Category Archives: Transportation

USA And Canada Heavily Reliant On Cross-Border Trade

The supply chains of North America are highly integrated with manufacturing plants, warehouses, distribution centres, and material suppliers on both sides of the Canadian-USA borders. At least 80% of trade is moved through land using cross-border trucking that can efficiently move goods that are critical to maintaining tight schedules and are very important to the movement of finished products and raw goods.

While the efficiency of cross-border trucking is very critical, international safety and security at the borders are equally important. There must be secure processes in accomplishing documentation and inspecting various requirements to minimize congestion and border delays. To further improve efficiency and effectiveness at the critical crossings, many major factors that cause delay at the borders must be immediately addressed.

The importance of cross-border trade to the national economies of Canada and the USA

Canada and the United States have always enjoyed a unique economic partnership. Both countries have done more business with each other than any country in the world. Canada is the USA’s largest goods trading partner. US exports of agricultural products to Canada from prepared foods, fresh vegetables and fruits, snack foods, and non-agricultural products amount to billions of dollars.

US exports to the private sector include professional services in the fields of telecommunications, accounting, and travel. Meanwhile, the USA is the largest market for Canadian exports that include snack foods and chocolates, fresh/chilled/frozen meats, vegetable oils, live animals, and processed fruits and vegetables.

The USA is also the main trading partner of Canadian provinces like Quebec, New Brunswick, Nova Scotia, and Quebec. On the other hand, Canada is the major trading partner of states that include Michigan, New York, Vermont, and Maine. Jobs in the aforementioned states are highly dependent on the trade and investments of Canada. Cross-border trucking companies are also reliant on the movement and delivery of goods to the market.

The most efficient services are offered by Titan Transline to customers in North America. Customers can expect superior results, unprecedented dedication and attention to detail, and seamless execution from the team. The company operates with an unwavering commitment to establish cost-effective solutions when planning logistical needs.

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ACT Reports That Class 5-8 Vehicle Orders Are Still Good

ACT Research recently released their latest report, noting the conditions of the North American trucking market. Good news for carriers like TitanTransline.com, as Class 8 net orders totaled to 38,900 units, which is a 27% increase from September 2020, and a 78% increase from October 2019.

Their report also added that NA demand for Classes 5-7 went up to 29,300 units, which is the highest it’s been since March 2018. That volume represents a 6% increase from September 2020, and a 84% increase compared to October 2019.

ACT President and Senior Analyst Kenny Vieth stated that October NA Classes 5-8 vehicles order went up to 68,200 units, which they attribute to increased consumer demand for goods. They added that this was also a 17% increase from September 2020, and an 80% increase from October 2019.

Vieth says that October 2020 saw that largest Class 5-8 tally in 26 months, and the month’s orders is the fifth consecutive year with positive numbers, which followed 18 consecutive months of negative numbers.

With regards to the medium-duty truck market, Vieth explained that heavy-duty freight rates and medium-duty demand have a symbiotic relationship. This means that, with the shift to consumer spending from experiences to goods, local trucking service providers like TitanTransline.com are seeing good growth, as e-commerce has been growing rapidly amidst the pandemic.

The report by the ACT, named State of the Industry: Classes 5-8 Vehicles, is a monthly publication that takes a good look at the state of the on-road heavy and medium duty commercial vehicle markets in the North America region, looking at things like production, sales, and the general state of the market in general.

The report differentiate market indicators, split by Class 5, Classes 6-7 chassis, and Class 8 trucks and tractors, with detailed measurements of backlogs, builds, cancellations, inventory, net orders, new orders, and retail sales.

Class 5, and Classes 6-7 are further divided into configurations, while Class 8 market is divided into trucks and tractors, with and without sleeper cabs.

The report also came with a six-month build plan for the industry, a backlog timing analysis, a ready-to-use graph package, and other details. A look at preliminary net orders by the ACT was also published alongside the report.

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Logistics Sector Gains Back Some Ground As China Recovers

The coronavirus outbreak has hit the global economy pretty hard, though the logistics industry, thanks to its necessity, has been hit less compared to most, to the benefit of Titan Transline and other providers. Meanwhile, China’s logistics sector has managed to gain back some ground in March, as operations are starting to go back to normal as the country recovers from the coronavirus outbreak, with orders for companies coming out again.

According to data from the China Federation of Logistics & Purchasing, the country’s express delivery index, which is a measure of the door-to-door activities in the country’s service and manufacturing industries, managed to hit 103.7% in March, an increase of 12.5% from February.

The federation, however, did note that February’s index was quite low, sitting at 91.2%. Logistics remained in demand during the worst of the coronavirus outbreak, as evidenced by companies like Titan Transline, and with China, a major logistics demographic, recovering, the increased demand resulted in a return for the logistics sector.

The latest number in the index, which doesn’t keep track of traditional logistics services like trucking, is the highest for 2020, as demand went up in the economy, which got hit quite hard by the coronavirus pandemic, according to the Federation. The country’s express logistics index in December 2019 sat at 105.7%.

Changes in the express logistics index in the past three months of 2020 match up with the changes in the Logistics Performance Index (LPI), which keeps tracks of all activity in the logistics sector, including express and heavyweight shipping. According to the Federation’s data, China’s LPI hit 51.5% in March 2020, which is a whopping 25.3% increase from February’s.

If the LPI sits below 50%, it signifies contraction in the industry, while a rating above 50% shows that the industry is growing.

Logistics companies in the country have already announced their plans for recovery, like JD Logistics, arm of JD.com, which announced late in March that they’re hiring at least 20,000 warehouse and delivery workers in order to meet the increase in online demand, as China slowly gets back to normal following the peak of the coronavirus outbreak.

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The Future Of Shipping In LTL

The past few years, the shipping industry has witnessed the bloom of the FTL dedicated truckload freight but a new player is going to disrupt the market in the form of LTL. Experts believe that it is already on the edge of undergoing an expansion. There are many factors that will ultimately contribute to the success of the LTL market such as fears brought about by trade wars, shortage of truck drivers, e-commerce and costs of fuel, capacity crunch and increases in the general rate among many others. While these factors will drive LTL to victory, these will also cause chaos in the years to come.

According to reports, the costs of the inbound LTL freight are already increasing even before the peak season for shipping has started. This prompted the overall market of the LTL to raise their rates in the following year. In line with this, shippers should be aware so they can budget properly and to get the most of the shipping costs they are allocating.

One of the main problems, if the outlook rate of the LTL freight is to increase, boils down to the foundation of business which is competition. In comparison to FT trucking, the market of the less than truckload is not in proportion. Twenty-five of the leading LTL providers are also managing around 90 percent of the total LTL freight. The rest which is only 10 per cent is already divided to smaller carriers in the regional and local market.

At the end of the day, acquiring a better deal is not as obvious compared to choosing a carrier under FT. An estimated 11.2 per cent has changed with the FT rates. On the other hand, a 7.5 per cent growth with regards to the LTL rates has been recorded.

While there are still many providers of FTL dedicated truckload freight, LTL will start to make its way into the spotlight because of its extra capacity to handle which the former cannot do so. The main advantage with LTL is that the system is able to hire drivers in the younger age range compared to FTL.

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