Global Trade Expansion Challenges Logistics Firms to Improve
By Daniel P. Bearth, Senior Features Writer
This story appears in the Sept. 10 print edition of Transport Topics.
As the volume of world trade continues to grow, shippers and third-party logistics companies are looking for ways to better manage the flow of goods coming into and out of the United States.
And that’s putting more pressure on transportation service providers to increase the speed and consistency of freight deliveries, according to industry experts interviewed for the 2007 edition of Transport Topics’ Top 50 Logistics Companies in the United States and Canada.
Logistics expert John Amos said supply chain management processes must take into account a dizzying array of factors that can slow down transportation, including security compliance, carrier capacity, port labor and even environmental issues.
“It’s becoming a more challenging environment,” said Robert Johnson, director of logistics and transportation for chemical manufacturer Huntsman Corp. in Dallas. Huntsman operates in 24 countries and generates about 15,000 international shipments annually.
Although the United States continues to import far more goods than it exports, both im-ports and exports are increasing at a rapid clip.
Since 2001, the value of imported goods has increased 62.4%. The value of exports, after falling in 2001-02, has grown by 50%, according to the Commerce Department.
In this environment, international shipping specialists, such as package carriers UPS, FedEx and DHL, and air and ocean freight forwarders, such as APL Logistics and Eagle Global Logistics (now part of CEVA Logistics), are grabbing an increasing share of global freight transportation.
DHL Exel Supply Chain and UPS Inc., in fact, have traded places back and forth as No. 1 logistics company in the United States and Canada every year since the TT Logistics 50 list was started in 2002. This year, DHL came out on top.
The effect of global trade also can be seen in the results of freight brokerage firms, warehousing companies and truck and rail service providers.
This story appears in the Sept. 10 print edition of Transport Topics.
As the volume of world trade continues to grow, shippers and third-party logistics companies are looking for ways to better manage the flow of goods coming into and out of the United States.
And that’s putting more pressure on transportation service providers to increase the speed and consistency of freight deliveries, according to industry experts interviewed for the 2007 edition of Transport Topics’ Top 50 Logistics Companies in the United States and Canada.
Logistics expert John Amos said supply chain management processes must take into account a dizzying array of factors that can slow down transportation, including security compliance, carrier capacity, port labor and even environmental issues.
“It’s becoming a more challenging environment,” said Robert Johnson, director of logistics and transportation for chemical manufacturer Huntsman Corp. in Dallas. Huntsman operates in 24 countries and generates about 15,000 international shipments annually.
Although the United States continues to import far more goods than it exports, both im-ports and exports are increasing at a rapid clip.
Since 2001, the value of imported goods has increased 62.4%. The value of exports, after falling in 2001-02, has grown by 50%, according to the Commerce Department.
In this environment, international shipping specialists, such as package carriers UPS, FedEx and DHL, and air and ocean freight forwarders, such as APL Logistics and Eagle Global Logistics (now part of CEVA Logistics), are grabbing an increasing share of global freight transportation.
DHL Exel Supply Chain and UPS Inc., in fact, have traded places back and forth as No. 1 logistics company in the United States and Canada every year since the TT Logistics 50 list was started in 2002. This year, DHL came out on top.
The effect of global trade also can be seen in the results of freight brokerage firms, warehousing companies and truck and rail service providers.
