Transportation

E-commerce relies heavily on the trucking industry in the form of long-haul transport, then regional and urban transfers, and then finally “the last mile,” which is usually completed with vans and app-based delivery services. The dramatic expansion of e-commerce, and with it, distribution and last mile logistics, has been noticeably affected by volatility in the trucking industry.

After a decline last year on spending for trucking due to increased tariffs, unpredictability regarding trade with China, and new regulations, the total amount shippers spend on freight by truck and rail, and barge and air, is back on the upswing, according to the Cass Freight Expenditure Index. This spending is a function of price and volume, which has surged because of social distancing and a greater demand for e-commerce. As a result, long-haul trucking capacity is being stretched thin.

An increase in the number of road freight carriers is leading to greater traffic congestion and costly delays in the delivery of goods to end-users in business and consumer markets. However, intermodal infrastructures are improving, along with other advances in technology for managing complex supply chains that operate across various modes of transportation.