Truck logistics in the US



Truck logistics in the US

Get from +25°C to -5°C in just one trip? Easy. Lie on a massage chair while the oil is changed in your truck? Easy as pie.

For carriers in the USA, all this is an integral part of life on the road. There are also spacious truck stops, comfortable trucks with a kitchen and a sleeping place, as well as high wages.




Truck driver salary

In the USA, a driver, or truck driver, can earn an average of about 5-8 thousand dollars per month. It largely depends on how much time the driver spends on the road and on his driver license (Class A, automatic/manual, for instance – see details here https://truckschool.net/cdl-class-a-spokane/).

The length of the working day here, by the way, is regulated quite strictly. Now truck drivers has it no more than 14 hours. Of these, only 11 hours can be behind the wheel, and after 8 hours from the start of the journey, it is necessary to make a stop.

If we talk about individual entrepreneurs, of whom there are also quite a lot in the USA, then they earn almost twice as much. But here it is worth considering that their costs are also rather big – all taxes and contributions fall on their shoulders.

Cargo transportation as a service

In general, it is easy to start a business in the field of cargo transportation in America, all thanks to low credit interest rates and good demand for services. It is also worth noting that the cargo transportation market is quite demonopolized here – more than 300 thousand companies are quietly working together without fear that they will be crushed by major players. At the same time, there are plenty of transport companies with large fleets here, too.

There is no such thing as a freight forwarder in the USA. In a sense, its role in the cargo transportation market is performed by brokers: they are the ones who are looking for carriers for companies that need to deliver a particular cargo. And all communication between the parties usually goes through him.

Truck logistics in the US

Another important feature of the American trucking industry is that everyone has their own responsibilities here. This means that if you are a driver, then your task is only to deliver the cargo, and not to repair the car if it breaks down on the way. For the latter, there are special services that leave on one call. The same rule works in the case of brokers or movers: everyone has their own pool of competencies that no one ever goes beyond.




LTL transportation

So, combined or LTL transportation is the transportation of goods from several senders (there may be 3, or there may be 100) in one car. Today, this is a popular type of logistics, because when sending small shipments, it is more profitable to use LTL than to order a separate truck (FTL)).

By the end of 2020, according to the forecast of the research agency M.A.Research, virtually all segments of road transportation will show a decline, despite the growing demand for the delivery of e-commerce goods. But even in the conditions of a difficult year, the indicators of the combined transportation segment sank to the least extent.

U.S. specifics

Rail transport in the United States is not very developed. But road transport is very well developed, their most industrially developed regions are located on the West and East coasts, between which there is an active exchange of goods. In the USA, certain requirements must be met when transporting goods over long distances.

In the USA, the rules are set by the carrier. He assigns the duty to prepare the cargo for shipment to the client himself, who needs to place the cargo on a pallet, pick it up, determine the weight and volume characteristics, integrate with the carrier, print the coupon, paste it on the cargo and hand it over to the carrier.

If you do not have a pallet, there is no barcode and you are not integrated, then the transportation will be considered non-standard, and the tariff for it will be twice as high in some cases.

Large companies in the United States, which are engaged in the transportation of combined cargoes, use high-tech systems. Their medium-tonnage trucks with small trailers come to customers for cargo, scan the coupon and pick up the pallets already prepared for shipment.

In America, warehouses are used that operate using cross-docking technology, cargo is not accumulated there, as with us. These cross-dock warehouses have a limited area. And around the perimeter of these warehouses there are gates (gates) where trailers drive up. There may be an abundance of them on the territory of the warehouse complex, since cargo is often stored not on the territory of the warehouse, namely in trailers. And when a car arrives for unloading, its cargo is immediately disbanded on trailers ready for shipment. Usually, only non-standard cargoes remain in the warehouse, which go at a double tariff and require special packaging or manual processing.





Business books: Top Picks

1
ITIL 4 Foundation PDF
ITIL v4 PDF Publisher: Axelos The ITIL v4 Foundation book by AXELOS

2
Business Model Generation book
Business Model Generation By Alexander Osterwalder, Yves Pigneur

3
The Intelligent Investor PDF
The Intelligent Investor Publisher: Collins Business Essentials

4
Investment Banking: Valuation, Leveraged Buyouts and Mergers and Acquisitions
Rosenbaum and Pearl PDF Publisher: Wiley

5
Fundamentals of Corporate Finance PDF
Fundamentals of Corporate Finance Publisher: Collins Business Essentials



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