HOUSTON, June 30, 2020 /PRNewswire/ -- Larry Mullne from AA Logistics Trucking discusses several new developments due to the global pandemic.
- Due to the pandemic, there's a strong demand for "essential commodities" at this time. Global logistics market size is projected to grow from USD 2,734 billion in 2020 to USD 3,215 billion by 2021, at a Y-O-Y of 17.6%. Stronger demand for PPE gear and government funding of supply chains has played a role. https://www.marketwatch.com/press-release/covid-19-impact-on-logistics-supply-chain-industry-market-to-reach-3215-billion-in-2021-2020-06-08?mod=mw_quote_news
- The Agriculture sector of the economy is not experiencing as much regulation as other sectors. This allows for an increase use in logistics companies to move agricultural freight from A. to B.
- Ordering groceries online has become more commonplace. Shipping companies have fulfilled grocery store demands.
- Trucking is considered an "essential" form of shipping now, while airlines or boats have more government restrictions.
- Because of concern over health and safety, there is a current shortage of drivers. They are needed the most during this time because of the transport of essential goods like medicines, and food.
- Bigger and more experienced logistics companies with higher inventory levels and better performance will survive, while smaller logistics companies will go out of business, thus reducing the competition.
Logistics consultants, like Larry Mullne, recommend that freight shippers fully evaluate their processes and the services they offer when implementing a cost-savings plan. Learn the differences between different types of shipping. https://aalogisticstrucking.com
Larry Mullne defines some terms of logistics:
FTL, Full Truckload, is used for dry vans, flatbeds, stepdecks, RGNS, aluminum end dump, and steel end dump.
LTL, Less Than Truckload, is used for below 8,000 lb.
Partial Truckload is above 8,000 lb.
When a load of goods doesn't fill up a truck, partial truckloads can help decrease the cost to ship. Less than truckload (LTL) shipping requirements are hard for most businesses, however, many of them don't ship enough goods to fill up a truck or make it worth the cost of a full truckload (FTL). This is when using partial truckload shipping is the most cost-effective option.
Less than truckloads (or LTL) are designed to ship smaller amounts of goods like one to six pallets. While appearing cost-effective up front, they are smaller than six pallets. Chance for damage is increased when loading and unloading on the truck. The stops can take longer than anticipated, which delays the delivery times and becomes more costly than partial truckloads.
AA Logistics offers a state-of-the-art LTL system that puts the shippers in control of their LTL process. Larry's main goal is to help his customers find a cost-effective option that allows them to have control over their shipments.
SOURCE AA Logistics Trucking