodal Freight,
Transportation News,
Reducing Freight Rates,
Logistics Business,
Maximizing Routing Efficiencies,
3D Printing,
Logistics News,
Technology,
Big Data
Supply chain professionals are looking forward to a much-deserved extended weekend during the Fourth of July holiday. However, CargoNet, an industry cargo security firm, reports that extended business closures can create an advantageous operating environment for cargo thieves. For the past five years, the firm has analyzed cargo theft data in the United States and Canada from July 1 to July 7and found 130 cargo theft events in 27 different states, with theft most common in Texas, California, and Florida.
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Topics:
Supply Chain Management,
Third Party Logistics,
Intermodal Freight,
Logistics Business,
Maximizing Routing Efficiencies,
3D Printing,
Logistics News,
Industry Trends,
Technology
There are several factors contributing to the U.S. labor shortage. It has to be considered that generous unemployment compensation, both state and federal, has had a significant affect upon labor availability. It is understandable to invoke a government funded financial support program during a pandemic. But there is debate over the federal extended unemployment benefits.
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Topics:
Supply Chain Management,
Third Party Logistics,
Freight Bill Auditing,
Intermodal Freight,
Reducing Freight Rates,
Logistics Business,
Maximizing Routing Efficiencies,
3D Printing,
Logistics News,
Industry Trends,
Technology,
Big Data
The Corona pandemic has had a profound impact on worldwide commerce and adjusting to the new normal will be critical in your company’s market placement planning. The complexly of the intertwined nature of a global supply chain is sensitive to disruptions in any part of the network. Trauma in one area has a trickle-out affect through the entire network.
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Topics:
Supply Chain Management,
Third Party Logistics,
Freight Bill Auditing,
Intermodal Freight,
Transportation News,
Reducing Freight Rates,
Logistics Business,
Maximizing Routing Efficiencies,
3D Printing,
Logistics News,
Industry Trends,
Technology
The global impact of Covid-19 continues to impact the Logistics industry. Increasing demand and a looming labor shortage is forcing freight rates up and capacity down. Persistent labor shortage, particularly for warehousing and distribution, is slowing supply chain and logistics activities. Regardless of specific mode, the warehousing and distribution environment appears to be a common issue for many freight operators right now.
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Topics:
Supply Chain Management,
Intermodal Freight,
Transportation News,
Reducing Freight Rates,
Maximizing Routing Efficiencies,
3D Printing,
Logistics News,
Industry Trends,
Technology
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