Well, it is finally here. The day truckers will be able to get the rates they need without the haggling, so shippers need to be prepared. The trifecta of tightening capacity, increased demand and the ongoing surge on e-commerce deliveries has come in and it will pay big benefits for the trucking industry. Adding to the issue further is the increased cost of trucking equipment. Tractor costs are up sharply due to emission and safety standards. Trailer costs are up due to increased material and labor costs. So, buckle up if you’re an LTL shipper. Truckload shippers won’t fare much better.  If that’s not enough, mandatory logging devices are costing large carriers millions of dollars to install and manage. 

Today's dynamic logistics environment demands an ever increasing supply chain efficiency sprouting new strategies, practices, and processes, all of which are designed to meet the requirements of the new digital economy. The "Amazon Effect" has been the major catalyst for the evolution of contemporary supply chain design. The Amazon effect is the ongoing evolution and disruption of the retail market, both online and in physical outlets, resulting from increased e-commerce. The name is an acknowledgement of Amazon's early and continuing domination in online sales, which has driven much of the disruption. We'll highlight just a few new technologies that are being implemented in varying degrees in the next gen supply chain design.

A Trump presidency and a Republican-controlled Congress will bring some changes to the transportation industry. Trump was heavily backed by the trucking industry and they are looking for a return on their investment. Here are some areas where a Trump administration could have an impact, based on the president’s campaign promises.

When Elon Musk recently announced that Tesla would start building electric semi-trucks that would have 500-mile range, and come with a version of Tesla’s Autopilot driving aid, the world realized it wasn’t a matter of if, but when these new trucks would be hitting the highways. The pace of technological innovation is advancing at an exponential rate. With advanced hardware, software and connectivity becoming accessible and cost effective on a global scale, we’re experiencing an innovation shift from desiring “better gadgets” to discovering entire new business categories built around technology.

Years ago, the term "Expedited Service" would send chills down the spine of the accountants, and almost always get someone a good thrashing for whatever went wrong to create the need to call an expedited carrier. As today's supply chain and inventory systems have evolved into a complicated dance of extreme efficiencies and razor thin inventory levels, expedited freight transportation has matured along with them as an integral cog that is the wheel of the 21st century supply chain philosophy. The additional costs of premium transportation can now be justified with the new supply chain savings.

Ok, I'll bite. What is level 5? Ford announced it’s skipping over Level 3 and will put a fleet of Level 4 autonomous vehicles on the road in 2021. Mobileye and Delphi promised Level 4/5 self-drivers by 2019. There's little reason to define levels prior to this point so let's explore what level 3, 4, and 5 autonomous vehicles are.

Last year we wrote about a futuristic high-speed train design capable of speeds in excess of 1000 km per hour.  It is known as the "Hyperloop", the brainchild of Elon Musk, a successful entrepreneur and investor in Hyperloop technology.  On Thursday, Maryland officials gave Mr. Musk’s Boring company permission to dig a 10.1-mile tunnel beneath the state-owned portion of the Baltimore-Washington Parkway, between the Baltimore city line and Maryland state route 175 in Hanover, according to the Baltimore Sun. Musk wants to build two 35-mile tunnels between Baltimore and Washington, DC.  A non-stop trip would take less than 5 minutes.  Transit times like this give new meaning to the term Expedited Service. 

A Harvey and Irma one-two-punch is bound to significantly effect freight movement in the Southeast and potentially the rest of the U.S.  Trucking analysts fear widespread industry disruption as Hurricane Irma slams the Eastern Seaboard, especially since the track is headed for freight distribution centers in Georgia in the coming week.  We may not realize the full impact of fewer available trucks and DC bottlenecks for days or weeks to come.  Most trucks that did get stuck in Florida are likely from somewhere other than Florida since it is such a consumption state.  So that equipment taken out of service could have an affect just about anywhere in the country. 

Freight Transportation in the Gulf Coast area, and as a result, the rest of the U.S., is expected to be experiencing major delays for the coming weeks.  Harvey has left in its wake, flooded roads, downed power lines and hundreds, perhaps thousands, of disabled tractors.  The storm also could generate a rise in long-term trucking contract prices according to a report by analysts at FTR Transportation Intelligence. 

The E-commerce market has provided a boom to the transportation industry. By some estimates, the B2C e-commerce is expected to generate $3.2 trillion in revenue by 2020, while the B2B e-commerce market is expected to be twice that size. In terms of transport revenue, global B2C e-commerce produced $85 billion in 2015, and is expected to grow by a 15% compound annual rate by 2019. That level of demand is going to ad pressure to the already stretched equipment supply. It may be the best time to seek the expertise of a qualified 3PL to help navigate what are sure to be rough waters in terms of equipment availability and supply chain readiness. A 3 PL has multiple resource options to address the myriad of delivery demands that the future of e-commerce is absolutely going to generate.

How Can a 3PL Help with My E-Commerce Fulfillment