Trending Transportation Updates: February 2017
“Trucking Futures Exchange” Could Launch This Summer: DAT Solutions and Transvix have teamed up to create a futures exchange that will allow trucking companies, 3PL’s, and shippers to better combat spot market rate uncertainty. The Exchange would use a similar process to the New York Mercantile Exchange and the Chicago Board of Trade. Futures contracts will be bought and sold on commodities like fuel, oil, or grain. (Read more: The Interrelated Issues Facing the Trucking Industry)
Market Update: More Than Half of Shippers Look for Alternative Modes
The 2017 Capgemini Third-Party Logistics Study revealed that 3PLs and shippers are moving toward more meaningful relationships, where shippers rely on 3PLs to provide advanced solutions and real competitive advantages. One trend that emerged in the study is the shift from shippers using single-mode providers to using flexible solutions to utilize the most cost-effective method of moving freight.
5 Secrets to Master Supply Chain Visibility
The 3 main goals of supply chain visibility are 1) to reduce business and supply chain threats, 2) to improve performance and service, 3) and to identify inefficiencies and opportunities in the supply chain.
State of the Market: 3PL Relationships Focus on Adding Value
In the past, shippers and their third-party logistics providers stuck to a uniformly transactional relationship. This relationship was one of utility for both parties and lacked any true value or longevity.
Shipper Strategy: Flower Demand and Reefer Rates
Demand for reefers is not only seasonal but regional.Reefer.jpg
In late November 2016, reefer load and truck posts rebounded after the Thanksgiving holiday. Load posts jumped 49%, yielding a 36% increase in the load-to-truck ratio. That’s the highest reefer ratio since March 2015. Then, in January 2017, reefer load posts dropped 9%, compared to December 2016. From January 29 to February 4, DAT Trendlines show that reefer load posts dipped 5%, and the national average reefer rate fell 6 cents to $1.91 per mile to accommodate the loss in demand.
Data-Driven Decisions Rule the Modern Supply Chain
data-driven supply chainShifting capacity, increased shipper demands, and unpredictable disruptions make informed decision-making a top priority for logistics professionals. For shippers trying to optimize the supply chain, efficiency is the number one priority, and analytics drives results.
Can Shippers Beat This Year’s Capacity Crunch?
From 2015 to 2016, freight declined hurriedly, by as much as 15% in the dry van sector. In 2016, freight volume and rates began to rise and shippers had a consistent capacity. Freight demand was strong at the end of 2016; the DAT Freight Index revealed that spot market demand increased for 6 straight months, from June-December 2016. This year, analysts are predicting less capacity, steady freight volume, and rising rates.
Automakers Succeed with Lean and Resilient Supply Chains
The automotive industry has a lot of moving parts and experiences ebb and flows as demand and economic conditions shift. Most US automakers outperformed December expectations, selling 17.55 million new vehicles, ending 2016 on a high note. In 2015, US markets set a sales record of just under 17.5 million vehicles, up 5.7% from the year before.
6 Trending Transportation Updates: January 2017
US Manufacturing Expect Rising Profit in 2017. Manufacturing has expanded at the fastest pace in 2 years, and US manufacturing firms expect to see revenues accelerate 4.6% next year. (: Manufacturing Productivity Generates Focus on Transportation)
Market Update: $3+ Trillion to Keep Up with Infrastructure Repairs
Ports and surface transportation must be able to accommodate the country’s growing population and freight volumes. The US DOT predicts that by 2045, freight volume will increase by 45% and America’s population will grow by 70 million people. America’s infrastructure has an average rating of a D+, ranking 12th worldwide in its health of infrastructure.
