There is a misnomer that freight shipping is efficient. In fact, it is NOT efficient. Studies have shown that 96% of LTL shippers experienced one to four-day delays on shipments. 50% plus truckloads are also moving at less than max capacity.
The landscape of shipping is changing. Flock Freight®, an innovative technology company has stepped to the plate to reinvent freight shipping with the use of its patented shared truckload service. They have partnered with Drive Research to release a fascinating 2022 research study, “Inefficiency – not just the labor shortage – is breaking supply chains,” The study showcases how shippers in the US have struggled to ship over-the-road freight because of rising costs, underutilized trailer space, delivery delays, and size restrictions.
Yes, the COVID-10 pandemic fueled a logistics nightmare. The crisis ended up crippling supply chains worldwide and pushing shippers to the limit of their endurance as consumer demand burgeoned. However, the crisis has now burned down to a slow fizzle and the supply chain remains in a state of semi-crisis with port delays and driver shortages. Supply chain disruptions continue to reemerge, and many are left scratching their heads in confusion. What is the problem? It’s been TWO years! Honestly, the trucks and dockyards are moving less than maximized loads Nothing is operating at capacity.
Oren Zaslansky, founder and CEO of Flock Freight stated in an interview: “The supply chain issues we saw during the height of the pandemic continue today and act as proof that shippers and carriers are an essential piece in keeping the economy and our lives running, These survey results – from shippers experiencing these disruptions first-hand – are very telling that traditional shipping methods are not enough to keep trucks running. Flock Freight’s shared truckload technology enables shippers to move their freight faster, cheaper, and with less damage than the traditional shipping methods that have so-far shaped our supply chain.”
Traditional shipping methods are causing problems.
Partial truckload (PTL), truckload (TL), and less than truckload (LTL) experience:
- Increased fees
- Shipment delays
- Late deliveries
- One in two shoppers pay for air due to underutilized truckload shipments
- Shippers incur accessorial fees costing shippers on average $411,239 to $900,000 per year.
- $566 in one time in full fees are being charged for each shipment.
- Goods arrived damaged
- 1 to 4-day delays and some 5 to 6-day delays
- Some shippers will not send a shipment until they fill an entire truckload trailer which causes delays.
- Over half of the truckloads are moving half empty.
For more information on the current state of the supply chain contact Sobel Network Shipping Co. Inc.
