Sizing up the logistics and supply chain marketplace, from Logistics Management.
With the first quarter of 2015 officially beginning the homestretch, it seems like a good time to take a look at some of the key themes impacting the freight transportation and logistics market.
Given all that is going on in the markets we cover and that you do business in, it stands to reason a few things will be left out so please accept my apologies in advances.
Perhaps the biggest story, or theme, early into the New Year is the one relating to lower energy costs i.e. cheap fuel. No matter how you look at it, the pros will always outweigh the cons (if there are really any, that is) here. This ranges from the most-welcomed byproduct of lower operating expenses and transportation budgets.
It also makes a welcome change for motor carriers in lowering backhaul and “empty miles” costs or at least make things somewhat “less worse.” But as is the case with most things, it really is unlikely to last forever. For anyone needing further proof of that, all one needs to do is notice that the average price per gallon of diesel gasoline has increased in each of the last four weeks, rising roughly ten cents during that time. This is something that needs to be watched by shippers and carriers alike in the coming weeks.