Tradelines News

Get the latest news and updates on cross-border customs and international trade.

How is the Growth of E-Commerce Affecting Trucking?

Posted February 05, 2019

Under Economic Issues, Logistics & Supply Chain Issues

(Deborah Lockridge – Heavy Duty Trucking)

Some of the issues of most concern to the industry, such as the driver shortage, hours of service, and truck parking, are affected by the growth of e-commerce and omni-channel marketing. The American Transportation Research Institute released an analysis of these impacts, including the challenges and opportunities posed by more regionalized retail supply chains and the proliferation of urban “last mile” deliveries have presented.

From 1999-2017, e-commerce sales increased from less than 1% of total U.S. retail sales to more than 9% – a 3,000% increase in e-commerce sales. Annual growth of e-commerce has ranged between 13 and 16% over the last five years, outpacing the 1% to 5% annual growth in traditional retail sales.

At the same time, we’ve seen the rise of the omni-channel model. Retailers are becoming more flexible in how they transact with consumers, decentralizing their distribution/fulfillment networks to bring inventory closer to consumers.

“Last Mile Fulfillment Centers” represented 73% of the industrial real estate market in 2017, a 15-percentage-point increase from the previous year. Click here to read more.