Four transport and logistics trends to monitor in USA this year
CarrierDirect, a leading strategic transportation and logistics advisory firm, has released their semi-annual market perspective “Eat or Be Eaten: The Year of Separation in Freight” exploring the trends of the domestic freight industry looking toward the whole of 2015.
The market perspective provides a deep look across the economy from a domestic and global perspective, the state of the freight industry and what lies ahead for innovation in the sector.
Joel Clum, President of CarrierDirect, said: “Despite the fragile global economy, the logistics and trucking segment is growing overall. The industry is being impacted by shifting price strategies, the growth of non-asset 3PLs and ground-breaking innovation in all segments.
“This year, couriers and 3PLs need to solidify sound practices involving technology and create competitive, yet valuable services as the basis of their companies or they won’t be able to contend with the best in the quickly changing marketplace.”
The report, which is released in semi-annual installments, has grown to become one of the most widely read and talked about perspectives on the domestic freight industry, frequently being featured by industry analysts and freight publications. Some of the trends CarrierDirect expects to find in 2015 include:
- Technology and service offerings will continue to support innovation in the global supply chain reducing costs and offering improved reliability to freight movements.
- Dimensional pricing will shift the logistics space since LTL leaders, like UPS Freight, FedEx Freight, have adopted the global perspective to pricing freight services.
- Technology will continue to revolutionise the logistics space. In 2014, nearly $100m in investments reached companies across the globe like Project44, shyp and Cargomatic that are working to streamline shipping through new technologies and web-based services.
- Consolidation in the non-asset 3PL sector will grow larger, full-service brokerages over a previously fragmented marketplace consisting of independent firms with single mode competencies.
CarrierDirect is a leading advisory firm to freight carriers and third-party logistics companies, supporting their efforts to become top enterprises in their space.
To read the full market perspective, visit http://carrierdirect.co/our-perspectives/eat-eaten-year-separation-freight/
Cainiao Network Launches Customer-Centric Logistics
As the logistics division of the Alibaba Group, Cainiao Smart Logistics Network has decided to provide its Southeast Asian customers with unsurpassed service during its annual shopping festival. Based on customer feedback surveys, the company will expand its real-time customer service support and speed up delivery times. ‘By expanding and deepening our services, we aim to provide a stronger logistics infrastructure that can bolster the booming eCommerce sector, support merchants’ expansion into new markets and diversify retail options for consumers’, said Chris Fan, Head of Cross-Border, Singapore, Cainiao Network.
Who Is Cainiao?
According to TIME Magazine, Cainiao ‘is far from a typical logistics firm’. The company controls an open platform that allows it to collaborate with 3,000 logistics partners and 3 million couriers. This means that merchants can choose the least expensive and most efficient shipping options, based on Cainiao’s real-time logistics analytics. The company’s goal is to ship packages anywhere in the world in under 72 hours—and for less than US$3.00.
For countless small business owners around the world, from coffee-growers to textile-weavers, this could change everything. Usually, it costs about US$100 to ship a DHL envelope from Shanghai to London in five days. Cainiao aims to change that. Said its CEO Wan Lin: ‘The biggest barrier to globalisation is logistics’.
What’s Part of the Upgrade?
Throughout the Tmall festival, Cainiao’s logistics upgrade will be divided into four critical segments:
- Real-time customer service support. Cainiao has launched a direct WhatsApp channel for customers to receive logistics updates and ask questions.
- Expansion of air freight parcel size and weight limits. Packages can now be up to 30 kilograms or 1-metre x 1.6 meters to help ship large items such as furniture.
- Daily air and sea freight connections. Shipping frequency will almost double to seven times weekly to maintain resilience and efficiency.
- Compensation for lost or damaged packages. Customers will be reimbursed up to RMB 2,000 (US$311).
Where is the Company Headed?
From June 1st to June 20th, the finale of Tmall, Cainiao will ensure that its customers feel confident in the company’s ability to deliver their packages. Despite global shipping delays due to COVID, the show will go on. Said Fan: ‘This series of customer-centric logistics upgrades reaffirms our goal of pursuing value-added services to enhance customers’ shopping experience while mitigating challenges posed by external factors’.
Furthermore, Cainiao has recently expanded its Southeast Asian operations, achieving revenue growth of 68% year-over-year. In Malaysia, the logistics operation has partnered with BEST Inc. and Yunda; in Singapore, the company has partnered with Roadbull, Park & Parcel, and the Singapore Post. And if its recent measures help retain and grow its customer base, the company will be well-poised to lead the industry in resilient and customer-centric global logistics. ‘COVID-19 made everyone realise how important the logistics infrastructure backbone is’, said Wan. ‘And it gave us a peek at what Cainiao should look like in three years’.