Logistics trends we’ll see in 2015

Cassie Stang

By Cassie Stang Business Development at King Solutions

With 2014 already behind us, we know that the logistics industry, as a whole, will change as it develops and grows with new demands brought about by technology and the changing scope of the businesses that use truckload logistics for their products. And, while changes may happen slowly over time to create new and exciting constants within the industry, there are many possibilities that come and go. These are industry trends.

As we look ahead to 2015 and the opportunities it will bring, not only to our business but also to our industry, we thought it would be a great time to take a look at trends we’ll see happening this year.

E-Commerce Continued Growth
While it does not account for all retail sales, e-commerce sales make-up roughly 6.5 percent of sales in the US, according to the U.S. Census Bureau. It’s expected that e-commerce sales will continue to grow by leaps and bounds in the coming years, but more importantly by 30 percent in 2015 alone, according to Bigcommerce.

What does this mean for transportation?

More companies will need to turn to a logistics solution for transporting goods between warehouses and distribution centers. Essentially this means the transportation industry will see growth in 2015, as well.

Falling Fuel and Energy Costs
The price of fuel and energy affects the transportation industry in a big way. The higher these costs are, the more expensive it generally is for companies to have their products transported. In 2015, we’re already seeing the costs of fuel and energy come down, and it’s predicted to continue well into the year with this downward pricing trend.

With lower fuel and energy costs, more businesses will be able to bring their product distribution to a new level by using a third-party logistics company.

Partial Load Shipments
The trend of partial load shipments isn’t new by any means, but more businesses will take advantage of this type of product distribution in 2015. Partial load shipments are designed for customers that have shipments over six pallets but less than an entire truckload. Highway congestion, driver shortage and HOS regulations are also leading shippers to look for smarter solutions for their larger LTL shipments, including using intermodal transportation.

At King Solutions, we’ve created a robust freight consolidation program at our corporate facility for LTL and partial-load shippers based in Minneapolis, MN. We’re paving the way for partial-load shipments with our Partial Load Consolidation program to major market cities across the nation.

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