The dust has settled from the holiday season and 2019 is here, which means a lot of people are starting to get back to work. For the shipping industry, this takes a different turn, though, as companies and individual professionals alike need to adapt to the ever-changing landscape to keep profits strong and efficiency up. Here are some of the key factors shipping companies should be looking out for.
E-commerce still matters: Chances are you’re aware of exactly how much e-commerce is driving work in the shipping industries, from giants like Walmart and Amazon to the smaller companies out there. However, there are a few specific things that you want to look at. For example, less-than-truckload was, at one point, considered to be on its deathbed, but LTL shippers are now doing a lot better, and this looks to be the same in 2019. This is because smaller urban fulfillment centers often need smaller shipments to meet e-commerce customer expectations, which LTL shippers are perfect for.
Some sectors are down: While e-commerce is set to be a winner for the near future, not all shipping specialties are working as well. Other growing sectors after the holidays include industrial technology and consumer goods. However, some weaker ones include automobiles, metals, and construction shipping. In addition, after the economic boom of the last few years, some experts are predicting some sort of downturn, if not this year, then in 2020.
You may want to think about energy: We’ve already talked about how the increased demand for trucking and fewer truckers to haul freight are causing some issues, but one thing that also bears mentioning is energy costs. Right now, diesel and natural gas are going to be the key factors for the time being, and electric trucks, while achieving innovation, are not going to be able to handle the major routes they need to in order to hit the mainstream. This is why you need to make sure you are as efficient as possible in your operations.
Urbanization means more money for trucking companies: Statistically speaking, 55% of the world’s population lived in urban areas in 2018, and this is headed towards an upward trend in the years to come. Urbanization changes how people shop, which means that the increased demand for trucking and transportation is only set to grow. This means that supply chains will not only need to be able to weather the storm, but will also need to consider adopting more technology, like AR, VR, and mobile tech, to better serve their customers.
Coming into 2019, it’s easy to feel that you as a shipping professional may be at the mercy of some of these upcoming trends, but it is possible for you to take control of these trends by implementing the top technology into your supply chain. This is where Hwy Haul comes in, a breakthrough technology platform designed to change the field of logistics, from the largest shipping companies to smaller operations. Our goal is Connecting Enterprises to Truckers – Seamlessly! If you’re interested in learning more about #HwyHaul, visit our website at https://www.hwyhaul.com.