Did you know that freight shipping is a $7 trillion industry? And it's only going to continue to grow in the years to come.
That's why it's crucial for business owners to stay up-to-date on the latest freight shipping trends.
In this article, we will discuss five of the most critical trends that companies should be aware of in 2022. Keep reading to learn more!
Elevated Post-Purchase Customer Experience in 2022?
It's no secret that e-commerce has been rising in recent years. And as e-commerce continues to grow, so does the need for shipping.
In fact, it is expected that by the end of 2022, e-commerce will account for 22% of all retail sales worldwide.
This growth is primarily due to the fact that end consumers are becoming more comfortable with buying products online.
And as customer expectations continue to increase, companies must find ways to improve and maintain an elevated post-purchase experience for their customers.
Companies can do this by offering tracking information for all orders. Customers want to know where their order is at all times, and they don't want to have to wait days or even weeks for a response from customer service.
Companies can provide transparency and peace of mind to their customers by offering tracking information.
Offering different shipping options is another way to enhance the post-purchase customer experience. Consumers should be able to choose from various shipping methods so that they can find the option that best suits their needs.
For example, some customers may prefer a faster shipping method if they need the product right away. Others may select a cheaper shipping option if they are not in a hurry.
Sustainability is At the Top in the Logistics Industry Today
As we become more aware of the environmental impact of our actions, we're looking for ways to operate more sustainably. The freight shipping industry is no different. The shipping industry is contributing to sustainability in the following ways:
More Electric Vehicles On the Road
Electric vehicles are becoming increasingly popular, both among consumers and businesses. As battery technology continues to improve, we'll see more electric trucks and trailers on the road.
This trend will help reduce emissions from the shipping industry.
Increased Use of Alternative Fuels
Alternative fuels like natural gas and propane are becoming more popular as fuel prices rise. The fuel alternatives offer a cleaner-burning option for truckers, helping reduce further emissions from the shipping industry.
More Driverless Vehicles
Driverless vehicles are slowly but surely making their way onto the roads. While there are still some hurdles to overcome, we expect to see more driverless trucks on the street in the coming years.
The driverless car trend could help reduce accidents and improve efficiency in the freight shipping industry.
Shippers Becoming More Responsible For Emissions
As businesses become more conscious of their environmental impact, we'll see more shippers taking responsibility for the emissions generated by their shipments.
This could mean offsetting emissions through carbon credits or investing in clean energy projects.
Technology Improving Visibility and Efficiency
Innovative technology is an integral part of the shipping industry. We're seeing new tools and applications that improve visibility into the global supply chain and help businesses operate more efficiently.
The trend is expected to continue to shape the logistics industry in the coming years.
As businesses become more conscious of their environmental impact, we'll see more green logistics being adopted throughout the trucking industry.
Isn't this good news for the environment and for the future of shipping services.
Shipping Automations That Are Trending in 2022
In a recent study by Blue Yonder, they found that 43 percent of retailers plan to increase their use of shipping automation in 2022. Shipping automations that are trending are as follows:
1) Dynamic Routing
Dynamic routing is the ability to automatically reroute shipments based on current conditions such as weather, traffic, and construction, helping you save time and get your cargo to its destination without delays.
2) Shipment Tracking
This automation allows you to track your shipment in real-time, so you know exactly where it is and when it will arrive, giving you peace of mind and helping you plan your logistics accordingly.
3) Inventory Management
Inventory management helps you keep track of your inventory levels so you can always have the products you need in stock. It will save you time and money by avoiding overstocks or stockouts.
4) Freight Optimization
When it comes to helping you choose the most efficient and cost-effective shipping options for your needs, freight optimization comes in handy. It can save you money on freight shipping costs and help you get your products to your customers faster.
5) Route Planning
Route planning is helping many companies plan the most efficient route for their shipments. This can save time and money by avoiding delays and quickly getting products to their destination.
6) Data Management
All the data associated with your shipments, including tracking information, invoices, and manifests, should be adequately managed for you to keep track of your freight and make sure everything is in order.
7) Customer Management
In the shipping industry, customer relationships are key. Tracking customer orders, contact information, and shipping preferences keeps your customers happy and keeps them coming back for more.
As you can see, shipping automation is becoming increasingly popular and will likely continue to grow in popularity in the years to come.
