The logistics sector is facing significant challenges and opportunities in reducing its carbon footprint. With new regulations on the horizon requiring detailed disclosure of greenhouse gas (GHG) emissions as outlined in a recent DC Velocity article, companies are turning to technology solutions to comply with these pending mandates and satisfy their own corporate sustainability requirements.
It is estimated that at least $800 million of freight payments are being double brokered annually. According to the Wall Street Journal, complaints about fraud, including double brokering, jumped 400% in the fourth quarter of 2022 from the same period the year before to the highest level since 2004.
Last week, the Transportation Intermediaries Association (TIA) voiced its concerns to Congress as Jeffrey Tucker, CEO of Tucker Company Worldwide, testified on TIA's behalf, emphasizing the urgent need for the Federal Motor Carrier Safety Administration (FMCSA) to tackle this rampant issue.
In 2024, logistics and supply chain management professionals are seeking more effective ways to reduce costs and mitigate risks when executing shipments. One of the most significant game-changers in this arena is the adoption of advanced shipping software.
This technology, equipped with automated freight bill auditing, AI predictive pricing, multi-mode capabilities, and business intelligence tools, is revolutionizing how companies manage their freight expenses and operations.
The past year has certainly kept us all on our toes with the ups and downs of the industry and the ever-changing landscape of shipping. As we look back on some of the most dynamic changes it’s important to consider how each of them can help you move ahead in 2024.
Costs and efficiency are critical in over-the-road (OTR) shipping. To unlock significant savings opportunities, Shippers, 3PLs and freight brokers are leveraging the power of shipping lane intelligence. It serves as the cornerstone for reducing freight costs by providing a single source of truth, enabling better carrier decisions, leveraging powerful filtering capabilities, negotiating better rates, streamlining analysis, and facilitating data export for informed decision-making.
In recent years, Shippers and 3PLs have been exploring nearshoring opportunities to optimize their supply chains and take advantage of cost-effective solutions. For companies considering Mexico as a nearshoring destination, understanding the intricacies of intra-Mexico and cross-border shipping is crucial.
Shippers and 3PLs need to understand the key best practices to cover regulations, establish carrier connections, manage shipments, account for customs brokerage, weights and measurements, and the unique aspects of shipping in Mexico.
Technology has been a key factor in the growth and strength of the supply chain, with many companies adopting digital solutions to manage their freight more efficiently and effectively. Recent innovations like artificial intelligence (AI) have emerged to improve shipping operations and help Shippers, 3PLs and freight brokers build on their existing technology.
Over the past few years, the supply chain has undergone a rapid transformation. The traditional linear model is giving way to a complex, dynamic ecosystem that requires Shippers and 3PLs to adapt and develop strategic alliances to help differentiate themselves from the competition.
To ensure growth now and in the future, it is crucial for these stakeholders to embrace current and upcoming trends, as well as identify key relationships that will support strategies that align with the evolving supply chain landscape.
As regulations begin to mount for the reduction of carbon emissions in transportation, the logistics industry is facing heightened scrutiny and businesses are seeking solutions within their supply chains.
According to the International Energy Agency, a Paris-based autonomous intergovernmental organization, transportation accounts for 28% of all emissions, with 12% of global emissions attributed to freight and logistics.
“The carbon intensity of [over-the-road] freight is way different than some other types of freight,” said Hayden Pirkle, Account Management Lead at Patch, a platform for negative emissions that integrates with businesses to calculate their carbon footprint and systematically compensates by funding verified carbon removal projects. “It is 100 times more carbon intensive than shipping via cargo ships, which is where the bulk of freight is delivered.”
To address these emissions, government agencies at the state and federal levels have been preparing regulations aimed at the transportation industry, which includes businesses in over-the-road shipping. While many of the rules go into effect in a few years, Shippers and 3PLs need to plan now to get ahead of the changes.
Technology remains vital for the advancement of supply chain organizations. In a recent Gartner survey, 61% of respondents say technology is a source of competitive advantage with many identifying several emerging technologies as important investment areas.
The survey also found that by 2026, more than 75% of commercial supply chain management application vendors will deliver artificial intelligence (AI) and data science.
As the supply chain evolves, industry officials are seeing a multi-faceted approach to advancing the technology behind shipping operations. Artificial intelligence, generative AI, machine learning, digital twinning and understanding how to make better use of internal data are the future of technology in logistics.
