Length Of Haul Is Declining Why Less Than Truckload Is Remaining The Preferred Transportation Method

Written by Business Success on . Posted in Ftl ltl, Load broker, Ltl shipping rates

Transportation is changing. Keeping up with it means admitting some things aren’t working.

Customers expect their deliveries to arrive not just in one piece, but ahead of schedule. Businesses want to ensure they’re keeping their consumer base around with lucrative offers and one-of-a-kind deals they can’t find anywhere else. Top this off with the inherently dynamic nature of transportation and it all sounds like a very tall order. With the aid of broker TMS software, however, you can do just about anything. There’s a lot to keep up with and only so much time to get to it all, so consider looking below.

Freight management is an element you should get the hang of as soon as possible.

Today’s Impressive LTL Market And You

Just where is today’s transportation market at and how can load broker software help you keep it all sorted? According to industry estimates the LTL market is estimated at a nice $35 billion, expected to remain steady for the foreseeable future. Back in 2013 trucking alone transported nearly 15 billion tons of cargo, with the Bureau Of Labor Statistics reporting that 2040 will see this number rising to nearly 20 billion tons. Figuring out the gaps in your transportation process will go a long way in changing the game. Customers are clear about what they want…all you have to do is answer.

How Transportation Has Changed Over The Years

E-commerce has played a major part in changing the way we look at transportation. Nearly 12 million trucks, rail cars, and locomotives move goods across the transportation network every day. While air transportation has made some ventures easier, the truck is yet to fall out of style for small and local businesses. American e-commerce revenue is hovering around $425 billion, climbing steadily by the year. Less than truckload is responsible for much of this due to its convenience and accessibility across several sectors.

The Extensive Appeal Of Less Than Truckload

Why choose less than truckload (also known as LTL) over a full truckload? Just look at some of today’s statistics. According to the U.S. Department Of Transportation, the value of freight is expected to increase from around $880 per ton to $1,300 per ton in just a few decades. Businesses are in a constant balancing act attempting to keep costs in check while delivering on quality. According to Satish Jindel (the president of SJ Consulting Group), length of haul has actually declined.

Future Estimates By Industry Professionals

Combine the shorter length of haul with the higher price of tonnage and you can see why some methods are more popular than others. Broker TMS software is just a tool used to sort all these statistics, figures, and schedules together in a way that’s meaningful. Trucks carry the largest share of freight by value, tons, and ton-miles for shipments moving 750 or fewer miles. Rail, however, remains the dominant mode by tons and ton-miles for shipments between 750 and 2,000 miles. Satish Jindel has gone at length to stress the responsibility held by for-hire freight tonnage in pushing retail forward — nearly 25%, according to recent estimates.

How Broker TMS Software Will Change The Way You Work

It’s not possible to keep thousands, even millions, of orders every year in one spot without a little help. Broker TMS software is explicitly designed to keep track of everything while pushing you ahead of the curve. According to data provided by the Federal Motor Carrier Safety Administration, nearly six million commercial motor vehicle drivers work in the United States. Alongside skyrocketing e-commerce rates and more expensive tonnage, a little more organization could make all the difference. Installing a broker TMS system is a simple process that can be done in just a matter of days.

How will you move forward? Let a freight broker software system lead the way.

Leave a comment

You must be logged in to post a comment.