As manufacturers consider shifting production from China back to the West, the U.S. could become an economically viable alternative faster than you think.
The International Air Transport Association released figures for airfreight markets in April which showed modest growth of 1.4 percent compared to April 2012. This small increase helped to offset the 2.6-percent decline recorded in March compared to the year-ago period. And it continues an 18-month trend of basically no growth in the cargo markets.
Spot market freight volumes declined 16 percent in April compared to April 2012, according to the DAT North American Freight Index. Year-over-year declines in volume were seen across all equipment types: van load volume declined 20 percent, refrigerated ("reefer") loads slipped 10 percent, and flatbed freight dropped 15 percent.
The number one imperative for North American shippers continues to be cost reduction and cost containment, which means that logistics providers must analyze and scrutinize operations more diligently than ever in order to find such opportunities, says Jeremy Haycock, president of Damco North America.