The freight industry has experienced changes over the last few years. One of these is the increased demand for less-than-truckload (LTL) deliveries, which has been attributed to the expansion of e-commerce within the United States. This level of activity is expected to continue and substantially increase over the next few decades.
A Brief Overview of Retail Activity
Given the increased retail activity due to U.S. e-commerce, carriers have needed to make adjustments. In addition to goods being shipped in full truckloads (TL), they are also shipped in LTLs. Satish Jindel, the SJ Consulting Group’s president, stated that retail shipments account for 23% of the for-hire freight tonnage. Jindel also reported that the length of haul has declined over recent years. Between 2011 and 2016, for example, the average length of haul decreased by four percent.
A Brief Overview of Retail and Transportation Revenue
Recent data indicates that U.S. e-commerce revenue is approximately $423.3 billion and will continue to increase in value. The LTL market alone has an estimated value of roughly $35 billion. While trucks carry the largest freight value for up to 750 miles, rail is still commonly used to transport shipments across 750 to 2,000 miles. The U.S. Department of Transportation reported that the value of freight is also expected to further increase. In 2007, for instance, the per-ton value of freight was $882.00. By 2040, it is expected to be worth $1,377.00 per ton.
Learn More About Freight Broker Software
There are different types of transportation broker software that streamline the freight shipping and carrying process. A load board can assist your company with managing LTL as well as TL shipments. Transportation management systems are available with load board and MacroPoint integrations, both of which can make a positive impact on your overall business operations.
Freight broker software can assist your company with meeting the growing demand for shipping cargo. The Bureau of Labor Statistics reported that 15 billion tons were transported in 2013. Projections indicate that 18.7 billion tons will be shipped by 2040. Given this, transportation broker software is a valuable tool.