Alternatives-to-LTL-and-Truckload-Freight-Shipping-Modes-Gain-Popularity
July 28, 2008
A recent report comparing freight transportation alternatives was recently prepared and presented by the Center for Ports and Waterways. Of notable interest for freight shippers was the statistical data that demonstrated that United States rivers currently transport an amount of cargo that is equal to almost 60,000,000 over the road truckload trips annually.
The key waterways mentioned in the report include the Ohio, Tennessee, Missisippi, Cumberland, and Columbia rivers and river systems. According to the research model, if the Illinois and Mississippi rivers in the area of St. Loouis, MO, were closed, there would be over a 200% increase on highway truckload traffic, and an over 400% increase in freight shipping delays.
The study illustrates that inland river barge transportation can be substantially more efficient than other freight transportation modes. For example, a standard 15-barge river towing outfit has the same tonnage capacity as over 1000 trucks or 200 railroad cars being pulled by multiple locomotives.
Freight shippers of all kinds must look into alternatives for domestic shipping such as barge tows and fuel prices continue to push truckload and LTL shipping prices higher and higher. This will be especially more so in the near future as the freight carrier and freight services supply continues to shrink as freight companies go out of business and industry consolidation occurs.
"When there are less carriers and carrier assets than the freight loads that need to be hauled," states Paul Jameson, an industry expert, "that means that when this economy turns around there is going to be a lot more demand than capacity. This means freight brokers and carriers are going to be hard pressed to cover all their loads and LTL and truckload pricing will increase even beyond what is called for by increasing fuel. Look to see freight rates and freight quotes increase substantially heading into 2009."