Tag Archives: freight transportation

Trending Transportation Updates: May 2019

There were many new and exciting updates in the transportation and shipping industry this month. Check out some of the top stories that made headlines during May!

Freight shipping sector to receive $100 billion funding

Congressman Alan Lowenthal has recently announced the new legislation aimed to rebuild the U.S. infrastructure. In particular, a ten-year $100 billion funding plan will serve as an investment in the freight shipping industry. According to the program, each year, more than $10 billion will be assigned to freight-related infrastructure projects. Also, it will focus on resolving freight industry issues and replacing the old infrastructure.

Read more about new legislation here.

FMCSA asks for the public feedback on the driver age pilot

Federal Motor Carrier Safety Association has recently published a proposal to allow drivers ages 18 – 20 to operate commercial motor vehicles within the state. The FMCSA Administrator, Raymond Martinez, commented, “We want input from the public on efforts that offer the potential to create more jobs in the commercial motor vehicle industry while maintaining the highest level of safety.

Read more about FMCSA driver age pilot here.

DHL launches the first drone delivery service in China

On May 16, DHL was the first logistics company to provide a five-mile route drone delivery in China. The entire transportation took the device 8 minutes to complete, while previously the average shipping time by truck was 40 minutes.

Read more about DHL’s new air route here.

 

How Does Supply Chain Management Work?

Supply chain management is a set of activities that includes supply, production, and distribution of a company’s goods. This production cycle plays an enormous role in any business. Proper supply chain management can reduce transportation costs and enhance productivity, and in order to succeed, companies should learn how supply chain management works.

What processes does supply chain management include?

A supply chain process can be described as a simple example: imagine a cake. First, raw eggs are transported from the farm to the grocery retailer. Then, the eggs are bought by a bakery to bake a cake. The cake is then either set out in the bakery or delivered to a grocery store to be sold to the final customer. All of the processes that stand in-between the raw egg and shelve-ready cake are classified as a supply chain.

So, how does supply chain management work? As a first look, the process can seem very complicated. However, supply chain contain many important key components that make it work properly.

What are the core components of supply chain management?

Transportation

Essentially, transportation is one of the main components that make the supply chain work. Transportation plays a crucial role in every step of product movement, allowing companies to focus on arranging well-organized, smooth logistics for their goods.

Communication and visibility

Supply chains are different in every industry. No matter if it’s a small local business or a large enterprise, supply chain management is a complex process. With so many links involved, it requires proper handling. Without efficient communication between manufacturers, suppliers, vendors, distributors, and retailers, supply chains would fall apart in no time. That’s why consistent communication between all parties is crucial for efficient supply chain management. Another essential part of a successful production cycle is visibility into the supply chain. That means you can easily access and analyze all the needed information to make strategic decisions.

Finance

A complex supply chain suggests high financial responsibility. Bills, invoices, and reports are key points you can’t run production without. Accounting plays a large role in supply chain management since all of the payments have to be documented and stored in a proper way.

Final thoughts

Of course, supply chain management involves numerous other activities and processes. However, the above listed are the primary parts of any supply chain. Today, companies constantly work to enhance their efficiency by applying various supply chain management practices and technologies. With more innovations and automation, it becomes easier to focus on the strategic part of the supply chain management than on its execution.

Learn more about our Supply Chain Management services!

What Is Multimodal Freight and How Can It Benefit You

Transporting an object from one place to another doesn’t seem like a difficult thing to do unless it’s a volume of freight going within continents. In that case, companies have to utilize several modes of transportation to get their freight from origin to destination. These modes involve a ship, air, rail, and trucking, and can be consolidated in different ways. The two main ways to arrange such a complex combined shipment is either intermodal transportation or multimodal.

What is the difference between Intermodal and Multimodal?

The distinctive feature between these two transportation modes is different cargo handling. When a company manages to use intermodal, they sign multiple contracts with several carriers.

In case of using multimodal, shipping still suggests consolidating modes, but everything is signed under the single bill of lading since the freight is handled by one shipping company. Multimodal is often preferred by the shippers since it’s a solid, end-to-end solution.

Read Intermodal vs Multimodal

Why Choose Multimodal?

