Companies that provide urgently needed products, like medical supplies, or food and perishable products, likely will value speed over cost, Ernst says. Expediting may extend the period in which perishable items can be sold, helping to boost sales. The costs incurred when manufacturing and assembly plants have to shut down due to a lack of parts are steep. Using expedited shipping to ensure they remain operating can also pay off. Expedited shipments typically undergo less handling than non- expedited cargo. Generally, the more an item is handled, the greater the risk that it will be damaged, Ernst says. Minimizing handling often is critical for products such as finely tuned machinery or robotics, in which damage becomes expensive. Moreover, when products vulnerable to damage aren’t expedited, companies may spend extra time and money packaging them, Ernst says. Reducing
Able Hardware, a key player in the metal fabrication industry, embraces expedited transportation as a strategic tool, not just in times of emergency, but also as a way to enhance its competitive edge and support growth.
and partner with logistics company Map Transit. One “slam dunk” use case for expedited shipping occurs when a company offers high-value inventory, such as electronics, and covers the cost while the goods are in transit, says Steven Carnovale, Ph.D., supply chain strategist and associate professor with Florida Atlantic University. Shortening transit time can reduce the holding costs while the goods are being shipped. Expediting can be key when it’s critical that a shipment arrive at a
specific time and at a specific place, such as before a trade show or marketing blitz. For example, companies planning for Black Friday sales might proactively expedite shipments to retailers so the products will be part of Black Friday ads, says Jason Williams, account manager with Trinity Logistics. Sometimes the ads themselves are expedited, Williams says. The printing company may face a tight time frame between finalizing the ad and when the customer needs it, so they’ll plan from the outset to expedite. EXPEDITING ADVANCES It’s likely that expedited shipping will remain popular, given how accustomed almost everyone has become to near- instant delivery timeframes, as well as the ways in which it can be used strategically. The tools used to expedite, however, are likely to change. For instance, some larger companies are experimenting with drone delivery. “It’s a question of when, not if,” says Darpan Seth, CEO of tech firm Nextuple. These changes make the expedited shipping market an interesting space to be in, Ernst says. “It’s exciting, and we’ll see it grow by leaps and bounds in the coming years,” he adds. n
the need for additional packaging can offset some of the cost of an expedited shipment.
Trucks carrying expedited shipments generally stop less frequently than those with non-expedited cargo. Each stop can present another opportunity for loss. “Some companies may justify expedited shipping because it’s less risky,” says Patrick Noonan, founder
KEY TRENDS IN EXPEDITED SHIPPING Global expedited shipping has experienced significant changes in recent years, with growing reliance on advanced technologies, increased demand for ecommerce, and supply chain disruptions due to weather, the pandemic, and other global events. As global shipping rates continue to rise and digitalization becomes a necessity, companies are leveraging data analytics, AI-powered platforms, and sustainable logistics to stay competitive. Here are key trends to watch. AI. The rise of artificial intelligence enables more efficient transportation operations, particularly helping shippers to optimize routes, predict costs, and improve packaging strategies. RISING RATES. The impact of rising parcel rates across all major carriers is leading shippers to look for cost-effective solutions to help optimize freight and parcel shipping operations. SUSTAINABILITY. Businesses are increasingly committed to reducing their environmental footprint, even though it can mean higher transportation and logistics costs.
34 Inbound Logistics • November 2024
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