Transportation & Logistics Industry Update
Key Trends In The Industry
"The Industrial Internet of Things (IIoT) is attracting strong attention from large corporations and venture capital firms, with global funding growing from ~$200 million in 2011 to nearly $1.2 billion in 2015. Transportation companies have been using IIoT devices to track vehicle location, speed, and other variables for some time now and the next step will likely be to add video monitoring systems to fleets for real-time situation management, as well as ongoing security and surveillance."
What We’re Reading
"Logistics sector hiring kept up a brisk pace in July as delivery firms, trucking companies and warehouse operators added 15,600 jobs ahead of the peak shipping season. Courier and messenger company payrolls rose by 7,600 jobs in July, the biggest monthly gain since March, extending an expansion in transport operations driven by e-commerce and the home delivery of online purchases."
"The electronic logging device (ELD) mandate has had a broad impact in its first eight months, but not the influence many shippers, brokers, and carriers expected. The rule’s effect on truckload capacity is seen more in emerging time constraints on shipping lanes rather than a loss of truck drivers, John Wiehoff, CEO of C.H. Robinson Worldwide, said."
Rail | A Fresh Look at Intermodal
"Shippers see a trucking sector that finds it hard to find drivers, and operates at essentially full capacity, resulting in reduced availability and higher prices. Consequently, logistics decision-makers are considering alternatives, and intermodal offers obvious appeal."
"As the economy and GDP grows, so does container volume. Some North American ports are capitalizing on their competitive advantages and growing faster than the overall market. Since recovering from the global financial crisis, loaded inbound container volumes associated with North American imports have expanded at twice the compound annual rate of growth for the combined U.S. and Canadian economy."
"The Air Freight industry is riding a wave of positive customer sentiment as online shopping continues to expand at a rate of knots. The purported e-commerce boom is fueling demand for air freight, ramping up profitability of major airlines, despite growing tensions among major players. According to the International Air Transport Association, demand for air freight in 2018 is expected to rise by at least 4%."
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