Flying Freight News: Air Cargo Continues to Recover at a Slow Pace
When the air cargo capacity bottomed out in both cargo and passenger transport, it created a massive diversion of freight through other modes last year. And now, major carriers, such as DHL Express, are working to change their approach to international air with the creation of a cargo airline in Austria, reports FreightWaves. Again, such moves will inherently mean more opportunity for supply chain optimization from procurement through the final mile of each transaction.
Intermodal Freight News Experiences Record-Setting Volumes and Revenue
Parcel and Final Mile Carriers Join Forces to Create a Stellar Customer Experience
On July 8, 2021, President Biden signed an Executive Order for transportation agencies to increase scrutiny of anti-competitive conduct and unjust fees, noted Reuters. The goal of the executive order was to increase competition and lower rates. However, the uncertainty in the market and this latest move will likely have the opposite effect, creating instability that adds to costs, especially in the spot market.
And as early as the afternoon of July 8, 2021, reports, MarketWatch railroad stocks had fallen slightly. CSX stock was down 5.7%, Union Pacific fell 4.2%, Kansas City Southern declined 7.7%, and Norfolk Southern fell 6.9%. Despite that uncertainty, stocks appear on their way to recovery as of Friday, July 9, 2021. It will be interesting to see how the fruits of the executive order play out in the real world and whether they do indeed result in a decline in ocean rates, which will result in a subsequent lessening of rail rates. Again, supply and demand remain in control, and the informed shipper or LSP is the winner of the game. And like any game, the rules can and do change with time.
The Freight News Endgame: Evolution in the Market Is Coming
While the industry transforms the unprecedented demands of the past year, the remainder of 2021 is uncertain. However, a few other measures find their way into the freight news highlights to help companies realize a more significant future potential. For instance, Blume Global announced being carbon neutral, noted PR Newswire, and Walmart is planning an all-electric final mile fleet launch that’s powered by renewable energy, says Supermarket News. These stories hint that even in the face of uncertainty, the industry is on track and moving in a forward, positive direction. For the modern shipper, evolution and adaptation are everything. More and more companies need visibility to options that not only save cost but also reduce carbon footprint. And MercuryGate’s Smart TMS will be there to help logisticians of all sizes stay apprised of the market, consider its impact on their transportation networks and help by continuously optimizing everything at all times.