Recently, the Transportation Intermediaries Association (TIA) released the 2023 Freight Outlook a Delicate Balancing Act for Shippers, 3PLs, Carriers outlining the path ahead. The annual report addresses expectations for the freight market in 2023 with technology being the biggest trend for moving the industry forward despite a weakened economy and lingering effects of an unstable supply chain.
The top tier of shippers, 3PLs and carriers that move about 95% of LTL freight have advanced technology solutions that include automation and information-sharing capabilities. These leading companies have a competitive advantage and can share data easily, whereas smaller companies with limited technology capabilities have more difficulty with end-to-end automation.
The ever-changing landscape of the transportation industry continues to force shippers and 3PLs alike to, once again, evaluate their processes, efficiencies, and business objectives for the coming year. With little to no relief in sight to help manage the growing supply chain challenges, it’s critical now more than ever to look to technology solutions to help streamline efficiencies and manage costs to combat the most basic of industry challenges… labor shortages and rising costs.
Rising carrier costs directly related to capacity constraints and elevated fuel costs are making it difficult for 3PLs and shippers to control shipping costs. The Journal of Commerce says shippers are preparing for another year of elevated less-than-truckload (LTL) rates and tight capacity, as a 2022 surge in demand from consumers, retailers, and manufacturers looks increasingly likely.
With great challenges comes the opportunity for change and growth. It forces you to think outside the box and deploy new tactics to overcome disruptions. With no end in sight for the current challenges in the supply chain, you may want to take another look at implementing a technology solution that will help you conquer those issues. Technology can enhance your visibility and efficiency while helping to control your freight costs to more effectively manage your shipping needs.
The increase in freight across the US is projected to continue. In fact, it is expected to grow to more than 35 billion tons of freight with a value of at least $37 trillion by 2045, according to the Federal Highway Administration (FHWA). That’s a lot of freight and a lot of revenue up for grabs.
Of course, with this growth and the continued capacity issues, it also means freight rates are on the rise and not projected to come down anytime soon. As such, shippers are looking for ways to decrease freight spend. One way they are doing that is by expanding their less-than-truckload (LTL) shipping. So, how can shippers and 3PLs effectively grow their LTL business in this market?
Logistics technology can help companies improve functionality and allow them to get things done quicker with less human capital. While the benefits of implementing new technology are great, so are the initial costs. That is why it is important to invest in the technology that is right for your company and important to the current LTL industry.
The recent ransomware attack to the Colonial Pipeline was a huge eye-opener for many companies across the transportation industry. It not only showcased how vulnerable companies are – no matter what size they are – but it also showed how a cyber-attack can have far-reaching negative effects.
In most industries, companies have similar goals – and they often boil down to saving time and money and increasing productivity. This is no different in the full truckload shipping sector. Companies are looking for ways to create operational efficiencies while saving money and making their employees’ jobs easier so they can get more done in a day. One of the best ways to accomplish these goals is to automate as many manual processes as possible.
In most industries, companies have similar goals – and they often boil down to saving time and money and increasing productivity. This is no different in the full truckload shipping sector. Companies are looking for ways to create operational efficiencies while saving money and making their employees’ jobs easier so they can get more done in a day. One of the best ways to accomplish these goals is to automate as many manual processes as possible.