The Big Problems For Shippers

As industry profit margins are under attack, suppliers are finding new ways to hide margin opportunities in the supply chain.

  • Unregulated and wasteful domestic carrier routing and billing practices.
  • Deeply discounted rates are still much higher than available wholesale shipping rates. Wholesale rates are attainable with knowledge of industry rules and regulations.
  • Excessive inefficiencies, erroneous practices and unscrupulous carriers and brokers are everywhere.
  • Optimal carrier and route selection are often not disclosed by carriers, as regulatory confusion enables them to thrive.
  • Fat margins and inappropriate freight classifications in retail rates offered by carriers, brokers, and distributors.
  • Carriers have no financial incentive to ensure businesses utilize appropriate freight classifications.

Challenges On The International Landscape

  • Surging cargo volume and bottlenecks, lack of available space for expansion and overburdened rail lines are causing West Coast ports to overflow with problems.
  • Approximately $80 billion is lost by businesses each year due to traffic congestion, and such waste will continue to increase in the future.
  • While crews wait for cargo to be unloaded, steamships are burning gas, polluting the environment, and wasting money.
  • About 80 percent of U.S. imports from Asia are imported through California ports, with long lines of trucks waiting to haul cargo away.
  • Projected imports from Asia alone will grow by more than 300 percent over the next 15 years.
  • Delayed shipments result in lost sales and higher shipping costs, ultimately impacting your ability to remain competitive.
  • Ports are unloading containers 24 hours a day to support increased traffic flow, as West Coast ports operate at approximately 130 percent of capacity.
  • As capacity problems mount with shipments via traditional ports, businesses will experience greater delays and expenses.