The rise of ecommerce is changing the shipping and transportation industries. The size and distance travelled by shipments have both decreased, while the total volume of shipments as well as their value have increased. These are projected to continue increasing. Expedited freight companies that handle smaller shipments and less than a truckload or LTL can help shippers to streamline costs while ensuring the safety of goods.
How ecommerce is changing the shipping industry
The rise of ecommerce, with people buying everything from groceries to mattresses online, has drastically transformed the shipping and transportation industries. Total U.S. revenues from e-commerce are already worth approximately $423.3 billion and rising. Shipments can vary in size from a full truckload, to less-than-truckload (LTL), or just a parcel. The LTL market itself is worth about $35 million.
Not only do shipments sizes vary, so do the distance travelled and the value of each shipment. The distance of each haul has been declining, according to Satish Jindel, president of SJ Consulting Group. Between 2011 and 2016, the average length of haul has decreased by 4%. With all of these changes, carriers are modifying their services to meet the changing needs of the industry. Many expedited fright companies now offer LTL shipping services.
Shipping software for changing needs
New LTL shipping software keeps shipments safe and on schedule. Tracking shipments with new software makes it easier to ensure the safety of speciality freight, like machinery, electronics and motorized vehicles. These are the most valuable types of freight carried by the U.S. shipping industry.
The value of shipments has been increasing, going from $882 a ton in 2007 to a projected $1,377 a ton in 2040, according to the U.S. Department of Transportation. This means that there is greater need for safety of shipments as well. New less than truckload software helps shippers know exactly where their packages are in real time, helping them stay on schedule.
LTL freight services, new tracking software and expedited trucking are some of the new services offered by shipping services. Expedited freight companies are adapting to meet the changing needs of the shipping industry. For all those looking for secure and reliable shipping options, like manufacturers, distributors, trade show managers, VP’s of sales and VPs of ops, shipping managers and CFO’s, the new services offer a way to balance safety, on-schedule delivery and costs.