Logistics is not merely organizing and streamlining the transport of goods. It requires consideration for the various challenges shippers and logistics experts face on a regular basis. The shipping industries, which include truck, rail, air, and sea transport face many challenges. Some of those challenges are industry specific; while others are challenges faced by all modes of transport. The most common challenges are those related to costs of fuel, limitations in infrastructure, and those related to acquisition of equipment and technology. Each mode of transport may face challenges in each of these areas, though some will be able to overcome them more rapidly than others. It is assumed that fuel costs will continue to rise, even with
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Near-sourcing is a concept of developing production and distribution of goods and services closer to a company?s point of origin. By near-sourcing, some companies can greatly reduce costs of shipping across long distances or overseas, for continued production (Heubsch, 2013). However, for near-sourcing to work, companies must find locations closer to home, while still maintaining lower production costs. Many U.S. firms are looking to Mexico and South America for production, where products are relatively close to home and the hourly wages are low (Heubsch, 2013). Costs for shipping raw materials overseas is reduced and costs for labor are kept under control. The challenge of shipping with infrastructure that needs upkeep and further development is more of a problem for truck, air, and rail transport, though shipping to and from U.S. ports may also present a challenge. The Surface Transportation Bill funding is for two years. It does provide funds for highway maintenance, but little for new construction. In addition, some of the funding is expected from sources like fines for vehicle manufacturer failed recall and for research on impaired driving
an …show more content…
Near-sourcing is a concept of developing production and distribution of goods and services closer to a company?s point of origin. By near-sourcing, some companies can greatly reduce costs of shipping across long distances or overseas, for continued production (Heubsch, 2013). However, for near-sourcing to work, companies must find locations closer to home, while still maintaining lower production costs. Many U.S. firms are looking to Mexico and South America for production, where products are relatively close to home and the hourly wages are low (Heubsch, 2013). Costs for shipping raw materials overseas is reduced and costs for labor are kept under control. The challenge of shipping with infrastructure that needs upkeep and further development is more of a problem for truck, air, and rail transport, though shipping to and from U.S. ports may also present a challenge. The Surface Transportation Bill funding is for two years. It does provide funds for highway maintenance, but little for new construction. In addition, some of the funding is expected from sources like fines for vehicle manufacturer failed recall and for research on impaired driving