Carrier Direct Report: What to Expect In Freight for 2014 and beyond
CarrierDirect, a leading strategic advisory firm in the transport and logistics industry, has released its US domestic freight market perspective covering the trends of 2014 and what to expect in the months ahead.
The report which is released every six months, has quickly grown to become a widely read perspective on the US domestic freight industry, frequently being featured by industry analysts and freight publications.
Halfway through 2014, CarrierDirect is seeing strong signs of life in the freight industry following a difficult start to the year due to the Polar Vortex. Strong freight levels in Q2 have challenged many trucking companies to develop new plans to cope with increased demand for their services.
Meanwhile, the pool of qualified drivers has fallen short of demand and the effects from last year’s Federal Motor Carrier Safety Administration (FMCSA) changes have created new hurdles to overcome.
Joel Clum, President of CarrierDirect said: “Despite the challenges we’re really seeing the pendulum swing back into favour of the carrier.
“Carriers are now in a place where they are choosing the shippers and 3PLs they want to do business with based on factors that go outside just the amount of freight they offer, looking more towards profitability and how little stress the customer puts on their operations, people and drivers.”
As economic growth continues to put favour back towards transportation providers, CarrierDirect expects trucking companies to seize the opportunity to invest in new technology and pricing changes.
“We’re standing on the edge of a sweeping reform in technology that will allow carriers to operate more efficiently, particularly in less-than truckload shipments, and price their services according to those they provide.” Clum added.
Some of the trends CarrierDirect expects to play out include:
- Web services-enabled dynamic pricing in the less-than-truckload sector that will allow transport companies like Con-way Freight, UPS Freight, FedEx Freight and others to charge more appropriately for their services based on space taken up by shipments and the needs of their networks
- Privately held logistics companies like Coyote, FreightQuote and Worldwide Express continuing to set the tone for best practices in the freight brokerage industry
- Asset-based trucking companies such as Swift Transportation, Werner and Estes-Express Lines laying the foundation to become leading third-party logistics providers alongside their asset-based divisions
- Emergence of new tech-focused entrants to the domestic freight marketplace who are keen to solve data-intensive problems in the antiquated trucking industry
- Carriers better utilising third-party logistics companies who resell less-than-truckload services, such as an Echo Global Logistics, as a complement to their salesforce rather than a competitor
CarrierDirect is a leading advisory firm to freight carriers and third-party logistics companies. For more information, visit http://carrierdirect.co/our-perspectives/expect-freight-2h14-beyond/
DHL Claim Multi-Sector Collaboration Key to Fighting COVID
Since January, global logistics leader DHL has distributed more than 200 million doses of the COVID vaccine to 120+ countries around the globe. While the US and UK recently rolled out immunisation plans to most citizens, countries with less developed infrastructure still desperately need more doses. In the United Arab Emirates (UAE), which currently has one of the highest per-capita immunisation rates, the government set up storage facilities to cover domestic and international demand. But storage, as we’ve learned, is little help if you can’t transport the goods.
This is where logistics leaders such as DHL make their impact. The company built over 50 new partnerships, bilateral and multilateral, to collaborate with pharmaceutical and private sector firms. With more than 350 DHL centres pressed into service, the group operated 9,000+ flights to ship the vaccine where it needed to go.
With new pandemic knowledge, DHL just released its “Revisiting Pandemic Resilience” white paper, which examined the role of logistics and supply chain companies in handling COVID-19. As Thomas Ellman, Head of Clinical Trials Logistics at DHL, said: “The past one year has highlighted the importance of logistics and supply chain management to manage the pandemic, ensure business continuity and protect public health. It has also shown us that together we are stronger”.
Multisector partnerships, DHL said, enabled rapid, effective vaccine distribution. While international scientists developed a vaccine in record time—five times faster than any other vaccine in history—manufacturers ramped up production and logistics teams rolled out distribution three times faster than expected. When commercial routes faced backups, logistics operators worked with military officers to transport vaccines via helicopters and boats.
In the UAE, the public-private HOPE Consortium distributed billions of COVID-19 doses to its civilians as well as other countries in need by partnering with commercial organisations such as DHL. For the first time, apropo for an unprecedented pandemic, logistics companies made strong connections with public health and government.
“While the race against the virus continues, leveraging the power of such collaborations and data analytics will be key”, said Katja Busch, Chief Commercial Officer DHL and Head of DHL Customer Solutions & Innovation. “We need to remain prepared for high patient and vaccine volumes, maintain logistics infrastructure and capacity, while planning for seasonal fluctuations by providing a stable and well-equipped platform for the years to come”.
How Do We Sustain Immunisation?
By the end of 2021, experts estimate that we need approximately 10 billion doses of vaccines—many of which will be shipped to areas of the world, such as India, South Africa, and Brazil, that lack significant infrastructure. This is perhaps the greatest divide between countries that have rolled out successful immunisation programmes and those that have not. As Busch noted, “the UAE’s significant investments in creating robust air, sea, and land infrastructure facilitated logistics and vaccine distribution, helping us keep supply chains resilient”.
Neither is the novel coronavirus a one-time affair. If predictions hold, COVID will be similar to seasonal colds or the flu: here to stay. When fall comes around each year, governments will need to vaccinate the world as quickly as possible to ensure long-term immunisation against the virus. This time, logistics companies must be better prepared.
Yet global immunisation, year after year, is no small order. To keep reinfection rates low and slow the spread of COVID, governments will likely need 7-9 billion annual doses of the vaccine to meet that mark. And if DHL’s white paper is any judge of success, multi-sector supply chain partnerships will set the gold standard.