Shipping Costs Play a Major Role in the Pricing Structure of Many Industries
Avocados, automobiles, and aviaries.
No single consumer probably understands the breadth of the transportation industry. If you take the time to think about all of the items that are shipped across this country, however, you could likely come up with an alphabetic trio for every single letter.
Glasses, gloves, and gluten free foods.
Mustard, matchbox cars, and mattresses.
And while the listing of the items that are shipped on a daily basis by freight brokers around the world might best be compiled alphabetically, the organization of these full and less than load (LTL) shipments are arranged mathematically. In fact, with the nation’s obsession with next day shipping, those companies who are the best at managing LTL shipments are the ones who stand to be the most profitable. These efforts are so profitable, in fact, that one of the nation’s biggest shippers is now considering offering $10,000 buy ins to individuals who want to start their own same day delivery businesses. In the consumer’s constant quest for immediacy without ever leaving their home, a new shipping offer is going to allow the delivery of goods that are ordered by noon to arrive at their destination by 6:00 pm.
The use of transportation broker software has been common for years, but the increased use of LTL shipments will make this platform eve more important. In addition to the already tight time restraints on so many delivery platforms, a threatened increase in tariffs will make the job of delivery providers across the world even more challenging. When the cost of bringing items into this country increases, the job of increasing the efficiency of delivery methods will become even more important.
The value of freight moved in America is expected to increase from $882 per ton in 2007 to $1,377 per ton in 2040, according to the U.S. Department of Transportation. As just one indicator of the significance of this industry, it is important to realize that every item that we purchase, whether online or in the store, followed a rather complicated and complex network of methods to reach its destination. In fact, research indicates that as many as 12 million trucks, rail cars, locomotives, and vessels move goods over the transportation network.
So whether you are buying zucchinis, zip ties, or zoo supplies you are a consumer of not only the products that you buy, but also the invaluable transportation industry.