2015 Looks Bright for Freight Transportation
Posted by Debra Carbone
Fuel prices are down, e-commerce is up and things are looking good for freight transportation this year. In his blog post “Transportation Year in Review”, freight consultant Dan Goodwill lists the 15 major trends shaping the North American freight transportation industry for 2015 with lots of areas evolving to include improved calculations of shipping space for carriers, lower fuel prices which will have an increasing impact of Canadian imports to the United States, and mergers and acquisitions that will expand e-commerce growth.
The “2015 Transportation Outlook” as described by KC SmartPort, a non-profit economic development organization that consists of freight-based companies, notes a positive outlook for 2015 as well with growth expected in air, intermodal and rail and increasing demand for trucking despite driver shortages. Noted in the article is that Transportation Management Systems (TMS) is one of the technologies that is rapidly advancing in the transportation industry due to the need to improve business processes and analytics.
The news isn’t all rosy though, with driver shortages and regulation issues challenging trucking companies to find ways to keep their rigs on the road with fewer staff and less time allowed behind the wheel. Port congestion will confront shippers as an increase in ocean freight and an abundance of larger vessels is anticipated this year. Deborah Lockridge and Oliver Patton talk about the “15 Things to Watch For in 2015 (And Beyond)” related to the trucking industry. Their top three trends point to the driver shortage, tightening capacity and improving productivity. Trucking companies are doing all they can to improve control and increase margins. New technology such as high-tech routing software and telematics (wireless technology and computational systems) are being implementing for greater insight into fleets.
Having a modern financial management system in place integrated with other specialized systems like TMS allows visibility to these trends by tracking such things as fuel spend, most profitable routes, and capacity needs. It also improves business processes and manages mergers and acquisitions by accommodating multiple companies, currencies and languages. Because, trends come and go, but the right financial management system will make sure your future looks bright in 2015 and beyond.