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A little bit of history…February 1, 2016

The trucking industry, or more specifically the freight management side of it has changed

immensely in the last decade. This is due to various factors that encompass the needs of

customers, shippers, and carriers alike. As the old saying goes, “in a world where our focus has

become driven (no pun intended) by faster, cheaper, and better,” how does the industry adapt?

Customers and consumers will always have a need for both soft and durable goods that need to

be transported on a continuous basis with efficiency and cost at top of mind. Population growth

is increasing the need for commodities manufactured throughout the world; the supply chain

is essential. It is estimated that 70% of Canadian domestic freight is moved by truck. Let’s look

at it like this, as an average consumer of any product you see, eat, wear, or use, was moved at

least once via truck. On the cross-border side of transportation Delivery Duty Paid, or DDP, has

become the “go-to” for many manufacturers to offer their clients. DDP offers full coverage to

their customer until the goods have been received. This includes transportation, duties, and all

incurred costs. Seems efficient and protected, but is there a better way? Technology has

provided the industry with Real-Time GPS tracking of shipments to provide accurate delivery

times and control the logistical placement of trucks for more efficient service. Furthermore

there have been many advancements with online platforms allowing customers, shippers, and

carriers to effectively complete their role in the process. But does it work? Let’s ask again, is

there a better way?

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It’s clear that trucking is an indispensable variable in the supply chain. It’s simple, we cannot move

goods from manufacturer-to-warehouse-to-end destination, or any combination, without it. Often we

see manufacturers and warehouse companies steer away from moving their own goods due to the high

costs incurred from such an endeavor. This is subject to the commodity being produced but moving their

own product requires equipment, maintenance, storage and staff, all very costly and time consuming.

This is especially relevant to LTL. So what is the answer? Outsource to an established carrier that can

exclusively move their goods or use multiple carriers? Again a very costly endeavour as this requires a

full-time employee to coordinate the transportation. So where does that leave us? Ladies and Gentlemen

the birth of the Logistical Consultant (LC). Depending on the need of a customer, manufacturer, or

warehousing company an LC can be an enormous asset. Reputable LC’s have a unique knowledge of the

transportation industry and established network of trusted carriers. Their network allows them move

freight at a reduced cost to their customer while taking full responsibility for the load in all aspects.

Consider the role of an LC as your one-stop-shop for all your transportation needs. An established LC

will closely monitor shipments from door-to-door and look after all the required paperwork, from

dangerous goods to customs documentation. Their knowledge and expertise shines by using the

appropriate carrier for the specific move. This takes the onus entirely off of their customer and at a

reduced rate. It’s a growing profession and continues to provide effective and efficient service to all

parties mentioned above.

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Cross-border shipping is a vast aspect of the transportation industry, NAFTA opened the gates for North

America and overseas shipping is becoming ever more popular as manufacturing costs are far less across

the pond. As mentioned Delivery Duty Paid (DDP) has become increasingly common when moving freight

cross-border. DDP is defined as such – all risks and costs reside with the seller of the good until delivery

is made, any damage or loss of cargo is the sole responsibility of the seller. To a customer of any

commodity a very attractive proposition indeed. Now what about cost? Is DDP “baked-in” to the cost of

transportation? Of course it is. Again here is where an LC can be a crucial asset to any customer whom

has purchased goods that need to be moved cross-border. As we touched on previously reputable LC’s

assume full responsibility for all the cargo they move. The cost savings begin with the reduced rate that

their carriers offer exclusively from an existing relationships and knowledge of the industry. Damages

and insurance claims are covered by the LC inclusively. They manage the move(s) and closely oversee all

shipments. So is DDP the path of least resistance and the most efficient way? Or is it just an upsell, like

buying extended warranty on a new flat screen TV?

Technological advancements and feats are mostly based on making life easier and more efficient.

Technology has, and continues to pave the way to make our lives easier and more practical. It has

changed the way the world thinks many times over. The transportation industry is no exception, let’s

look into the future of transport. An up and comer in the industry is Pick My Load Inc. Their premise is

simple, preforming as a free Cloud based solution for the trucking industry, where shippers and carriers

will have their profiles set-up. Profiles include all information that is industry specific and legally

compliant, it allows the tool to execute their shipping needs on a daily basis, but this is also thought as aPDF generated automatically by the HTML to PDF API of PDFmyURL

matching tool, allowing the service seeker and the service provider to find each other in the easiest, most

intuitive way. The unique and innovative aspect is pricing. Their model allows the trucking industry to

self-regulate in terms of freight pricing since transport costs will be entirely up to the shipper to decide

and it will be totally up to the carrier to accept the “offer”. A very creative approach to the future of

transport…

All industries change over time due to uncontrollable variables and obstacles. It’s a sink or swim scenario

and the need for creative effective solutions is apparent. Trucking will always exist but how do we make it

faster, cheaper, and better? Logistical Consultants provide a service that saves their clients time, money,

and resources. They bring a skill set and knowledge to the table that is unmatched in the business. LC’s

may be the answer to DDP as the same service can be provided at a lower cost and less client assets being

spent on logistics. Online platforms such as Uber (in the passenger sector) or Airbnb in the hotel industry

have been widely successful. No doubts that a similar model should take flight in the freight realm.

Shifting the transportation paradigm has indeed started…

This entry was posted in Uncategorized and tagged #Cargo, #Freight, #LTL, #TransBorder. Bookmark the permalink.

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