Many companies can provide third-party global logistics services. Most of them have a single or few specialties, such as domestic transportation, warehousing, freight forwarding, audit and freight payment, etc. But with our 25+ years of experience, Logistics Plus is much more than a typical 3PL. We’re the company known for saying YES, not NO, to your unique supply chain challenges. We handle projects from start to finish by doing what other logistics companies can’t or won’t do – and you won’t be waiting on us. We operate leanly to be agile and responsive to your needs, yet we are large enough to have a network of solutions that span your entire supply chain.
In other words, we provide Global Logistics + So Much More.
We are a 21st Century Logistics Company™ and leading worldwide provider of transportation, warehousing, fulfillment, global logistics, business intelligence, technology, and supply chain solutions. And here are ten reasons why companies work with us:
We manage your logistics so you can focus on your core business.
We have been in business for over 25 years, and our teams have a wide variety of skills across many disciplines – we can do pretty much anything needed across your entire supply chain.
Our teams can integrate with your company in various ways, from full-time onsite resources to offsite logistics management of multiple locations.
We manage inbound and outbound domestic freight and international cargo across all modes of transportation.
Using technology, business intelligence, and global control towers, we connect all the links in your supply chain, from vendors to customers, to provide end-to-end shipment visibility. From international sourcing to warehousing inventory to final delivery, you see it all.
We’re small enough to be agile and responsive to your needs yet large enough to have a network of solutions that span your entire supply chain. We call this the ‘Goldilocks Zone,’ and your business will always be important to us.
Our services are customized to your requirements, so you always get exactly what you want and need. And because we’re nimble, you won’t be waiting on us.
We have offices and warehouses in over 30 countries around the world, and we have valued partners in most other countries – we are a global solutions company.
Our professionals are available to you 24/7/365 – after all, this is still very much a people business.
With our trademark Passion For Excellence™, we are the company that puts the + in logistics by solving problems and taking away your headaches!
The Covid-19 pandemic has affected all parts of the global logistics industry. From the way we source raw materials to how final deliveries are made, the industry has changed forever. With an increasingly globalized world, the demand for logistics services is at an all-time high. Each year, the logistics industry undergoes significant change. As the world continues to move forward, it is crucial to stay ahead of trends and innovations that will shape the future of logistics. Let’s look at some of the top global logistics trends to expect in 2022.
Last-Mile Delivery Services
The pandemic provided a significant spark to the already growing e-commerce industry. As consumer behavior changed and online shopping increased, parcel delivery demand surged. Customers want their orders quickly, and they want to know exactly where their order is every step of the way. Last-mile (sometimes called final-mile) delivery is a term used to describe the last leg of delivering goods from a warehouse to the end customer. Logistics companies must heavily invest in tracking and route optimization tools to increase efficiency to keep up with this trend. Even after the pandemic passes us, e-commerce will never go away.
Supply Chain Visibility
According to Forbes, more than 90% of supply chain executives said that supply chain visibility is a key to their success. Although this isn’t a new trend for 2022, it becomes more vital each year. In addition to identifying trends early to prevent issues, visibility is required to provide good customer service. Predictive analytics, custom reporting, interactive dashboards, and control tower capabilities are all ways to increase supply chain visibility.
Focus on Returns Management
With the number of online orders increasing, it only makes sense that returns are also growing. When searching for a logistics partner, e-commerce sellers want a reliable and straightforward returns process. To provide a positive customer experience, a logistics provider must handle returns in large numbers, provide inventory management, and integrate with e-commerce platforms to process returns. Many companies will adopt new technology that streamlines this process to run returns management as efficiently as possible.
Conversion to Cloud-Based Systems
Cloud-based computing provides an upper hand when it comes to total logistics management. Although there are many effective cloud-based solutions in place, 2022 is expected to bring even more. Logistics companies can facilitate scalability, improve reliability, and increase security by utilizing cloud-based systems. For global logistics companies with users worldwide, a cloud-based system can help enhance back-office operations due to the collaboration and accessibility features it offers.
Autonomous Trucking Research & Development
While self-driving trucks may not hit the road in 2022, look for transportation companies to continue to invest in autonomous vehicle research. According to PitchBook, in the first half of 2021, investors put a record $5.6 billion into companies developing autonomous driving technologies. Logistics companies view autonomous trucking as a massive opportunity to reduce costs and increase efficiency. Even though it’s hard for trucking companies to keep up with demand, autonomous trucking can help alleviate the concern over driver shortages.
Staff Recruiting & Retention
In a tight labor market, it’s become challenging to find the necessary talent required to run logistics operations smoothly. This results in a lack of resources, postponed deliveries, strained relationships with partners and suppliers, and other challenges. The labor market shortage extends well past the logistics industry. The shortage has led many retailers to discover the value of a logistics partner that can take over cumbersome responsibilities such as storing, picking, packing, and other headaches. Addressing staff recruitment and retention is one of the global logistics trends to stay for the foreseeable future.
