Author Archives: uscargolink

Slowing demand, and the stagnation of the U.S. economy, has started to reduce the cost of shipping rates nationally. The reduction in transportation costs has caused some companies to renegotiate their existing shipping agreements, after a surge in pricing caused by the pandemic.

This is good news for commodities producers and retailers, because after two years, they are starting to get some relief. Rates shot up to nearly $8,000 per container between June 2021 and June 2022, according to Norwegian transportation data firm Xeneta.

This does not mean that shipping rates have returned to pre-pandemic levels, however. The rate of shipping a container from China to the West Coast of the US was more than four times higher in July than the rate of the same service in 2019, according to freight marketplace Freightos. One thing stopping rates from returning to their pre-pandemic levels is still the congestion in the system, primarily noticeable on U.S. rail systems.

According to American Shipper, the Eastern and Gulf Coast ports will see a traffic surge in the coming months. The number of Asia-East Coast services per month rose to 28 in March, with an expected 30 in May. Deployed capacity of services is projected to reach 889,000 twenty-foot equivalent units in the month of June, up 40% from the 2021 average, and 56% from 2020.

“The shift from West Coast to East Coast ports can be attributed to congestion in said West Coast ports”, says the McCown Report. Shippers have elected to change routing directions in favor of East/Gulf ports due to their proximity to a good majority of the US population as well. The calculated three-month trailing average of year-on-year volume changes shows that East/Gulf ports were growing faster than West Coast ports even before the pandemic, and that congestion in the western ports has only accelerated East Coast traffic.

Urbanization is creating a huge disruption in the trucking industry. A lot of areas are moving towards urbanization which is increasing the accessorily of trucking of trucking companies. Due to this there has been an increase in customers that will undoubtedly help trucking companies generate more business and grow rapidly.

The growth of E-commerce has also been a huge contributor to urbanization and the pandemic is only acerated because so many people were mostly indoors. E-commerce has also contributed to people realizing the relevance of supply chain and how important it is.

US Cargo Link has been in this industry for over 25 years and offers comprehensive logistics solutions which includes Trucking, Warehousing, Cross-docking , Freight Consolidation ,Air and Ocean Freight etc. . 3PL companies also help takeaway a huge chuck of responsibilities from companies making it easier for this companies to focus to other important tasks and also ensuring customer satisfaction.

The last mile delivery market is set to grow tremendously in the next few years despite the pandemic in 2020. Many companies to improve customer satisfaction have started to adopt last mile delivery.

It is predicted that the United States is estimated to see a growth rate of 16% between 2021 and 2025.One of the primary reasons for the growth in this market is the growing B2C e-commerce industry in the US.

Companies like US Cargo Link play a very important role in the last mile delivery process moving smoothly. They can manage complex partnerships as well as use cutting edge technology in the most beneficial manner.

As the complexity and competition increase, last mile players need to leverage their key strengths to provide utmost customer satisfaction and build long term relationships.

Supply chain and logistics is an integral part of any business to sustain. A huge chunk of the fundamental functioning of any business depends on the smooth movement of their logistics and a strong supply chain network.

Several businesses handle their logistics activities in-house but with the demand rising and trending innovations in the world of supply chain many companies outsource their logistics activities like Packaging, Freight Consolidation etc. to third party logistics companies.

The spread of Supply Chain as a Service has proven to be extremely beneficial for companies as well as their customers. Companies that have adopted supply chain as a service and have seen tremendous increase in their business. In today’s era, choosing to adopt supply chain as a service gives companies more time to focus on other major activities of their business-like customer service, sales, strategic business planning etc. Also, with the shortage and rising cost of human labor -outsourcing their logistics activities will prove to be extremely effective.

Third party logistics companies like US Cargo Link help business focus on their other major business functions by taking over the company’s logistics activities like Warehousing, Cross Docking, Transloading, Trucking etc. Not only that, but they do also more than just moving freight. They provide package tracking, smooth client communication which ensures great customer satisfaction.

It is very important for companies to keep updated and adopt to the latest trends in the industry. This will not only help enhance their productivity but also make them extremely efficient in the long run.

Ecommerce has become such a prominent part of everyone’s day to day to life in some way or the other. Ecommerce has made shopping such an easy process that a huge chunk of population depends on it for almost all their day-to-day needs.

The pandemic has been a huge contributed to accelerating the growth of ecommerce companies. Many Organizations have realized that if they don’t start adopting the digital route of selling products, they won’t be able to survive amongst the huge ecommerce giants.

Some of the main reasons why people prefer shopping online are:
❖ Less-time consuming
❖ Cost-effective
❖ Convenient

The growing demand in the ecommerce space has made the role of supply chain very crucial. Companies can benefit in different ways by working with 3rd party logistics companies. Outsourcing a bulk of their logistics responsibilities like warehousing, transportation etc. gives a lot of space to companies to focus more on their marketing and sales.

3 PL companies not only take away a huge chunk of logistics responsibly from the company’s side but also aids in improving customer service by providing on-time delivery and great quality service.

To conclude, the relationship between ecommerce and supply chain is very interrelated. The increasing popularity of ecommerce is resulting in an increase in demand for 3 PL companies and has also bought a lot of awareness around the importance of supply chain.

Post covid – there has been a huge magnitude of change that has come into the logistics and supply chain industries. Companies are looking to move freight more than ever because of the surging demand in various industries.

As we all know, supply chain and logistics connect different industries and companies making it one of the key elements for any industry to function smoothly.

With the rising demand for logistics in different industries, its high time companies adopt sustainable supply chain management. Environmental supply chain management and practices can help organizations not only reduce the total carbon footprint but also achieve profitability and greater cost savings.

To sum it up, some of the key reasons why companies must adapt to sustainable supply chain management are:

• In depth research and experience has proven that over time it reduces financial costs and improves profitability.
• Governments are recognizing companies that adopt sustainable practices and awarding them with various tax benefits.
• Consumers have started to recognize the importance of sustainable supply chain management which is driving revenues because of the increase in sales.

To conclude, supply chain having such a large network and so many various elements -if more companies start adopting the sustainable model its benefits with the regards to the environment and the future of the world is endless.