The American Trucking Association (ATA) recently released a freight transportation forecast, predicting growth through the year 2026. According to Forecast, overall freight tonnage will grow 25.5% from 2013 to 2025 and freight revenues will surge 72%.
The entire freight economy is set to grow. Trucking is predicted to remain the nation’s dominant mode of transportation, according to ATA Senior VP and Chief Economist, Bob Costello. Trucking’s share of freight tonnage will grow from 69.1% in 2013 to 71.4% in 2025. The report also expects truckload carriers to make more use of intermodal rail for immediate- and long-distance hauls, since the rail market is expected to shrink by 2025.
Despite the significant growth predictions and the worsening driver shortage, shippers still expect cost-savings from 3PLs. 3PLs are confident in their ability to meet the expectations of shippers and carriers who now demand a suite of transportation services. 3PLs must continuously adjust to the logistics and economic environment. By delivering value, savings and proficiency, 3PLs are able to provide solutions for customers.
Given the growth predictions, changing customer demands and increasing capabilities of transportation management software, how will shippers keep up?
- Streamline shipping processes and eliminate any inefficiency in the supply chain
- Be carrier-friendly, work hard to meet driver’s requests, and create flexible schedules
- Optimize operations to cut costs and improve inventory, productivity and procedures
- Produce actionable data by integrating a TMS
- Stay informed on industry trends, market updates and transportation news
For shippers who are overwhelmed or have overlooked the requirements of shipping and transportation, outsourcing to a 3PL will take the hassle out of logistics. Strong buying power and an extensive carrier network allows 3PLs to provide competitive rates for freight shipments. 3PLs develop highly specific solutions for multiple verticals, meaning they will have knowledge on the modes, lanes and regulations pertinent to your industry.
Keep Reading: “The Best Way to Drive Consistency in Freight Transportation” to learn how to overcome disruptions and exceed customer expectations.