Experts are predicting severe disruptions to supply chains from flooding, power outages and high-wind damage in the aftermath of Hurricane Ian that could significantly impact over-the-road (OTR) freight. They estimate it will take at least nine weeks for shipping to recover based on the amount of damage to both buildings and inventory sustained by Shippers in the affected area.
As peak shipping season 2022 gets well under way, a recent survey conducted by Supply Chain Dive has identified five predictions that Shippers and 3PLs need to understand before implementing solutions to manage the heightened over-the-road (OTR) shipping season. In this blog, we analyze those insights below and offer solutions and best practices for managing any shipping environment.
Expectations for fast, flexible, and reliable shipments are higher than ever and will continue to grow over the next few years. To satisfy growing demand and help streamline the movement of freight, Shippers and 3PLs have turned to technology to provide better visibility and management of their over-the-road (OTR) shipments.
As inflation hits industries across the country, the supply chain continues to see rising costs impact shipping due to current economic conditions. Fuel prices remain elevated and carrier rates continue to rise. According to CNBC, the supply chain is improving and past the worst, but rates will remain well above pre-pandemic levels for the rest of 2022.
Heading into what is typically known as “peak” shipping season, 3PLs and Shippers are seeking ways to counter the rising carrier rates and fuel surcharges. They are finding the best way to do so is to implement or switch to an innovative technology solution that allows them to rate and execute shipments from a single screen.
“If there’s one thing that’s certain in business, it’s uncertainty.” That saying can be applied to the supply chain, especially over the past few years with the unpredictability and disruptions on a global level. As things continue to change and evolve into “peak” shipping season in the U.S., Shippers and 3PLs who manage over-the-road (OTR) shipping continue to struggle to manage the disruptions which have become the new “norm”.
Businesses rely heavily on technology to automate operations, especially in an industry as dynamic as over-the-road (OTR) shipping where system needs, rates and carrier availability change daily. Often that automation carries over into customer service processes, which is helpful for simple FAQs or other questions that can be easily answered online through a chatbot. However, for more complex issues or questions, Shippers and 3PLs need a reliable partner that provides individualized service to cater to their unique needs.
Shippers and 3PLs struggle with the complexities in Local Carrier shipping. In fact, 61% believe that the over-the-road (OTR) mode is the most inefficient part of their supply chain, according to a recent report.
Last Mile and Final Mile are synonymous terms that are used interchangeably in the supply chain to describe the last leg in a shipment’s journey – from distribution hub or warehouse to final delivery destination – yet most shippers struggle with finding a reliable solution.
Shippers and 3PLs continue to pay more in carrier rates and fuel costs for trucking and transportation services, despite a marked drop in truckload spot rates, according to the Journal of Commerce. Reporting on the U.S. producer price indexes (PPI) for trucking in May from the U.S. Bureau of Labor Statistics, Shippers and 3PLs saw month-to-month increases, with the long-distance truckload PPI rising 4.1 percent and the long-distance less-than-truckload (LTL) PPI increasing 3.8 percent from April.
PwC's Global Consumer Insights Survey shows that expectations for fast, flexible, and reliable shipments are higher than ever and will continue to grow over the next few years. To satisfy growing customer demand and help streamline the movement of freight, Shippers and 3PLs have turned to expedited options for their over-the-road (OTR) shipments.
