In the first quarter of 2020, freight transport prices rose, with the exception of rail transport, which fell by 2.9%. Sea freight prices saw the strongest increase (+4.5%) within the freight transport sector. Air freight prices are up (+1.1%), while the increase in road freight prices (+0.7%) is moderate.
The first victims are small and medium-sized businesses: a carrier will find it easier to impose its rates on small companies than on "major accounts". The challenge is tooptimize transport costs, which on average represent 3 to 5% of a company's budget. For transport companies, the constant challenge is to reduce their production costs.
Optimizing materials and equipment, improving training and taking CSR into account are sure-fire ways of improving quality, punctuality and reliability, and reducing costs in the transport chain. One of the strengths of the transport industry is its ability to consider respect for the environment as an essential value for progress and economic efficiency.
Best practices
There are a number of simple solutions for optimizing costs. For example, a better knowledge of truck loading capacity enables you to fill them to capacity, thus saving both time and money. Choose the best mode of transport, then the best carrier for the chosen mode. The right materials, the right equipment and the right level of driver training are the keys to making the right choice: among other things, the lower fuel consumption of new materials, reduced traffic jams thanks to geo-location, more fuel-efficient and less dangerous driving by drivers trained ineco-driving, all add up to lower transport costs.
Total or partial use of a mode other than road, such as river transport, is both economical and better for theenvironment. Optimization also means using an efficient cost control system to avoid double invoicing, and ensuring compatibility with your carriers' information systems.
The dangerous race to permanently reduce cost and lead time
Many companies, shippers and carriers forget to consider "intelligent" solutions, or at the very least, don't think about working together to imagine better solutions, contenting themselves simply with exchanging cost and time imperatives. This lack of cooperation has an environmental, social, health and economic impact.
Social dumping is one of the most value-destroying practices. Low-cost drivers are generally not as well trained and supervised. As a result, they lose time and money, as they don't know how to use tools to optimize routes and transport times. An additional consequence: amplification of the negative externalities generated(CO2, particulates, congestion, noise, accidents, etc.) for the community.
Shippers concerned about the punctuality and safety of their deliveries therefore need to be very vigilant about the ability of their transport service providers to use the best technical and employee training solutions. They can obtain a neutral and precise assessment thanks to the TK'T index proposed by the TK'Blue agency.