Article that I have chosen is “Trucking Companies Boost Prices Amid Capacity Squeeze” by Jennifer Smith and was published on Oct 25, 2018.

Focus of the article of Trucking Companies Boost Prices Amid Capacity Squeeze

Main focus of the article is about the day by day increasing prices of goods transport companies. These upwards trends of money demands from manufacturers and retailers result in the pressure on the economy.

Article also throws light on these reasons of the boosting price demands and the factors on which the prices of movers depend upon. In addition, future estimation of stabilization of prices of trucks is also mentioned. [1]

Summary of main points of Trucking Companies Boost Prices Amid Capacity Squeeze

To summarize, the article is about the changing in fact increasing pricing trends of truck companies and movers. Truck companies are demanding more wages from manufacturers to move their loads than they demanded in the past. This is affecting the economy of U.S heavily.

It also affects the profits of manufacturers as they have to pay a ton of money in order to transport their goods to markets. The goods transport companies are benefited a lot from the uprising logistics of present day and age.

This article also states the differences in revenues of major transport companies of U.S in the present time and compares these revenues with past revenues. Some major companies of movers in U.S are Knight-Swift Transportation, Covenant Transportation group and Inc. , Amazon.com Inc. and many others. All these companies enjoyed a fare increase in pricing strength over the past few years. [2]

Cass Truckload Linehaul Index gives an estimation of per mile pricing of trucks. This index shows an increase of about 10 percent in mileage pricing in the year 2018.

Various factors play a role in the increasing pricing of truck loaders. For example, increasing petrol price, uprising pays of drivers and increasing costs of labor are also a burden on the truck loaders which in turn are manifested in the form of higher shipment costs.

In order to counterpoise the effects of amount paid for shipments, many large and renowned companies like Nestle and Heshery have to increase their product costs.

However, it is also estimated that there are chances of reduction in these trends in the near future. Because stabilization is the key in any market and manufacturers also need this stabilization quite much.

Sharing in class or marketing and logistics management team:

Logistics are a crucial and integral component of supply chain management. Supply chain in turn depends upon the demands of the customers. Supply chains are quite sensitive and cannot be balanced without an effective and well organized transport system. Logistics may appear simple , but a lot of hard work, knowledge and effort is required to make transport system of any company look effortless.

A large number of factors play role in making logistics of a team successful. One of these factors is “sharing”.

Sharing of information among logistics management team is important due to several reasons. One of which is “tracking” the luggage and goods and the “security” of transported material.

Sharing new information and having better communication among team members leads to the better safety of the transported material. For example, in food demand-supply chain, food being transported from suppliers to consumers can be easily traced if proper information regarding its logistics and location is shared with the team or in the class. Similarly, wastage of food can be prevented if information regarding its date of expiry is shared. Having these pieces of information can lead to the protection and conservation of the natural resources and in turn results in positive effects on the environment. [3]

Impact of the event (domino effect):

All the effects have after effects and one event leads to another event and the chain continues. This phenomenon of sequence of events which are linked to each other is known as chain reaction. Other term used for chain reaction is domino effect.

The domino effect produced in this scenario is quite strong. Truck loaders, movers and goods transport companies have increased their prices of freight in the past few years. These increasing pricing trends of logistics are caused due to the rise in the price of petrol. Other reasons include huge wages of drivers and increased payment to laborers. This situation or event of uprising money demands by trucking companies have resulted in the increased consumer prices of the products, because companies have to increase the prices of their products to offset the huge payment they made to the movers.

So, one event and a disturbance in the ongoing system leads to a complete new chain of events just like one ripple produced in water by a stone leads to a whole set of new ripples. There is an after effect of these events of future is also expected in the upcoming years. This may be in the form of stabilization of the pricing and burden of the companies who hire movers is suspected to be reduced in future.

References of Trucking Companies Boost Prices Amid Capacity Squeeze

[1]	Aysegul and Safa, "Transportation pricing of a truckload carrier," Euorpean general of organizational research, pp. 559-567, 2011.
[2]	E. Taniguchia, R. G.Thompsonb and T. Yamadaa, "New Opportunities and Challenges for City Logistics," Transportation research procedia, pp. 5-13, 2016.
[3]	T. Hammervol, "Cost-based pricing of transportation services in a wholesaler–carrier relationship: an MS Excel spreadsheet decision tool," International Jornal of logistics research and application, pp. 197-210, 2010.