February 3, 2018

Truck Insurance Brokers Say Consumer Demand For Fast Shipping Growing

truck insurance brokers

Truck Insurance Brokers

As e-commerce expands aggressively, consumer demand for faster deliveries becomes an crucial factor, and according to truck insurance brokers, it’s transforming how packages are assembled, shipped, and amassed, forcing fleets to quickly adapt. In fact, retail stores continue to take hits, causing physical locations to close their doors, and this means an increase in online shopping and shipping.

55% of consumers want same-day shipping of their online goods, while 46% prefer next-day shipping. Joined with an increased demand for low-cost or zero shipping costs to the consumer, the pressure is mounting for carriers. It seems like time is running out for goods that take more than a day to get to consumers, causing trucking to undergo massive changes. This is all thanks to a store that sells just about everything: Amazon.

Truck insurance brokers say fast, frugal delivery expectations mean fleets call for more efficiencies. At a international trucking conference, experts acknowledged that more companies will probably be shifting to warehouse designs that are regional, instead of large centralized warehouses. Larger trucks would still move packages to smaller, scattered locations, storing them closer to consumers for easier delivery in shorter timeframes. It doesn’t mean you eliminate the warehouse. It means that they’re designed differently and placed in various places each time.

Does this mean more online sales will mean fewer drivers on the road? Experts say it will mean more drivers. While the bigger trucks will haul to regional warehouses, experts foresee more delivery drivers taking to the streets to make the final drop.

But industry insiders say minutes and miles will be make-or-break issues in coming years. Utilizing the most up-to-date technology to locate those required efficiencies, and crunch every dime out of the final mile has become big business. The way items are moved and stored isn’t the only thing that will be changing.

Seeking Ways To Reduce Costs

There are still bigger issues that revolve around costs and safety. These new demands often lead to inefficiencies, and drivers are seeking ways to reduce expenses. Truckers say they pay particular attention to these three items:

  • Maintenance – Adhering to arbitrary maintenance programs can result in unnecessary expense. Having advanced engine diagnostics and real-time mileage reports can help to implement smarter maintenance programs. Truckers can reduce a variety of costs with fleet maintenance software, like spending less on spare parts and minimize downtime. Failures in the vehicle can cause loss of time on the road and high high repair bills. By being at the forefront of vehicle maintenance, drivers can diminish costs and avoid losses.
  • Gas costs –  Reducing fuel costs is a simple way to reduce your operating costs. But sometimes it is difficult to keep track of these operating. Integrated fuel cards make it easy for you to monitor your driving behaviors that may increase fuel bills. Drivers who take this approach have seen up to a 25% reduction in fuel bills.
  • Streamlining paperwork – Hauling loads generates lots of paperwork: promissory notes, delivery of files, vehicle inspections, and invoices, just to mention a few. Converting paper formats to electronic versions can reduce fleet costs in many ways like the cost of paper and printing and data entry. Also, when you convert to electronic formats, you can access the information from anywhere.

Additionally, are you aware improved fleet safety records and can reduce insurance premiums? And truck insurance brokers say monitoring trucks by GPS not only provides an effective means to monitor your biggest asset, especially if it’s stolen, but this can also lower your insurance premiums.

Maximizing space and minimizing time on the road continues to be the name of the game, but safety remains at the top of the list to meet expectations.