We have asked senior managers at Allyn International to investigate the top trends in logistics. On this 5th day of May, we have compiled the top 5 topics that are #trendingnow. Are you interested in knowing more about these trends? Just tweet us using the hashtag #allynintl or email us at [email protected].
 
Aftermath of West Coast Port Strike
 

Even though the West Coast port strike has been resolved, the country is still feeling the effects of the work stoppage. A major increase in the freight booked to the East Coast has led to congestion, capacity issues, and long truck lines, with the end result being increases in transit time and costs. 

Fuel Costs Continue to Drop

 
 

As fuel charges continue to drop, so do the fuel surcharges that carriers charge clients. In April 2014, the national average for LTL fuel surcharge was 17.4%. This has fallen to 10% in April 2015, and represents a decrease in revenue of 7.4% for LTL carriers.

 

Dimensional Pricing
 

LTL carriers which have traditionally rated their freight based on the National Motor Freight Classification (NMFC) want to move the industry towards a rating based on load dimensions.  When using the NMFC, goods are coded based on density, stowability, handling, and liability. When using dimensional pricing, a client is charged based on how much of the truck space is used.  A switch to a dimensional rating methodology should result in companies paying more for LTL service. See what our experts are saying!

Uberization
 
Whether it is automated delivery via drones or procuring freight transport over an Uber-like app, the traditional means by which companies move cargo is going to be challenged over the next few years. For those who do not know: Uber is an app that makes it easy to order a taxi with a click from your smartphone. But soon with the help of Uber-like platforms, shippers will be able to see trucks instead of taxis nearby and book one directly instead of a broker. 

Mobile transportation apps may be very beneficial to the logistics industry - they will prevent the trucks from having to drive empty which also helps to decrease expenses.
Automated Vehicles
 
This trend's fulfillment might still be at least 10 years away, but some companies are already working on creating driver-less trucks. Along with the technology, the profession of the driver would also change by being an operator of a self-directed truck, which will make it less stressful and more varied. The technology would make truck driving more appealing, which is necessary in a situation when the shipping industry is facing the likelihood of driver unavailability in the coming years.

Click here to view more details and to see a clip of a driver-less truck model.

Allyn International Services, Inc is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance.  Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North America, Europe and Asia and Allyn regional headquarters are strategically located in Fort Myers FL USA, Shanghai P.R. CHINA and Prague, CZECH REPUBLIC. For more information, log on to www.allynintl.com.