Onward to a Brighter Road Ahead
By Kelly Greenlee, President of RMX Global Logistics
We are finally moving on to a more productive and growing economy after going through a lot of disruption due to COVID-19 and its aftermath.
While we are still feeling some of the effects from 2020, this year is already seeing a big turnaround. The trucking industry is in a strong place and the economic boom we are seeing will continue to keep us busy.
We’re very optimistic about the overall U.S. economy. Many of the COVID-19 safety restrictions are being lifted, making this a good environment for a big increase in consumer spending.
A report recently released by the Council of Supply Chain Management Professionals pointed out that “the logistics sector continues to demonstrate the perseverance that carried it through the toughest days of the economic downturn that accompanied the coronavirus pandemic.”
One interesting factor in the shifting logistics economics is the changing consumer behavior. Logistics operators whose businesses boomed during the Covid-19 online-ordering surge say they are maintaining their investments and upbeat outlooks. They expect the rush to online commerce that came at the start of the pandemic has altered buying habits long-term.
U.S. e-commerce sales rose 42% last year, according to Adobe Analytics. The Council of Supply Chain Management Professionals report found that a surge in e-commerce and changes in consumer behavior drove parcel costs up 24.3%. This unprecedented increase in digital business drove massive growth in distribution operations and spurred millions of dollars of investments in supply-chain technology.
Freight demand has been regaining momentum since the middle of 2020 causing more constrained truck capacity. Capacity levels are strained and reaching all-time historical tightness. Today, reliable carriers are in high demand and have more choices on which organizations to work with than ever before. We are grateful for the steady relationships we have built with our carriers so that we can continue to keep our customers moving in this difficult landscape.
In general, industry experts believe the outlook for trucking is bright. “We’re just in the beginning stages of this very robust recovery,” said Bob Costello, chief economist at American Trucking Associations. “People are ready to get out. They have been cooped up. They are ready to have fun. They’re ready to spend,” Costello said. There is pent-up demand for goods.
We look forward to what’s ahead!
RMX is dedicated to providing predictability and structure within our freight networks. We have a history of building long-standing relationships with reliable transportation providers, making us your shipper of choice. CONTACT US