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Wednesday, January 19, 2022
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Key Issues on the Logistics of Transportation

Growing fuel prices increased wages, and peaking inflation indexes all work in tandem to increase transportation costs daily. Cutting a few corners here and there does not always help in meeting the cost-cutting goals for transportation. Adopting a strategic approach to eliminate or reduce bottlenecks can prove pivotal in revamping network designs and consequently cutting down on transportation costs. To implement these strategies well, logistics managers need reliable information on existing and future orders. Using a visibility software can help in simplifying these challenges.

Image Taken From https://www.logisticsmgmt.com/article/top_8_logistics_challenges_facing_the_industry

For a small business, relying on a cost-effective third-party transportation agency that caters to air, ocean, rail and road transportation is sometimes the best bet for accessing quality services in a cost-effective manner. For one, it rules out the added expenditure of maintaining a fleet of delivery vehicles, paying salaries to the transportation staff as well as dishing out freight charges and other taxes.

Fuel Cost

One of the highest costs contributing to the ‘cutting transportation cost’ concern is fuel prices. Higher fuel prices are likely to increase transportation costs for US shippers this year by pushing up fuel surcharges. Rising US diesel fuel prices are escalating surcharges added to freight rates, which is reversing a two-year trend that cut into the revenue and earnings of truckers as fuel prices plummeted. With high fuel prices comes a greater credit crisis and rising inflationary demands that take a greater toll on the US economy.

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Yip Chee Ming, DLSM
Yip Chee Ming has substantive experiences in the professional field of Warehousing and Logistics industry, specifically in the Logistics services sector. He is a member of the Singapore Institute of Purchasing and Materials Management (SIPMM). Chee Ming completed the Diploma in Logistics and Supply Management (DLSM) on September 2019 at SIPMM Institute.

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