The overwhelming popularity of ecommerce has ushered in an increase in the amount of goods that are entering Canada from the United States. US-based retailers like Amazon, Walmart, Target, Home Depot and other American establishments have shipped goods to more than 30 million Canadian consumers. This has further strengthened the cross-border trade between the US and Canada.
Ecommerce has resulted into an elevated demand for every mode of freight transport particularly less-than-truckload shipping. Not only are LTL providers seeing an increase in demand from Americans who are ordering everything online, non-traditional truckload freight is now spilling over to LTL as well. According to experts, LTL is set to benefit the most from the growth of ecommerce.
However, LTL must not be mistaken for final mile because they serve two different purposes. When Americans purchase heavy and bulky stuff online, LTL providers leverage their equipment for final mile deliveries. In certain instances, proper equipment like straight trucks or pup trailers with lift gates are positioned so that freight can be easily off-loaded.
Ecommerce is not the only sector that has provided many opportunities for LTL providers. Behaviours at the end of the supply chain have changed so that every level has to be adjusted to meet the changing needs of consumers. To speed up fulfilment, retailers have to position products closer to consumers. They either leverage physical stores as fulfilment centres or build localized fulfilments centres outside of the population centres.
Retailers are moving more freight from their stores to comprise a vast majority of their sales growth. Bigger retailers have hundreds of thousands SKU’s that require full truckloads. However, for majority of retailers, increased throughput at stores result to smaller and more frequent shipments to replenish inventories. More store endpoints in normal product flows are not receiving full truckloads of specific items every day; hence creating a more viable position for LTL.
One of the best options for ecommerce retailers is Titan Transline, a one-stop 3PL provider that provides the most efficient transportation options for shipments that have to cross the common border of the US and Canada. Competitive pricing is offered for partial loads along with world class service and reliability.