Nebraska & Iowa Overnight Air Freight News

Amazon Ambitions Could be a Nightmare for FedEx and UPS

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We keep up with the shipping industry being experts in overnight air freight ourselves. The future looks interesting for the shipping industry as Amazon appears to be positioning itself as its own freight broker.  They have not officially announced plans to do so, but the writing seems to be on the wall.

Large Investments in 2017

None of this is a secret, it’s pretty hard to keep jet planes under wraps. In 2017 Amazon spent a whopping $13.2 billion on warehouses and other logistical buildups in North America. That’s five times what they spent in 2015. FedEx and UPS in comparison each had around $5 billion in capital spending in 2017. This spending pattern seems to fit with Amazon’s unstated philosophy: when it sees business opportunity it goes all in, and wins.

More Evidence

Amazon.com registered with the Federal Motor Carrier Safety Administration as a freight broker on March 4, 2016, doing business as Amazon Logistics Inc. Transcredit reported that Amazon Logistics first acted as its own freight broker in August of 2017. It brokered a second load in October and a third in November. In addition, Amazon Logistics also registered with load board DAT Solutions on March 30, 2017. In January 2016, the Federal Maritime Commission granted Amazon’s request to become its own nonvessel operating common carrier and freight forwarder. This allows them to directly negotiate rates and secure capacity with ocean and airfreight carriers. The maritime industry is now wondering to what extent Amazon will try to take control of transportation shipments headed for Amazon warehouses. Taking greater control of shipments would give Amazon more flexibility and help it avoid warehouse congestion.

Currently, companies like Maersk are handling these shipments. The pressure from Amazon could be a good thing though, because Maersk has upped it efficiency in response to the threat. In 2014, it took more than 2 hours to complete a container booking with Maersk. In 2016, the average went down to 22 minutes. Management aims to bring that down to as little as 2 minutes in 2018. Competition makes us better.

Ultimately Amazon is on a quest to cut out the middleman and ensure the best customer experience possible. Who can blame them? It’s just good business. We’ll see how it plays out in the coming years.

Tesla Semis to Transform Transport

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If you’re in the freight forwarding industry – or even if you’re not – you’ve likely heard of the Tesla Semi. This new semi is touted to be among the safest, most comfortable, most efficient and most powerful trucks on the road today.

In just one month, Tesla has taken orders from many major distributors and manufacturers, including 40 by Anheuser-Busch, 100 by PepsiCo Inc., 50 by Sysco Co. and 15 by Wal-Mart Stores Inc., according to Transport Topics. Bloomberg projects that electric trucks will reach a 25% market share in 2025.

Tesla’s semis will reduce emissions with its clean technology, but is most appealing because of its cost and power. It’s estimated to be 70% cheaper and is said to have more torque than diesel. And while distance at this point is a constraint for Tesla semis, they are working on it.

The electric rig is driven by sustainability and carries many long-term benefits for freight forwarders. But what about the congestion on the roadways and delayed transit time due to collapsing infrastructure? Stay tuned for continued talks of underground tunnels…

With the rise of electric rigs, expedited freight forwards are needing to adapt to new technologies and demands. Our expedited freight industry will be on the forefront of using electric technology, especially for our first and last mile services. How this will change overnight air freight, hot shot expedited freight and the carriers who work tirelessly to deliver goods on-time, we must wait to see in the coming years.

Meeting Challenges with Overnight Air Freight Services

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As e-commerce and online shopping become the norm in many households, the need to ship goods across state lines, across the country and across the globe has created a global increase in need for expediated freight and overnight air freight.

Air freight carriers can expect record volumes over the holiday season, as in the years to come, as e-commerce is fueling the buying habits of much of the country. At Distribution By Air, we work together with carefully selected carriers, helping our customers plan with certainty and efficiency.

The need for overnight air freight arises with time-sensitive cargo. And when time-sensitivity is in play, the need for a well-connected logistical team is critical. Many supply chain challenges face today’s manufacturers, due to the evolution of e-commerce, mobile technology, the labor force and logistics site selection.

Working with our team at DBA for overnight air freight gives you the advantage in the overnight air market and opens endless possibilities for same day shipments. Whether your need falls under commercial passenger freight or heavy cargo, our logistics team can find a solution to fit your need.

Shifting Logistics Revenue for 2017

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Numbers from the summer’s logistics earnings are coming in, indicating that many third-party logistics firms capitalized on freight transport this summer. However, the cost of trucks was a deterrent to profit.

Major logistics companies are projected to grow in revenue year-after-year for the foreseeable future, but are expected to also show declining earnings. Contract rates are causing a significant decline in profits, cutting into shippers’ margins. Larger logistics companies who do more spot business will likely see increased revenue and profits.

As a result, shippers should be working in close partnership with brokers for increased profits. The need for an expedited freight forwarder with experience and connections is increasingly important. It’s unclear how many logistics companies will handle contract brokerage for next year.

At Distribution by Air, overnight air freight and expedited freight forwarding is our expertise. We are keeping a close eye on how business will trend for the remainder of this year, into next year – continuing to offer the best rates with on-time delivery.

Transportation Affected by Harvey and Irma

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Transportation – both air and ground freight – are affected by weather. From ease of mobility to cost, natural disasters, like the 2 recent hurricanes to hit the US, affect overnight air freight and expedited freight.

And while the trucking industry was still digging out from effects of hurricane Harvey, Irma created more challenges. Truckload prices increased post-Harvey as the number of trucks available to carry loads shrank, according to DAT Solutions. And a recent article from TRUCK.COM indicated that spot rates went up 5.5 percent nationwide, while number of loads fell by 10 percent due to the loss of about 72 percent of outbound loads from Houston. Additionally, rates around the country increased.

