Understanding Last Mile Logistics Last mile logistics refers to the outbound transportation from a fulfillment or distribution center to the final delivery at the customer’s door. The last mile is the top priority for retail brands but is also the most expensive, least efficient and most challenging part of the delivery process.

The less-than-truckload (LTL) market is adjusting to a soft freight environment, triggering less volume, revenue and profits. As the U.S. freight economy weakened, LTL carriers saw a slip in revenue year-over-year. To date, the only large LTL carrier that hasn’t reported a decline in revenue is FedEx.

Louisiana Weather Causes Shipment Delays. Louisiana called a state of emergency after heavy rainfall affected the region. More than 280 state roads have been flooded and closed, affecting intermodal rail and truckload shipping. “It’s a major disaster,” said Rodney Mallett of Louisiana Department of Transportation and Development. (Learn more here.)

The number of online shoppers is estimated to reach 270 million by 2020. In 2015, online sales totaled $335 billion, and a recent report from Forrester predicts that online sales will grow by an average annual rate of 9.32% over the next 5 years.

Freight shippers are enjoying a buyer’s market at the moment. There’s widespread overcapacity in the trucking industry, forcing carriers to lower prices in an attempt to keep their trucks full. For now, shippers can find low transportation rates relatively easily.

The 27th Annual State of Logistics Report shows that inventory levels are down and logistics costs are rising. Given the extreme demands of the hundreds of millions of online consumers who expect free shipping and fast delivery, e-commerce interrupts transportation budgets and regular shipping strategies. In 2015, transportation costs rose 1.3% year-over-year.

Getting low transportation rates is challenging. The problem is that most people don’t have time to learn the complexities of the transportation industry. And, most people don’t understand the pricing leverage they already have.

Last month, CSCMP and consulting firm A.T. Kearney released the highly anticipated 27th Annual State of Logistics Report. The report reveals a strong shippers’ market in 2016, a slow rise in transportation rates in 2017, and vaguely states there will be large obstacles to productivity in the future.

Deloitte’s 2016 Global Manufacturing Competitiveness Index (GMCI) displays the influence manufacturing has on economies in terms of infrastructure initiatives, technological developments, employment rates, and contribution to the GDP.

FedEx Delivers to Cuba. FedEx became the first American freight carrier with rights to deliver freight to Cuba. FedEx says they will begin service on January 15, 2017. Their rights extend to July 15, 2018.

Cyber-attacks are an increasing threat in the transportation and logistics industry. Transportation and logistics are integral to the world’s economy, and therefore, a valued target for hackers.

Supply chain mistakes are costly. The smallest error is amplified due to the sheer size of a supply chain. It is crucial for companies to maintain best practices in supply chain management.

In 2015, the FAST Act required FMCSA to remove CSA (Compliance, Safety and Accountability) information from public view. It also mandated that FMCSA repair the CSA program so that scores can be used as a consistent, reliable safety measure.