Autonomous Trucking, Carrier Relationships, Food Sector Bullwhip

“FMCSA AUTOMATED TRUCKS PROJECT HEADED TO WHITE HOUSE”

The FMCSA announced they will begin surveys and efforts to explore automated driving systems in the trucking sector. However, the feedback the FMCSA received opposed the project mentioning it could cause a loss of truck driving jobs.

 

“RELATIONSHIPS KEY TO NAVIGATING CAPACITY CRUNCH”

With the reopening of most businesses, consumer spending in the most impacted sectors is now rebounding, causing a massive spike in demand for transportation services. Carriers have the upper hand as they have their pick of freight, so a healthy carrier relationship is key in order to be successful.

 

“FOOD SUPPLY CHAINS ARE STRETCHED AS AMERICANS HEAD BACK TO RESTAURANTS”

Food sector distributors across the country have been enduring shortages in food products and workers, while transportation costs continue to rise. The food sector is experiencing a “bullwhip effect” where companies had previously pulled back their operations during COVID-19 but are now rapidly attempting to expand, making it difficult for suppliers to catch up.

 

WHAT CAN WE CONCLUDE?

Some of the common themes across all the freight markets are that suppliers are trying to catch up with demand and companies are short on workers. The sudden reopening of most of the country has created a massive surge in demand for transportation services. International shipping still hasn’t seen much relief from the tight capacity.

While carriers are favored in the current market, they still face financial pressure and an understaffed workforce . 3PL’s must recognize this and capitalize on the opportunity to build strong carrier relationships that can provide value for both the carrier and the shipper.

MVP Logistics is here to answer all your questions about your supply chain and what steps to take to plan for and address the expected challenges. For an analysis of your supply chain, contact us virtually or give us a call at 1-888-390-5320.

MVP Logistics is your 3PL logistics partner for supply chain project management, logistics, warehousing and fulfillment, LTL, and other supply chain needs. Our Minneapolis, Houston, and Los Angeles area warehouses provides local, national, and international shipping services. Find your solution today.

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