Increasing carrier insurance costs in combination with large “nuclear verdict” penalties have played a huge part in the abnormal amount of recent carrier bankruptcies. And, as more juries are awarding these types of verdicts, even some insurance companies are also being forced out of the industry. The extent of this legal issue and the resulting rise in insurance rates are posing a major threat to many trucking and shipper businesses.
One of the most difficult issues shippers who operate their own fleet and most logistics companies today face is the persisting lack of available drivers. As a result of this labor shortage, companies have to shell out more cash to keep up with growing demand and ensure their products are moving on time. To effectively manage these tight job market conditions, shippers of all types and sizes need to understand why this phenomenon is occurring in addition to the impact it has on their business – regardless of how they handle their transportation requirements.
While the truckload spot market is still showing record high spikes, things seem to be winding down a little, at least for right now. This brief calm could not have come at a better time for those trying to recover from the last few months' volatile price hikes. Given that this trend could lead to huge increases in next year’s contract truckload rates, shippers should start preparing their budgets now.
With everything the logistics industry has been through in the past year, many of us are left wondering — what’s next? The current disruption from technology and other changes that are sweeping the transportation sector, however, marks only the beginning of what’s to come. And, despite its destructive impact, COVID-19 merely sped up the process by forcing companies to adapt at a much quicker rate than anyone was previously expecting.
Part 3 of a 3 part series of posts inspired by the 31st Annual State of Logistics Report
There’s a lot of data out there showing how improving efficiency can help shippers and logistics companies increase their profit margins and ultimately reach new heights of success. With the right technology, businesses can track shipments as they move through each step of the transportation process.
Recently the Council of Supply Chain Management Professionals (CSCMP) released their 31st Annual State of Logistics Report. This thorough industry analysis featured 63 pages of detailed information that dove into the logistics of 2019 and 2020 and offered valuable insight framing the industry’s future. As the group explored the devastating effects of the COVID-19 pandemic and examined the pros and cons of various leading players’ responses, it painted an image of tried-and-true resiliency.
According to a recent article published by Food Logistics, consumer demand for functional beverages, which provide additional energy or nutritional value for individuals, is skyrocketing due to current health trends and as a market response to COVID-19.
Our country is living in strange times, and it’s impacting how most industries operate. For some companies, the demand for their products and services have disappeared very quickly, such as travel-related businesses like airlines. In others, companies and employees are working harder than ever, such as in the healthcare space. And for certain manufacturers, it’s temporarily changing what they do, which will eventually impact shippers.
Topics: Industry News