The Intricacies of Freight Distribution in the United States
As you peruse your local department store this weekend, likely you aren’t thinking about where that item is made or how it got to the shelf. You are simply searching for that item that will help you tackle that honey-do list of projects for the weekend.
In this week’s Ask Andy, we talk about the freight distribution channels across the country. Andy Vanzant, COO at Gulf Relay, talks about some of the history of freight as well as some of the ways freight is distributed across the country.
Historically, freight factories are located in the heartland of America and that is where most products are made and shipped. Freight then is carried throughout the country with pricing contingent on what the market considers equitable. That pricing can change based on different factors.
As an example, a bad crop of produce or a natural disaster in one part of the country can cause the need for products to come from other parts of the country to get product to those same places. Consumers still need the product even if it is struggling to be made.
Another challenge in recent times is the fact that consumers have slowed in their spending habits, meaning there is less demand for the product and thus less being manufactured and shipped. As a result, pricing changes as carriers seek to stay competitive and meet the demands of the market.
It’s a never-ending game of chess for carriers but that’s why it pays to have the best equipment with veterans in the industry who can navigate the ebbs and flows of the market to be able to compete. It’s what makes Gulf Relay the successful company we are today as we serve coast to coast of this great country!