LTL, Truckload, and Warehouse Storage Trends
With 2020 being a year filled with so much volatility, many supply chain leaders are realizing they cannot use historical data to plan their transportation and logistics budgets for 2021 adequately. While the pandemic illuminated weaknesses within supply chains, 2021 has been somewhat a play-it-by-ear year.
LTL Trends:
Many LTL industry trends, such as capacity constraints, rising rates, and changing consumer buying patterns, will continue through the remainder of 2021.
Capacity constraints will most likely become more pronounced ahead of the holiday peak season.
Increase in diesel fuel prices – the average diesel retail price per gallon is $3.29 as of June 21, the highest average since May 28, 2018.
E-commerce sales will continue to climb: The Census Bureau of the Department of Commerce released their estimate of retail -ecommerce sales for Q2 2021 on August 19th: $222.5 billion, an increase of 3.3 percent (±0.7%) from the first quarter of 2021.
Truckload Trends:
The truckload industry will face the same issues as LTL, with an increase in rates up to 10%.
Warehouse Trends:
Before 2020, customers were focused on meeting customer demand. For 2021, the focus shifts to mitigating risk resiliency in supply chains.
The boom in e-commerce has accelerated the need to expand warehouse and fulfillment space closer to population centers to meet faster delivery windows. In the past, low-cost warehousing space was priority. Many companies will invest in warehouse space closer to their customers, even if it means an increased cost to serve.
The rapid adoption of new technologies that are part of a single solution or platform that allows customers to see across their entire supply chain. With more real-time insights and data to inform decisions, companies can map out the flow of goods from manufacturing facility to end-user more efficiently. Digital transformation will allow organizations will have a better idea of their inventory levels and location.
Leveraging a partnership with a trusted 3PL will help organizations navigate the ever-changing market.
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