If you're not using shipping automation yet, now is the time to start! It can save you time, money, and hassle in the long run.
Relying More On Machine Learning
Supply chain management (SCM) is the process of organizing the movement of resources between different parts of a company or network.
In recent years, SCM has been relying increasingly on machine learning (ML).
Here are five ways ML continues to shape SCM in 2022 and beyond.
1) Reducing the Need For Manual Data Entry
Manual data entry is an integral part of shipping. Unfortunately, it's time-consuming and often inaccurate. But machine learning is changing that.
Machine learning algorithms are able to observe and learn from data more effectively than humans, automating many of the tasks that previously required human input.
ML is reducing the need for manual data entry in shipping and making the process more efficient.
2) Help Improve Forecasting Accuracy
Forecasting accuracy in freight shipping is a difficult task that has traditionally been done by humans.
However, recent advancements in machine learning are beginning to change that. Machine learning algorithms are able to process large amounts of data much faster than humans and can identify patterns that are difficult for us to see.
The technology is providing a significant boost to the accuracy of freight shipping forecasts.
3) Helping to Optimize Inventory Levels
Thanks to machine learning, logistics companies are able to optimize inventory levels because ML can analyze data on past sales, production schedules, and market behavior and accurately predict demand and prevent stockouts.
As a result, businesses can run more efficiently, and customers can experience fewer disruptions.
4) Streamlining Transportation Planning
The shipping industry is increasingly turning to ML to streamline transportation planning. By using algorithms to analyze large data sets, machine learning can help shippers predict where demand will be and optimize routings accordingly.
Streamlined transportation planning provides a significant advantage in an industry where timeliness and efficiency are essential.
5) Improving Customer Service
ML allows computers to learn from data, identify patterns, and make predictions. Machine learning can help predict delays, disruptions, and other issues that might affect a customer's shipment by analyzing data from past shipments.
The information can then be used to alert customers and customer service representatives of potential problems proactively and to suggest solutions.
As ML technology continues to evolve, we can expect even more innovative applications of this powerful tool.
Manufacturers Are Re-Shoring Their Supply Chains
The trend of re-shoring or bringing manufacturing and other logistics operations back to the home country has been gaining traction in past years.
There are several reasons for this, including:
Reduce Shipping Costs
The trend of re-shoring supply chains is reducing costs in shipping.
The return to domestic manufacturing is driven by several factors, including the desire to reduce offshore labor and production costs, improve quality control, and the need for quick turnaround times.
The result is a smaller carbon footprint and increased efficiency in the shipping industry.
Improve Quality
When supply chains are re-shore, companies are able to optimize their shipping processes and make sure that each shipment is of the highest quality.
By bringing manufacturing back home, companies can improve the quality of their products.
Reduce Risk
A supply chain is vital for any business today. It helps a company to move its products and raw materials around the world in a timely and cost-effective manner.
However, a supply chain can be vulnerable to disruptions, which is why wise businesses are re-shoring their supply chains.
By bringing an auto supply chain industry closer to home, businesses can reduce the risk of disruptions from geopolitical events and keep their products moving smoothly.
Improve Agility
The time it takes to ship goods from overseas has been lengthening due to many factors, including shipping congestion at ports and increased security checks.
This has made offshore manufacturing less agile and less able to respond to changes in demand. By bringing manufacturing back home, companies can be more responsive to changes in market trends.
Support Sustainability Initiatives
Re-shoring supply chains can help support sustainability initiatives in shipping services. Working with local suppliers allows shippers to reduce their carbon footprint and positively impact their community.
In addition, re-shoring supply chains can boost the economy by creating jobs and supporting local businesses. The result is a win-win for everyone involved and something that all freight shippers should consider as they look for sustainable solutions.
Wrapping Up
The shipping industry is constantly changing, and it can be challenging to keep up with the latest trends.
However, by understanding the trends that are shaping the industry, you can be better prepared for the future.
These five freight shipping trends are sure to have a significant impact in 2022 and beyond. So make sure you stay ahead of the curve by keeping them in mind as you plan your shipping strategy.
Do you have any questions? At A-1 Auto Transport, we are committed to providing you with up-to-date information and reliable, affordable, and stress-free auto shipping services.