Shipping Logistics in the US

With rising fuel prices, transportation costs are a major consideration when it comes to where a company locates a new manufacturing or distribution facility. Finding a cheaper way to ship is the main objective of executives everywhere. The following regions’ overall infrastructure make them the most logistics-friendly areas in the US.

1. New York
2. Houston
3. Minneapolis
4. Dallas
5. Kansas City
6. St. Louis
7. Chicago
8. Cleveland
9. Boston
10. San Francisco

1) New York

New York City is one of the most vibrant transportation hubs in the nation, consistently ranking first among U.S. cities in truck freight volume.

2) Houston

The Port of Houston is one of America’s busiest ocean gateways, and its George Bush Intercontinental Airport handles large amounts of foreign trade and cargo.

3) Minneapolis

Minneapolis is rapidly expanding its infrastructure in major metro areas and around the Port of Minneapolis, the northernmost port on the Mississippi River System.

4) Dallas

Dallas boasts access to many options for air, road and rail transportation. The infrastructure and heavy logistics presences make it a bustling shipping area.

5) Kansas City

In the geographic center of the country, Kansas City enjoys diverse and efficient transportation options, with prime access to an anchor of the intermodal network, America’s freight rail system.

6) St. Louis

St. Louis enjoys access to four modes of transportation (air, rail, road, and water) providing access to local, national, and international markets.  The central location and robust infrastructure affords some of the lowest shipping costs in the country.

7) Chicago

Its location on Lake Michigan and along the banks of the Chicago and Calumet rivers give Chicago easy access to a network of waterways, and access to world markets via Chicago’s O’Hare airport, a major cargo thoroughfare.

8) Cleveland

The Cleveland Hopkins Airport, Burke Lakefront Airport, and many harbors make for easy shipping.

9) Boston

The Port of Boston is just the largest of many ports in and around Boston, making it a hub for logistics.

10) San Francisco

The Port of Oakland recently announced that 2017 was the busiest year in its 90-year history.

Pro Tip: Cities with optimal infrastructure for shipping usually make ideal business locations, and can provide easy access to global markets.

Infrastructure That Anticipates Growth

All the cities mentioned here are terrific at using their resources and ingenuity to create an atmosphere that not only listens to but anticipates a business’ needs. When it comes to global shipping and logistics management, that’s a recipe for success.

Contact Us to learn more about our unparalleled shipment management services.

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Rising Gas Prices

Rising gas prices affect business in a lot of ways that aren’t immediately obvious. While fuel is a significant component of logistics costs for some businesses, for others it may not play such a big role. However, gas prices affect virtually all businesses, and staying ahead of trends or shifts will only help you better prepare.

Consumers Buy Less

When gas prices go up, consumers cut back on personal spending. Most will put off big purchases like appliances or vehicles, and anything else considered non-essential. Less consumer spending means decreased profitability for most businesses.

Shipping Costs More

Almost all modern businesses require shipping, either to get products or to send goods to customers. Costs associated with shipping naturally go up with fuel prices, regardless of the mode of transportation you use. However, it’s still possible to get a good value by shopping LTL rates, and working with a logistics team that has the knowledge and expertise to get you the best shipping price.

Businesses Aren’t Protected

There are common misconceptions that rising gas prices only affect consumers and that businesses are somehow protected. This is simply not true, and the same financial strain the average individual feels is also felt by most business owners.

Protect Your Business

The cost of gas determines so many aspects of the US economy, and a dramatic uptick can deliver quite a blow to businesses that rely too heavily on low prices. Protect your business by keeping an eye on gas prices, preparing for change and planning for the worst (and best) scenarios.

Contact Us to learn more about getting the greatest value with a shipment management specialist.

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Trucking Industry Update

Shipping costs have skyrocketed in the United States, which is one of the clearest signs yet of a strong economy. However, this surge has created a demand that the trucking industry is struggling to meet.

Increasing Demand

With online shopping more prevalent than ever, there’s an unprecedented demand for trucks to deliver all the goods being purchased. Consumers have quickly become accustomed to this new on-demand economy. And they want it fast. Most shoppers expect their goods within 48 hours.,In addition to private deliveries, trucks must carry a record number of goods to distribution centers for manufacturers and merchandisers.

Truck Shortage

Due to the enormous demand for trucks, OEM suppliers cannot provide the parts and components needed to build more trucks fast enough. This delay is causing trucking companies to backlog orders in hopes of getting more trucks as they become available. This is creating a surge in orders for trucks as fleets try to handle the unusual situation, and in some cases, a large backlog of shipments.

Driver Shortage

Self-driving trucks might be the future, but for now, the shipping industry still requires humans and is having trouble finding enough. The U.S. trucking industry is short about 50,000 drivers. Fleets are having trouble getting enough trucks, but even if they get them, they likely won’t have enough drivers. Unseated trucks mean that many trucking companies will have to make themselves more competitive to attract qualified drivers.

Trucking Forecast

So what does all of this mean? The trucking industry is resilient, and these kinds of ebbs and flows aren’t all that uncommon. They signal a need to adapt to change, something that the transportation sector is adept at. As companies get more trucks and appeal to drivers with more competitive hiring packages, the demand will eventually be met. Until then, transportation managers utilize LTL shipping strategies and other smart shipping solutions to ensure that goods get to where they’re going on time.

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