Sustainable Logistics Practices
Another notable trend in the global logistics industry is the advancement of sustainable logistics practices. In addition to benefitting us and our planet, it’s cost-effective, promotes a good brand, and increases customer loyalty. Most reputable logistics companies join sustainability partnerships and organizations that encourage cleaner fuel, more efficient equipment, and lower emissions. As we shift to 2022, look for even more businesses to lower their carbon footprint to align with this sustainability trend.
The future of the global logistics industry is constantly evolving. Over the past two years, we’ve learned that supply chain disruptions are inevitable, and you must plan ahead. As e-commerce continues to explode and new challenges arise, 2022 will be another year of advancements and innovations shaping the logistics industry.
Covid-19 and a global shutdown left the world ready to put 2020 behind us. Little did we know, 2021 would take us for another wild ride. As the pandemic lingered and gained strength in unexpected places, it continued to interrupt supply chains worldwide. Production bottlenecks, volatile swings in pricing, and massive capacity shortages were just a few of the issues that shaped the logistics and supply chain industry landscape in 2021. In this article, we look back at some of 2021’s supply chain issues and highlight some of the industry trends to look for in 2022.
The World Learned The Importance Of Supply Chains
A few years ago, your average person might not have been able to explain what “supply chains” are. Now, it feels like every time you turn on the news, that’s one of the topics you hear. A global shortage of materials caused prices to soar and projects delayed. Ports are congested, labor shortages in trucking have caused delays, a lack of warehouse capacity, and the list goes on. So much disruption happened in 2021 that you may have forgotten about the Suez Canal disaster. For just one year, that’s a lot to process.
Port Congestion Causing Severe Delays
As dockworkers contracted Covid-19 or landed in quarantine, loading and unloading at ports are constrained. The pandemic has sidelined truck drivers, limiting the availability of vehicles that can carry products from ports to warehouses to customers. Throughout the pandemic, consumers are purchasing goods rather than services. According to Bloomberg, retail imports set a record high for the United States in 2021. To understand just how clogged the ports were, the average wait at anchor (i.e., the number of days cargo ships waited outside the port) peaked at 20.9 days for the port of Los Angeles. In late December, there were 102 cargo vessels anchored in San Pedro Bay.
A Volatile Pricing Market
International shipping rates hit all-time highs in 2021. Ocean rates increased due to non-stop demand for ocean freight from Asia to the United States and a lack of capacity. Demand and congestion are the main drivers for sustained sky-high rates. To put the situation in perspective, international freight rates in August 2021 reached $10,174/FEU, a 466% increase on the previous year. Experts predict that prices may take two years to return to normal levels based on past market cycles.
Domestic Trucking Shortage
The American Trucking Associations estimated that in 2021 the truck driver shortage would reach over 80,000 drivers. There isn’t a single cause of the driver shortage. Still, a few factors that contribute to the problem are the high average age of current drivers (increased number of retirements), women making up only 7% of all drivers (well below the workforce average), and lifestyle issues such as the time away from home. Although driver pay and earnings have gone up significantly in the past decade, the problem of recruiting new drivers to the industry remains.
The Suez Canal Blockage
Although it felt like years ago, the Suez Canal debacle happened in 2021. Since its completion in 1869, the Suez Canal has become one of the world’s most essential seaways. This human-made waterway enables a more direct route for shipping between Europe and Asia. According to Reuters, about 12% of the world’s shipping traffic moves through the canal, so the blockage disrupted an estimated $10 billion worth of goods each day.
Natural Disasters Impacting Supply Chains
As if the world needed more supply chain disruptions, 2021 presented challenges out of our control. Hurricane Ida, the Texas winter storm, California wildfires, and significant flooding in Canada are just a few of the events that rattled supply chains across the globe. Hurricane Ida caused destruction and fuel shortages. The winter storm in Texas caused power outages and shipping delays. The California wildfires caused road closures. The floods in Canada caused railway and road damages. The point is, the logistics and supply chain industry had a wild ride in 2021.
Policy Responses
In 2021, the Joe Biden administration introduced proposals to address the ongoing supply chain disruptions. In June, the administration announced a supply-chain “disruptions task force” that created an agreement to operate the Port of Los Angeles 24/7. The task force enlisted freight companies to help move goods off the docks. Furthermore, the Transportation Department provided a $5 billion loan to modernize California ports. Later in the year, the President announced the Bipartisan Infrastructure Investment and Jobs Act. This $550 billion federal investment for America’s roads, bridges, water infrastructure, and more is the largest federal investment in public transit ever.
