Transportation management systems (TMS) play an increasingly important role in the economy of not only this country, but the world. As consumers order more and more of the products that they want on line, in fact, TMS systems are required to not only get supplies to traditional retail locations, but also make sure that individual online goods are delivered to individual consumers as well. As a result, there is an increasing market for advanced transportation broker software, and various types of transportation broker software platforms. In an effort to make sure that the nearly 12 million trucks, rail cars, locomotives, and vessels efficiently move goods over the transportation network, it takes close attention to detail of warehouse space, delivery times, and correct calculations of expedited shipping fees.
With the use of the latest TMS systems, transportation brokers can help manage the increased volume of products that need to be shipped to individual consumers and delivered to retail locations, often with a stop in a warehouse storage location. Although large semi trucks carry the largest share of freight by value, tons, and ton-miles for shipments moving 750 or fewer miles, rail remains the dominant mode by tons and ton-miles for shipments moved from 750 to 2,000 miles. And while it might seem simple to assumer that trucks handle the shorter shipments and that trains handle the longer shipments, the real challenge comes in making sure that all of these shipping containers are as full as possible.
Less than load (LTL) deliveries are more complicated and costly, so it takes a knowledgeable broker to be able to use TMS systems to make sure that all deliveries are as efficient and affordable as possible. Consider some of these additional facts and figures about the transportation industry and the impact that it has on the nation’s economy:
- The value of freight moved is expected to increase from $882 per ton in 2007 to $1,377 per ton in 2040, according to the U.S. Department of Transportation.
- The LTL market alone is estimated at approximately $35 billion.
- 5.9 million commercial motor vehicle drivers operate in the U.S., according to the Federal Motor Carrier Safety Administration.
- As companies work with a growing number of distribution centers, the length of haul has declined, according to Satish Jindel, president of SJ Consulting Group. In fact, public truckload carriers report that the average length of haul has decreased 4% between the years 2011 and 2016.
- Currently, U.S. e-commerce revenue is about $423.3 billion and is steadily climbing. As carriers are being forced to adjust to changes in the retail industry, the transportation industry is continues to look at the most effective ways for delivering full truckload, less-than-truckload (LTL), and parcel shipments.
The transportation industry is a complicated web of goods that are shipped both around the world and across the country. Making sure that your company has the right personnel to manage the latest transportation software platforms can help your business succeed even during times of transition.