Category Archives: Trucking

Trucking costs rise as US freight traffic grows – but the momentum is slowing

Posted on October 21, 2021 by | Leave a comment

Recent data show that trucking costs are still rising, but not as fast as before.

One interesting fact is the decline in Midwest trucking volume. Auto makers have cut production by 30%, and the Midwest is struggling economically. This means less demand for trucking services.

But overall, truckload shipment volumes were still up slightly, continuing the trend.

This article has some nice numbers which define the trend. It would be nice to see a graph of the history of some of the numbers, like the average fuel charges. These are surcharges for fuel that trucking companies add to freight invoices because diesel fuel is elevated in price beyond some ‘norm’ they have decided they ought to pay.

By Ian Putzger in Toronto 21/10/2021

Trucking costs rise as US freight traffic grows – but the momentum is slowing – The Loadstar

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Amazon blinks as transport costs surge and pushes use of collection points

Posted on October 15, 2021 by | 1 comment

The last mile is problematic for customer delivery. Amazon’s enthusiasm for ever faster delivery is causing some pain for the company. Maybe it’s the driver shortage?

The Amazon lockers, or collection points, are one way of reducing pain. The customer needs to do the last mile, and there is only one stop for the delivery van. Offering an inducement to use one is one way to get customers to try them. It might work for customers who are out and about every day, and probably drive by one. For stay-at-homes, especially during the pndemic, maybe not.

There’s no easy solution for last-mile delivery.

By Ian Putzger, Americas correspondent 15/10/2021

Amazon blinks as transport costs surge and pushes use of collection points – The Loadstar

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Shippers face tough choices in the US trucking market as costs escalate

Posted on September 23, 2021 by | Leave a comment

It’s a good time for larger shippers to consider a dedicated fleet, according to this consultant. The driver shortage and inability for carriers and 3PLs to offer good schedules are making it hard to book a good service. It certainly throws cold water on trying to forge a long term (say, annual) contract with a carrier.

There are roadblocks in forming a dedicated fleet, too. Trucks are in short supply, due to the chip shortage among other things. and if you don’t have trucking logistics specialists now, you have to set up a whole logistics department, with knowledgeable dispatchers and logistics managers. Not all firms will be able to pull that off. So there are pluses and minuses for a dedicated fleet.

I think firms need to think strategically and decide where they need to be with their customers five or more years in the future. Then once a strategy is chosen, they need to commit the resources and money they need to get the new strategy up and running in a measurable way, so they can be sure service to customers is really improved, and economically for the firm.

By Ian Putzger, Americas correspondent 23/09/2021

Shippers face tough choices in the US trucking market as costs escalate – The Loadstar

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