Trends Influencing Freight Transportation

The freight transportation industry is one that is vital to the national and global economy. Consider the fact that every single transaction that we engage in as consumers is tied to the transportation industry. Online orders are shipped to us through a freight carrier, our food is supplied to our supermarkets via freight and even the gasoline we pump into our vehicles is supplied to gas stations through the freight carriers supporting their respective fuel companies. When asked, most people have to stop and think about where our goods and services come from; freight transportation tends to be one of those “invisible” jobs to the average consumer. However, for those of us in the industry we think about freight constantly and we keep a very watchful eye on the trends and factors that influence the industry.

TRENDS INFLUENCING FREIGHT

Here at Alaska Air Forwarding, we like to stay very current on industry trends and we consult a number of publications to help us do that. Obviously, we see, first hand, what impacts our direct routes but this industry is connected through a huge network so what affects the network affects all of us. The primary trends that we, along with many other industry insiders see influencing our industry are:

• Technology: Technology is a huge influencer in the freight industry. Artificial Intelligence (AI) is proving to be one primary influencer. According to a recent article in Transport Topics, AI can be helpful in identifying opportunities for efficiency, cost improvement and risk management. This is due, in part to, “The growing access to thousands of data points, computing power and cloud capabilities, combined with AI algorithms that analyze trends and predict scenarios, is providing shippers with the real-time knowledge to make faster and better decisions.”
  Blockchain technology is another up-and-coming influencer in the transportation industry. Blockchain is basically an open database that records the transaction history between parties. For the transportation industry, this can be very helpful in creating a secure and efficient supply chain among carriers. This is new technology, but certainly one to watch.
• Consumer Expectations: We live in a fast-paced society and consumers have come to expect quick service when it comes to goods ordered. This has placed a new set of demands on the transportation industry in order to meet these expectations. Building larger networks that can move freight quickly and more efficiently as well as adopting technology that enables efficient planning and delivery of goods have become essentials in the freight industry.
• Government Regulations: Government regulations are an ever-present influence in the freight industry. Electronic Logging Devices (ELD) are the latest regulation that is gradually coming into effect. This is basically a tracking device that monitors the hours truck drivers work. ELDs have been around for some time, but the government has recently mandated that the maximum amount of time a truck driver can work is 11 hours followed by at least 10 hours of rest. This regulation has also required that all transportation companies implement the use of ELDs in order to better track compliance with the mandate.

Of course, these are just a few of the factors that influence our industry, but they have had a significant influence on freight transportation. At Alaska Air Forwarding, we pride ourselves on staying very current and up-to-date with changes that affect our industry. If you have questions about freight transportation, contact us; we have answers. One thing that DOES NOT change, is our commitment to providing our customers the most efficient, safe and reliable service possible.