Purchases of heavy trucks down
Trucking companies are holding back on purchasing new vehicles as the economy continues to struggle.
Continued uncertainty about the global economy and high unemployment has many firms avoiding large capital purchases, focusing instead on maintaining their current systems. For transportation companies, that means holding off on replacing vehicles within the fleet. Heavy truck purchases were down 24 percent in May from a year ago, FleetOwner reported.
This will likely impact distribution networks, as fleets continue to rely on aging vehicles to transport freight. The age of a transportation network can influence a number of cost factors, including fuel, vehicle repair and delivery time. Maintaining the optimal fleet age can help companies reduce these expenses while increasing the reliability of product delivery.
Companies that invest in their transportation systems can see greater savings throughout their organizations. Proper logistics can streamline product delivery while maintaining inventory levels. Orders can be fulfilled faster because loading times are reduced, which can help increase overall profit margins.
Shipments have continued to remain in high demand as companies focus on their core business. More firms are working with logistics partners to improve the overall efficiency of their supply chain, placing even more stress on the industry's aging fleets.
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File Under: Transportation