What are the challenges in the International Transportation industry?

In this blog we will explore some of the key challenges we face in the transportation and logistics industry and discuss how they can be overcome.

What are the challenges in the International Transportation industry?

1. Congestion: One of the biggest challenges facing the transportation and logistics industry is congestion. As cities and urban areas continue to grow, roads and highways become more congested, which can cause transportation delays and increase the cost of transportation. 

Possible solution: 

Many cities set specific times when units pass certain dimensions. For example, Trailers, or units larger than 3.5 tons cannot circulate during "rush hour" from 6:00 am to 9:00 am and 6:00 pm to 9:00 pm to alleviate congestion.

Car Pool, have you noticed that most of the people who go in their car go alone? A car for 5 people only carries one person. Technology and information management will soon be able to read our collective movements and organize a solution so that you can arrive comfortably, safely and on time at your destination while sharing some of your space and even earning money. 

2. Infrastructure: Infrastructure are the physical facilities that facilitate transportation, it is like the nervous system of our body, they are roads, bridges, railways, ports and airports. In many parts of the world the infrastructure is outdated due to insufficient funds or lack of attention from the government. This infrastructure needs repair or replacement, which can lead to further delays and higher costs.

The countries that dominate the world have in common a military force, a currency with a good global reputation that is even used as a reserve currency internationally, and an infrastructure that facilitates transportation because this helps trade flow. (Among other things such as productivity, education, technology).  

Possible solution: 

The government can obtain more income to have a surplus and invest in infrastructure by opening economic zones (Areas of the country with different regulations that facilitate trade) or make more treaties with other countries using the "competitive advantage" to strengthen their strengths by producing and manufacturing what who already know how to do well and eliminate their weaknesses by buying from other countries the products and services that are most difficult for them to produce locally. Also, the government must detect the industries of the future and invest in them in advance so that the inputs are produced and the final products are manufactured in the same area so that the trade balance comes out adding and not subtracting (More Exports than imports) 

3. Security: Companies must implement security measures such as anticipating their route to travel only on toll roads, contracting Cargo Insurance, traveling during the day to avoid the night and sometimes hiring an escort unit to protect the goods and guarantee security. of its workers.

4. Fuel Costs: Fuel costs are a major expense for the transportation and logistics industry. The cost of fuel can vary greatly and is affected by factors such as world oil prices, government policies, and environmental regulations.

Possible solution: 

It is important to provide timely maintenance to the units and have recent models that give the greatest number of kilometers with the lowest possible fuel consumption, also the idea of electric motor transport is already a reality. 

5. Labor Costs: Labor cost is also a major expense for the transportation and logistics industry. Businesses must pay their workers a fair wage while also making sure they have the necessary training and certifications to do their jobs.

Possible solution: 

"The only thing that does not change is that everything continues to change", the autonomous trailers are already in the final stages of testing, so it will not be a surprise that in a few years the drivers will no longer be so essential and at the same time the warehouses with robots and autonomous forklifts are eliminating jobs. 

6. Technological advances: Technology is changing the transportation and logistics industry and this brings new opportunities and new challenges. Companies must invest in new technology to remain competitive, while at the same time ensuring that their employees have the necessary skills to use this technology effectively.

Having a system that organizes the process from 0% to 100% allows you to have added value, We are experiencing a technological revolution that is changing the way we live so it is time to be aware of the Internet of Things, Automation, Reality Virtual and augmented reality, block chain and other things that are making transport and logistics evolve. 

7. Globalization: Globalization has led to an increase in international trade, but it has also created new challenges for the transportation and logistics industry. Businesses must adapt to complex regulations and trade agreements, as well as cultural differences and language barriers.

Possible solution: 

It is essential to be aware of the new regulations and restrictions as well as the new treaties to use the opportunities that come with the change. 

8. Sustainability: Sustainability is a growing concern for the transportation and logistics industry. Businesses must find ways to reduce their environmental impact and adopt sustainable practices to meet customer demands and government regulations.

Possible solution: 

You can organize your production to consolidate more cargo in the same trailer and avoid unnecessary turns or use less paper and go digital, little things also add up.  

9. Last Mile Delivery: Last mile delivery refers to the final leg of the delivery process, from the transportation hub to the final destination. This is often the most expensive but just as important as the entire supply chain. Customers increasingly want products at their door faster.

10. Inventory Management – Effective inventory management is critical to the transportation and logistics industry. Businesses must balance the cost of holding inventory with the need to maintain adequate stock levels to meet customer demand.

In conclusion, the transportation and logistics industry faces a variety of challenges that impact its efficiency, cost, and speed. Congestion, infrastructure, security, fuel costs, labor costs, technology, globalization, sustainability, last-mile delivery, and inventory management are all challenges businesses must address to succeed. in this industry. By embracing innovative solutions, investing in new technology, and adapting to changing market conditions, companies can overcome these challenges and thrive in the ever-evolving and dynamic world of transportation and logistics.

We are the logistics company you are looking for because we are going to make your life easier "lost" with your imports and exports.

We are super connected with the main customs in Mexico, we have alliances with honest and hard-working carriers (just like you) as well as with the most important shipping companies in the world.

We will treat your cargo as if it were our own and we will walk with you from the beginning to understand exactly what you need and we will build the transportation and customs solution you need for you.

By the way, most of our customers become our friends.

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Send us a mail: sales@transvectologistics.com

Blog source: https://transvectologistics.com/blog/cuales-son-los-retos-en-la-industria-del-transporte-internacional

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