E-commerce’s impact On trucking has been shown recently with the amount of products bought online. Even before the coronavirus pandemic, e-commerce meant that the logistics for cargo movement would change. It became possible for a customer to purchase goods from the comfort of their own home instead of driving to a local store. In the last few years, COVID has increased e-commerce’s significance further. There was a record-breaking surge in the volume of products available for online buyers. The U.S. Department of Commerce notes that e-commerce sales in the U.S. rose over 30% from 2019 to 2020. The shipping industry generally feels the effect of the growth, specifically in domestic transport.
What is E-commerce’s Impact On Trucking
The most significant impact of e-commerce in trucking is increased demand for cargo movement. The American Trucking Industry reports that more than 70% of U.S. goods require truck transport. Consumer products, including online goods, comprise a large part of the shipments. As e-commerce grew, so did the need for trucking for shipping freight. A specific type of trucking that online shopping affects is LTL shipping. The products bought online tend not to require a full truckload when transporting. Smaller and more frequent shipments from e-commerce businesses mean a greater need for LTL services. E-commerce has also influenced trucking by growing the importance of the middle mile.
The Middle Mile
While different from first-mile and last-mile delivery, the middle mile is just as important. Unlike last-mile transport, the middle mile is the step in the supply chain before the goods reach the final destination. This could mean freight delivery from seaports to warehouses or fulfillment centers. Moving goods from fulfillment centers to warehouses is also considered the middle mile. Companies with e-commerce services tend to focus on middle-mile logistics. Goods that a customer orders online have to move from warehouses and fulfillment centers to retail stores.
E-commerce grows a focus on middle-mile logistics by creating a need for more excellent optimization. This can mean better visibility, quicker shipping times, and smoother transport, which is crucial for a perfect supply chain. For example, if there is a delay in the middle mile, the delivery of the shipment may be late. E-commerce also increases customer expectations, meaning the need for quicker delivery times. To reduce pressure on the last mile, businesses look for ways to improve the middle mile. This can mean adjusting similar truck routes to be faster and more fuel-efficient or adding automation.
A1 Freight Solutions
A supply chain is a logistics system of different components that work together to get goods from start to finish. One of the most common parts of most supply chains is trucking. In e-commerce, trucks move the products to the final destination after they order online. Even when companies must ship internationally by water or air, carriers pick up containers from ports. If you need to move freight domestically, contact A1 Freight Solutions at 786-375-9420 for a quote. Whether you have middle, first, or final mile logistics needs, our trucking services are here to help. We handle your transport so you can focus on the rest of your supply chain.