Truckload logistics and truckload freight are big, multi-billion dollar industries in the United States. Shipping managers, distributors and manufacturers all have to deal with the matter of getting their goods from Point A to Point B, and they need truckload logistics to accomplish that objective. As a result, the truckload shipping market, and LTL market is worth an estimated 35 billion dollars.
Truckload logistics operate on an enormous scale, with a huge scope. The value of freight is very high and the number of vehicles used to transport product are astronomical. The statistics are impressive: the value of freight moved, according to the U.S. Department of Transportation, is measured per ton. The estimated value in 2007 was $882 per ton, and that is estimated to climb by 2040 to nearly $1,377 per ton.
In addition, the number of vehicles involved in truckload logistics are staggering. It has been reported that the number of vessels, locomotives, rail cars and trucks moving product within the transportation scheme and network total almost 12 million. These statistics show the critical role of transportation shipping services in the economy.
And what are they moving? Electronics, machinery and motorized vehicles moved by the U.S. freight transportation system are three most valuable commodities moved.
So, if you are a manager in charge of shipping your product—whether it is global aerospace logistics, pharmaceuticals transportation or industrial machinery parts replenishment, for example, you are going to want to know how much it will cost to ship your product. Many factors determine the price of a haul. Weight, length of haul and shelf life of product are all contributing factors.
But there is one interesting statistic from Satish Jindel, President of SJ Consulting Group, about truckload logistics. It has been reported by public truckload carriers that between 2011 and 2016, the average length of haul has decreased by 4%. The hauls are getting shorter, it appears.
There is a difference between LTL shipping and FTL shipping, and the difference is very basic. FTL stands for “full truckload”; that is, a truck that is filled with product from one source (manufacturer or distributor). LTL shipping, on the other hand, means “less than truckload”-making it a sort of ‘carpool’ carrier of different product from different sources, with the managers sharing the price of the ride in the truck. (Think of it as sharing a taxi and splitting the fare among the riders.)
In conclusion, truckload logistics are a sound economic base in the U.S. Spending in the U.S. logistics and transportation industry totaled $1.48 trillion in 2015, and represented 8% of annual gross domestic product. Clearly, there is an option for every business to find the truckload logistics that best fits their needs.