With the pandemic end in sight, trailer manufacturers are playing catch up and battling strong demand that is not being offset by high prices. Manufacturers orders are backed up several months and they are renegotiating pricing with consumers due to the volatile market. Trailers are reaching new highs, carriers and manufacturers are paying premiums to meet the demand, and consumers are biting the bullet on the back end.
COVID-19 has changed third-party logistics (3PLs) and forced companies to create new strategic relationships and partnerships with the final-mile logistics; in order to compete with Amazon’s same-day delivery services. The three main market sectors 3PLs and last mile delivery services can exploit to compete with Amazon are, ecommerce, medical lab logistics, and B2B freight.
The final-mile logistics is precisely what it sounds like, it’s the final step of the delivery process. When a product leaves the distribution center and is taken to the end-user or final destination. The last mile delivery market is expected to reach 44.88 billion in the next two years, with an annual growth rate of 14%. With 3PLs and last mile delivery providers joining together, they can compete against Amazon.
On May 7th, the Colonial Pipeline was paralyzed with a ransomware attack halting 45% of the East Coast fuel deliveries. With the Colonial Pipeline shut down, consumers began panic buying which had a major impact on the readily available supply of fuel. Read More
Over the past year, China has ramped up its energy production and committed to becoming a net-zero emission economy by 2060. While China has led all nations with renewable energy production, at the same time has increased coal production and offset the retirements in coal capacity from the rest of the world. The increase in coal production seems to have a strong correlation with the outcome of the COVID-19 pandemic and pushing China to retreat to easy and reliable fossil fuel. Read More