It depends on the company’s needs which mode will be a better fit. Of course, intermodal offers benefits to shippers, such as the opportunity to choose carriers with the lowest rates, more flexibility, and control. However, watching every step of the shipment and dealing with all the carriers is time-consuming, and certainly requires effort, which is not for every business. Here are some of the most comprehensive advantages of multimodal transportation:

Time savings

Since multimodal transportation is handled by one shipping provider, you’ll only have to communicate and get a report from one entity. This ensures less worrying about the shipment, and faster transit times, which eventually result in higher productivity.

Cost-efficiency

It may seem like picking carriers with the lowest price is definitely a more profitable option. However, the lowest price is not always the greatest deal. Intermodal transport involves not only different contracts and carriers but also multiple shipment insurances. A much easier logistics coordination within multimodal can help you save a significant amount of money on transportation.

Less worrying

When a single carrier handles you freight from door to door, it ensures easier communication and efficient tracking. Moreover, it delegates a larger piece of responsibility and liability to the company coordinating your logistics.

To sum it up, your business could benefit both from multimodal and intermodal, depending on your company’s goals. However, if you don’t want to control every single move of your freight and deal with lots of paperwork, multimodal transportation would probably be a prudent solution.

Multimodal Transport: What is Multimodal Shipping?

There are many different types of transport and various shipping modes available to shippers today to help move goods all over the world. But sometimes, a single mode is not enough. Perhaps, your goods are going a long way from another part of the world by ship or aircraft. To reach the final destination, freight needs to be moved over the road, air, or ocean. In a nutshell, shippers often need to combine transportation modes in order to get their goods to the right place. Logistics companies define two ways of such combination: intermodal transport and multimodal transport.

What is multimodal transport?

Multimodal transportation is a combination of several shipping modes like a truck, rail, ocean or air to deliver freight to its destination. Multimodal shipping suggests all of your freight movements are handled under a unified bill of lading, even if different carriers are moving it.

What is the difference between multimodal and intermodal?

Both intermodal and multimodal transportation suggest using two or more shipping modes. However, there is a list of differences between intermodal and multimodal. When you ship intermodal, a different carrier is responsible for each part of your transportation. Consequently, you have several separate shipping bills and reports from each link in the chain.

When using multimodal, all of your shipments are signed under a single bill of lading. Both transportation methods have benefits and drawbacks, and here we will dive deep into multimodal.

Benefits of Multimodal Transport

benefits of multimodal shipping

Multimodal transport can benefit many businesses that ship large amounts of freight on a regular basis. The main reason why companies prefer multimodal is that it requires less time and effort. All the shipments are under a single bill and are usually managed by an external party. Other than saving money and time, there are many reasons your company should choose multimodal transport when planning your next shipment, including:

Time savings

Since in multimodal transportation one shipping provider handles the entire process, you’ll only have to communicate and get a report from one company. This ensures less worrying about the shipment, and faster transit times, which eventually result in higher productivity.

Cost-efficiency

It may seem like picking carriers with the lowest price is definitely a more profitable option. However, the lowest price is not always the greatest deal. Intermodal transport involves not only different contracts and carriers but also multiple shipment insurances. A much easier logistics coordination within multimodal can help you save a significant amount of money on transportation.

Less worrying

When a single carrier handles your freight from door to door, it ensures easier communication and efficient tracking. It delegates a larger piece of responsibility and liability to the company coordinating your logistics.

Easier Communication

When companies ship through multimodal transportation, they handle all shipping updates, delays and interactions through one provider and contract. This gives shippers ease of mind and simplifies the process of communicating between different contacts and carriers. Essentially, when you have one person responsible for the entire transportation chain, it’s much easier to just focus on the business and not spend time bouncing from one call to another.

Faster Transit Options

Due to new restrictions on truck drivers on driving hours and other regulations, some longer haul shipments are not as fast as they once were. The combination of different transportation modes under one contract lets you have a piece of mind and balance transit time. That way, you avoid drivers driving too long and therefore bypass shipping delays. Giving companies more options for their shipment gives you control and flexibility over the loading and unloading process.

Ultimately, multimodal transport helps guarantee consumers on-time deliveries and true cost savings. Whether you are shipping by air, rail or barge, multimodal shipping can be a solution for you.