Logistics Loans - Freight Financing

The logistics, Freight and transportation industry is one of the most competitive and diverse industries around, especially because of the relatively low costs and regulatory stipulations associated with the industry. Overall, the logistics industry has remained steady with regular growth. contributing the annual gross domestic product (GDP). These overwhelming numbers have continued, with expectations of looking positive.

What does the logistics industry really do? Typically, most logistic companies deal with a variety of supply chain necessities for companies in a variety of industries such as: inbound and outbound transportation management, fleet management, warehousing, materials, order fulfillment, logistic networks, inventory and inventory management, supply and demand planning, third party logistics management (3PL’s), and any other logistic service that is needed in the planning and execution of transporting goods for a business.

The logistics and transportation industry is a major player in the country economy today, however there are major subsectors of the logistics industry that contribute to the positive growth. These subsectors include:

Air & Express Delivery Services (EDS): Through air and express delivery services, logistic companies can offer expedited and time sensitive transportation for a variety of items. Air and express delivery services are an $82 billion industry that tends to benefit small and medium sized businesses that cannot afford to handle their supply chain needs alone.

Freight Rail: Through the United States rail network, many logistic businesses are able to move high volumes of heavy cargo and products throughout the country. This method of transportation for goods averages around 5 million tons of goods for almost every single industrial, retail, and resource based industry.

Maritime: The maritime subsector for the logistics industry accounts for most of the international goods transportation. Maritime shipment includes carriers, seaports, terminals, and labor involved for movement of goods and cargo.

Trucking: This is one of the most common and well-known subsectors of the logistics industry, accounting for over 10.5 billion tons of freight being moved via this subsector. This allows cargo to be transferred over short and medium distances throughout the country.

Parking Stores/Warehouses: This is one of the most essential subsectors of the logistics Industry.

The logistics industry is incredibly vital to the world today – without the logistics industry, distribution of valuable resources, such as agriculture, coal, commodities and so forth, would lead to emergencies across the world. The entire industry has seen some rapid growth, especially by adapting to vital trends that are reshaping the logistics industry today.

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