Package delivery giant, United Parcel Service (UPS), is to sell its freight business to TFI International Inc, a Canadian-based transport and logistics company. It is leaving the domestic trucking market to concentrate on the growing small package delivery business. Even though 2020 was a difficult and unprecedented year, the shipping and logistics industry faced gargantuan increases in shipping volumes as consumers ordered everything online during national lockdowns and stay-at-home orders. Adaptability is, therefore, key in fulfilling orders and deliveries to customers, and to meet the challenges faced by the industry.
Cargo Demand Is Increasing
Industry experts are confident that capacity remains tight this year, but also predict that shipping trends point to a strong and profitable market. Analysts are expecting a surge in demand for transport this year, as retailers restock and manufacturers resume their operations. Hence, delivery and shipping companies must be ready to accommodate rising shipping volumes for the timely fulfilment of orders. Shipping specialists at Lone Star Overnight note the value of express courier and overnight delivery service in meeting customer expectations and getting important parcels distributed on time. A company’s commitment and dependability will set it apart from the competition.
It is also expected that shippers will increase their prices this year to adjust for the higher costs of fuel and labor. Hence, courier companies will prepare for the price hikes by maximizing their shipping programs. They can do this by looking at ways to save money on routes and enhancing networking activities. In addition, shippers will also develop and diversify delivery options and carrier mix.
Technology And Automation For Efficiency
Delivery service providers can make use of technology to improve their services. To illustrate, automation has already made its mark in the industry and has been trending in recent years. Thus, expect more businesses to use automation and artificial intelligence (AI) to streamline operations. Blockchain will also assist in transmitting digital data, safely replacing old-fashioned methods of communication. Courier companies are also expected to work closely with shippers and vendors to enhance visibility to customers and deliver packages quickly. Businesses can also transition from offline to online operations using digital freight forwarding technology, helping them to manage packages and supply chains.
The small package delivery business is a growth area. Shipping and logistics companies can respond to increases in demand by improving their delivery program, exploiting distribution options, and using technology for efficiencies.