Day: November 25, 2017

Watch for Higher Freight Rates in Early 2018 As Carriers Negotiate Contracts

DJ Products Supplies Equipment for Shunting Trailers
DJ Products Supplies Equipment for Shunting Trailers

Chances are that your freight company will be doing a lot more semi trailer moving in 2018. Thanks to a number of industry trends and events, average contract rates are expected to increase in the new year by as much as 10 percent.

Manpower Shortages and Tight Capacities

A shortage of drivers is the most significant factor driving rate increases. According to Bob Costello, chief economist of the American Trucking Association, the number of drivers in the industry stands at only about 50,000.

– The driver shortage has also led to a crunch in capacity rates, which hit 90 percent in the second quarter and are approaching 100 percent with the impending holidays.

– There are fears that the December 18 deadline for implementing electronic logging devices to track service hours may cause even more drivers to leave the industry.

– Hurricanes Harvey and Irma have tightened capacity and pushed spot market rates up.

– The economy continues to become more robust, as indicated by 4.1 percent unemployment and three percent rise in GDP during the third quarter.

Solving the Driver Shortage

David Jackson, CEO of Knight-Swift Transportation Holdings, says the industry has been hurt by its dependence on baby boomers. The average age of drivers is in the mid-50s, and younger drivers aren’t entering the field quickly enough to counteract attrition.

Jackson suggests that raising pay rates is essential to attract new drivers. Andrew Lynch, president of logistics firm Zipline, adds that increased contract rates can provide the necessary funds to raise driver pay.

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Seven Important Trends that Are Shaping the Rail Industry Now and in 2018

DJ Products Supplies Railcar Movers.
DJ Products Supplies Railcar Movers.

The rail industry has been impacted by innovative equipment such as battery-powered railcar movers. Here are the hottest technology trends that are also shaping the direction of the rail industry for today and the future.

The Internet of … Trains?

As the Internet of Things (IoT) continues to expand, it’s becoming easier and more cost-efficient for passenger and freight services to gather and analyze data. Digital integration is now the norm rather than the exception.

Science Fiction Becomes Reality

Improvements in augmented and virtual reality are enabling solutions such as smart glasses, which let employees in the field transmit images to technicians and other staff back at headquarters.

There’s an App for That

Apps are the key to delivering a more personalized experience for rail users with functions such as booking tickets and offering updated schedule information.

Fighting Cyber-Crime

No industries are immune from hackers and cyber-crime. Rail companies face a two-fold threat from attacks on train operations and data collection.

Twice as Nice

A digital twin is a software model that replicates a physical object or system to allow simulation and analysis of real-world situations. Digital twins are particularly useful for rail companies to study and improve maintenance operations.

New Transport Options Emerge

Companies such as Uber and Lyft follow a model that leverages capacity without the need for major investment. How will the traditional transport companies respond to this challenge?

East Meets West

China has become a major player in the transport industry, and Chinese firms are expected to continue making strategic alliances with Western companies.

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