Now, post-Irma, spot rates continue to be on the rise as efforts to rebuild in Florida and Texas are underway. Industry-wide, rates could rise by 5 to 7 percent in the next few weeks as trucks attempt to bring supplies into parts of Houston and the Southeast hit hardest by Hurricanes Harvey and Irma.

Natural disasters are difficult to plan for. Logistics experts at Distribution By Air in Nebraska are able to solve air freight and ground expedited freight challenges during these difficult circumstances. For the best rates and ease of execution, contact our hot shot expedited shipping experts today!

Air Freight Basics

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Overnight air freight can be pricey and logistically challenging, but many times is necessary. It’s quick, reliable and customizable for many unique needs. And while air freight can be expensive, there are many benefits that outweigh the cost.

At Distribution By Air, air freight is our specialty. Whether overnight or a less immediate deadline, our logistics experts can help assess if air freight is the most ideal transportation method. With our air freight expertise, you can experience many benefits that will offset the high cost of air freight, including lower inventory carry costs and the opportunity to capture higher market share.

If done successfully, air freight may not only reduce costs, but can promote efficiency – as any strategy can be customized to fit your needs. The primary freight options include overnight air freight, consolidated shipping and deferred shipping.

Air freight is complex, and with our experience and connections DBA can provide fast, on-time delivery for any product. Give us a call to find out how we can help!

ATA Forecasts Continued Growth, Freight Forwarders Rise to Meet Challenge

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This month, the American Trucking Association released its forecast for the next 10 years, predicting continued growth for transportation through 2028.

ATA forecasts freight volumes to grow 2.8% in 2017 and 3.4% annual growth through 2023. After 2023, ATA projects a more modest growth rate of 2.3%. In 2017, ATA projects that 15.18 billion tons of freight will be moved by all modes – a figure that rises 36.6% to 20.73 billion tons in 2028.

This growth will create demand – a demand our Nebraska expedited freight forwarders are prepared to meet.  With a mature economy where immense growth is likely the trucking industry and freight forwarders must rise to meet the challenges ahead.

When on-time delivery is critical or unique shipments are challenging to execute, our freight forwarders at Distribution By Air in Nebraska are equipped and connected to get the job done. And while overnight air freight is always an option, often ground expedited shipping is necessary.

Our trusted team can help deliver your product, despite challenges and obstacles. Allow our logistics experts to earn your trust and exceed expectations now and through this intense season of predicated growth.

Expedited Freight Forwarders for On-Time Delivery

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Many times, the need for overnight air freight or hot shot expedited freight is obvious. Moving goods in a time-sensitive and customized manner requires a team of logistics experts not found in any main stream courier delivery service. And overnight air freight and expedited shipping experts like those at Distribution By Air (DBA) are the best way to deliver!

An expedited shipping service provides many unique options and is an ideal choice for shipments that require special care. Time-critical and expedited services provide solutions that give you the supply chain efficiency you need to solve time-sensitive logistical challenges. And with an extensive network and countless freight forwarder options, expedited shipping service providers at DBA in Nebraska can ship any piece of freight at a reasonable price with on-time time delivery.

With no-room for error, our Nebraska air freight and expedited freight forwarder experts can successfully tackle any job. So, whether your freight needs fast delivery, or it requires a specific date and time of delivery, our network of carriers can deliver your freight successfully and timely.

Proposed Fuel Tax Increase for Improved Infrastructure

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In recent news, the Secretary of Transportation announced a potential increase in federal fuel taxes to help fund infrastructure – raising gas and diesel taxes, affecting expedited freight forwarders and all in freight transportation.

The federal fuel tax rate is 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel fuel. The tax is not indexed for inflation and has not been raised since 1993. And despite increased costs, representatives of the railroad and trucking industries appear to be supportive of the suggestion, according to Transport Topics.

As a user-based funding source, the increased fuel tax could benefit the transportation industry over the long-term. Freight transportation did not have its own budget until the 2015 FAST Act, though many industry leaders in freight would argue it’s not enough to work through the current list of projects and fund needed infrastructure in the future. This user-based system will provide a more sustainable funding stream outside of the federal highway funding.

Better infrastructure, provided by industries working together to fund projects for the common good, allows for a more incentivized community. Well-maintained infrastructure allows for our expedited freight forwarder company to deliver safely and on-time. We are seeing long overdue highway improvement projects causing traffic delays and congestions on major highways. We know that these improvements will eventually mean safer and better roads.  A raise in the fuel taxes will affect the short-term but the long-term benefits will be exponential. We will continue to watch as Congress works to gain support for this tax increase.

 

 

Shipping Rates for On-Time and Affordable Expedited Shipping

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Expedited shipping allows our DBA customer base to meet strict changes and needs demanded by their customers, all with competitive rates. Distribution By Air has a network to ensure freight is delivered on time, every time. Standard shipping services can’t meet requirements many times, but our DBA expedited freight team can meet almost any need. We built our expedited network, systems and transportation management system to be ready – even at a moment’s notice for on-time, cost effective overnight air freight or any hot shot expedited freight.

The National Motor Freight Classification System (NMFC) has been used for freight shipping and classification for over 50 years, and has created the foundation for shipping rates. Freight today no longer fits into this narrow classification system, particularly as LTL and TL shipments have become standard.

Throughout this year, our overnight air freight company predicts a continued change in logistics, specifically LTL Carrier shifting to dimensional pricing to replace the NMFC system. And though more traditional carriers will continue to offer NMFC rates, expedited freight forwarders like Distribution By Air use more modern technology to create competitive rates for overnight air freight and expedited shipping especially if you have a high freight class.

If standard shipping using the NMFC rates does not apply to your shipping needs, and/or you need expedited shipping for on-time delivery, call our overnight air freight and expedited freight forwarder experts.