There are so many things working against the supply chain that good times seem far away.
In transportation, there is higher demand for lower supply, and fuel prices have jumped dramatically this year, further increasing costs, says one insider.
“Everyone is paying a premium to move the same amount of freight,” said Syed Aman, the founder, and CEO of Hwy Haul, BB #:361445 a leading digital freight platform for fresh produce, based in Santa Clara, CA.
“The supply chain globally is a mess. We’re nowhere close to being out of this.”
Aman said that the transportation industry remains too complicated, and part of that is because not enough of the system is digital.
He said finding transportation to move a load of produce should be more like booking an airline ticket, and because prices fluctuate every day and from morning to night, the easiest solutions are digital.
The overall transportation market will double in revenue over the next 10 years, he said, and he predicts the industry will go from about 8-10 percent digital now to 50 percent by then.
“Do you want to lead that trend or follow it,” Aman asked.
He said he has no predictions about fuel prices, as those are driven by global economics, but in transportation, more venture capital investment keeps coming into the industry, including his company.
Aman also pointed out the Biden administration created a trucking action plan earlier this year, which promises to strengthen supply chains, address bottlenecks and lower prices.
He’s hopeful the plan will attract more drivers to the transportation industry, since there’s a risk that more will leave than will enter, as the average commercial driver age is over 50.