American consumers are not only particular about what they want, they are also particular about when they get what they want. As a result the expedited freight industry is growing by leaps and bounds. From the President tweeting about the deal that a major online retailer has with the U.S. post office to the fact that many companies offer free shipping if their customers order a predetermined amount of goods, expedited freight costs are important. So important, in fact that consumers now not only look at product prices online, but that they also compare the shipping cost options that are available.
Expedited trucking transportation services are now a part of almost every major industry. From pharmaceuticals transportation deadlines for recently manufactured and dated materials to specialty freight services for the delivery of large items, the costs of shipping are an important part of pricing structures across many industries. As an indicator of how big an impact has on the nation’s economy, you only need to see the latest research. For instance, spending in the U.S. logistics and transportation industry reached as high as $1.48 trillion in the year 2015. This number represented as much as 8% of annual gross domestic product in the country.
One of the reasons that shipping plays an important role in the cost of products is that not every delivery can be a part of a full delivery. For this reason there is an entire delivery industry that focus on less than truckload (LTL) shipping. In fact, the LTL market is currently estimated at nearly $35 billion. The logistics of making sure that these LTL deliveries are completed as efficiently and affordably as possible is important to the overall success of many companies.
Consider some of these other statistics about the transportation and delivery industries and the impact that they have on the nation’s economy:
- Data indicates that there are 12 million trucks, rail cars, locomotives, and vessels that move goods over the transportation network.
- Estimates indicate that U.S. e-commerce revenue is about $423.3 billion and is steadily climbing. Whether it is full truckload, LTL, or parcel, carriers are being forced to adjust to changes in the retail industry and the fact that many companies no longer have one centrally located warehouse.
- Lately, in fact, there are a growing number or retailers who fill their orders from brick and mortar retail locations across the country, not large warehouses.
- Industrial machinery transport services cost play an important role in the prices that large consumers pay for the products that they need.
- Very few delivery costs are truly free. In almost all cases, the cost of the “free shipping” is already figured into the price that is offered to the consumer.
- Electronics, machinery, and motorized vehicles are the three most valuable commodities moved by the U.S. freight transportation system today.
- Research from the Federal Motor Carrier Safety Administration indicates that approximately 5.9 million commercial motor vehicle drivers operate in the U.S.
- Yearly costs for expedited freight deliveries are also influenced by the cost of fuel.
Today’s consumers are not only shopping for the products that they want online, they are also shopping for the DELIVERY charges that they are willing to pay. In fact, the prices of online shopping are significantly affected by transportation and delivery charges.