The slump in commodity prices over the last few months, combined with an economy in China which is leaning towards recession have combined to decrease shipments of manufactured items and raw materials around the globe. World trade volumes increased by only 1.5 percent from September to November compared with the same window in 2015. It's clear that volume growth has been significantly weaker during the current economic expansion than during previous cycles, but it has slowed even more since early 2015.
News broke late last week that Amazon.com has been engaged in conversations to lease cargo airplanes and develop its own freight operation. The Amazon executive team seems to have decided that it wants Amazon to have more direct control over delivery and shipping operations, and other trials (such as the door to door drone delivery program) which seem to suggest the same are already underway.
The refugee crisis in certain European countries is having a significant impact on logistics. Rates have increased and air freight has become a true alternative for many shippers of time-sensitive freight. Because some borders and entry points have been closed over the past month, there have been scores of cargo trucks unable to make deliveries, and forced to wait while congestion and extended security checks take their toll on the transportation infrastructure.
Anyone who has spent much time in the logistics industry knows that small parcel carriers like UPS, DHL and FedEx charge extra for oversized items. When shipping product Internationally, these charges can add up quickly and can become very expensive. Most people also know that very large shipments often make their voyage overseas on airplanes. The parts in between can be confusing and very expensive, if you’re not prepared and experienced.
In the United States, ports on the west coast such as Seattle and Oakland, CA reported double digit increases in freight volumes compared to the same time last year. In the specific case of the west coast ports, these increases seem to mean that the major delays, labor issues and congestion that plagued them are finally in the past. On the east coast of the USA, major Gulf and Atlantic ports including Houston, Charleston and Norfolk also saw meaningful increases in volume when compared to the early Fall of 2014.
New vessels are being built bigger than ever and shipping lines are forming bigger alliances to make the most of them. Shipping lines are utilizing larger ships by allowing other alliance members' cargo on their vessels. However, the past few months have left container stacking areas in the quays full and overflowing. In particular Los Angeles and Long Beach have been citing struggles in handling the massive volume of empty containers during this past peak shipping season.
Shippers may have an advantage over truckers in this transportation cycle. The current shortage of qualified and experienced truck drivers is hurting the industry in this freight transportation cycle. Increases in orders, and lack of a decrease in costs of shipping are also hurting the trucking industry.
The GlobalForwarding.com team shares come common types of delivery locations in this week's blog!
Business Addresses
Most trucking companies define a business as any active organization that is zoned commercial or industrial and is open to the public during normal business hours.
Shipping managers everywhere will tell you that in recent years, LTL carriers have become mroe aggressive with regard to weighing and correcting the freight class of shipments in transit.
When you have hazardous material that needs to be transported, GlobalForwarding.com and its network of over 85 national & regional LTL carriers can help! Our employees are trained experts and can help answer your questions, and make sure that you are in compliance with laws and regulations. It is important to note that state and federal regulations not only apply to the carrier, but to the shipper as well.