What To Look For In 2022
There is no indication that supply chain disruptions will ease up in 2022. Bottlenecks, labor shortages, and capacity crunches remain widespread as we begin the year. While nobody can predict precisely when supply chains will normalize, we can predict how shippers will adapt in 2022. Given that supply chains will continue to be stressed, companies must deploy real-time visibility platforms to monitor shipments at the order level. Having end-to-end supply chain visibility and advanced information on lead-time changes can only help navigate these challenging issues.
Understanding that supply chain disruptions are inevitable means that you must plan ahead. 2022 isn’t the year to wait and see if supply chains normalize. By embracing new trends and technologies, companies can minimize these disruptions’ impact on their business.
Logistics Plus has a new introductory video focusing on its Logistics Plus International Division (LPI) global logistics solutions. The 3:30-minute video, shown below, can also be viewed on the Logistics Plus YouTube Channel or on the Videos menu of the Logistics Plus website.
Ready for an international quote? If you have any questions, feel free to contact us with any global supply chain challenge!
Understanding how freight pricing varies by transportation mode can help determine the most cost-effective solution for your business. By learning the ins and outs of pricing variables, you can find ways to cut costs, increase efficiency, and avoid overpaying for services you don’t need. Quite frankly, determining the mode of transport is one of the most critical business decisions you can make.
Less-than-truckload (LTL)
LTL shipping refers to freight deliveries that are too large to ship via parcel but too small to fill an entire truck. LTL carriers sell multiple shippers space on the same truck and LTL shipments are often more complex to price than other modes of transportation. Pricing is calculated using several factors, including total weight, density, freight classification, distance, and accessorials.
Full Truckload (FTL)
Full truckload is used when a single shipper has enough freight to fill up an entire truck. Truckload rates tend to be the most simple to determine since they are based on a per-mile or flat door-to-door rate. Not surprisingly, capacity also has a major impact on full truckload prices.
Parcel
Standard parcel shipping has become one of the highest-profile sectors within the shipping industry due to the rise of e-commerce. Parcel is similar to LTL freight pricing. Cargo is priced by the pound, dimensions, and transit times. There are additional charges for packages that fall outside of certain dimensions or weight thresholds. Standard, first-class, and overnight options are usually offered for parcels which play a part in determining the price.
Airfreight
Airfreight is an often-used mode of transportation for time-critical shipments. Air carriers will charge by either volumetric weight (also known as dimensional weight) or actual weight, depending on which is more expensive. If the volumetric weight exceeds the actual weight of the product, the volumetric weight becomes the chargeable weight.
Ocean Freight In comparison to air freight, ocean freight tends to be less expensive. Charges are based on the nature of goods being transported, the weight or volume, distance to the destination port, and the rates set by the shipping carrier. Ocean freight prices also depend on the shipper’s decision to go with an FCL or LCL shipment. Full Container Loads (FCL) are best suited for large shipments, while Less than Container Loads (LCL) are more suitable for smaller shipments.
Rail/Intermodal
Rail and intermodal options tend to be the most cost-effective way to transport cargo. Rail containers are booked on a per-mile basis, similar to truckload shipping. Intermodal providers have agreements in place with railroads to transport cargo across the various rail networks.
Contact us to get started if you’d like to request a free quote on your next ground, air, ocean, or rail shipment. With over 25 years of experience, our team of experts is ready to assist you with your transportation needs.
Many companies can provide third-party global logistics services. Most of them have a single or few specialties, such as domestic transportation, warehousing, freight forwarding, audit and freight payment, etc. But with our 25+ years of experience, Logistics Plus is much more than a typical 3PL. We’re the company known for saying YES, not NO, to your unique supply chain challenges. We handle projects from start to finish by doing what other logistics companies can’t or won’t do – and you won’t be waiting on us. We operate leanly to be agile and responsive to your needs, yet we are large enough to have a network of solutions that span your entire supply chain.
We manage your logistics so you can focus on your core business.
Last-Mile Delivery Services
Supply Chain Visibility
Focus on Returns Management
Conversion to Cloud-Based Systems
Autonomous Trucking Research & Development
Staff Recruiting & Retention
Sustainable Logistics Practices
Covid-19 and a global shutdown left the world ready to put 2020 behind us. Little did we know, 2021 would take us for another wild ride. As the pandemic lingered and gained strength in unexpected places, it continued to interrupt supply chains worldwide. Production bottlenecks, volatile swings in pricing, and massive capacity shortages were just a few of the issues that shaped the logistics and supply chain industry landscape in 2021. In this article, we look back at some of 2021’s supply chain issues and highlight some of the industry trends to look for in 2022.
Port Congestion Causing Severe Delays
The Suez Canal Blockage
Understanding how freight pricing varies by transportation mode can help determine the most cost-effective solution for your business. By learning the ins and outs of pricing variables, you can find ways to cut costs, increase efficiency, and avoid overpaying for services you don’t need. Quite frankly, determining the mode of transport is one of the most critical business decisions you can make.