What is trucking logistics?
As one of the primary ways goods reach consumers, trucks play an indispensable role in the supply chain for just about anything you can think of. Trucking logistics refers to the planning and analysis that goes into making freight transport by truck as productive and efficient as possible. From the lens of trucking logistics, every decision related to routing, vehicle procurement, driver assignments, fuel purchasing and beyond is an opportunity for optimization.
What is a trucking logistics company?
When merchants have goods they need to move by truck, they hire trucking logistics companies to facilitate. A trucking logistics company is an organization that, on behalf of its clients, handles various supply chain processes to get freight where it needs to be safely and efficiently. Depending on the company, their services might include warehousing, packaging, distribution and disposal.
Business model of trucking logistics company
Most trucking logistics companies fall into one of two categories: freight brokers and third-party logistics companies (commonly abbreviated as 3PLs). Freight brokers coordinate storage and transportation activities on behalf of their clients but don’t actually own any warehouses or trucks. Instead, they delegate those actions to their network of small and medium-sized carriers. 3PLs on the other hand do own warehouses and vehicles and carry out storage and transportation work themselves. While both approaches have multiple advantages in their favor, freight brokers tend to boast about the flexibility in options they offer their clients while 3PLs point to the cohesion made possible by having all operations under one roof.
How a logistics company handles supply chain management
While the terms “supply chain management” and “logistics” are often used interchangeably, they apply to different activities. Logistics refers mainly to the transport and storage of goods from their point of origin to consumers. Supply chain management is an umbrella term for every step involved in creating and ultimately selling a product such as material sourcing, manufacturing, and selling. Put simply, logistics describes only a portion of what supply chain management entails. For the most part, logistics companies stick to warehousing and moving goods (because those activities are their forte) and leave the other elements of supply chain management to other firms.
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Common pain points for trucking logistics companies
Trucking logistics companies of all sizes and specialties often contend with these common pain points:
- Tracking and analyzing fuel expenses
- Staying compliant with federal regulations
- Relaying shipment updates to clients
- Balancing driver schedules effectively
- Transporting freight safely and securely
- Rising trucking costs due to inflation
- Maintaining trucking fleet vehicles
But with the help of software, several of these challenges can be alleviated or eliminated entirely. For example, many trucking logistics companies manage their service work via a fleet maintenance app. Automated reminders, electronic work orders and convenient collaboration tools ensure preventive maintenance schedules are adhered to. Truck fleet maintenance management is further made easier by anytime access to customizable reports that make it easy for stakeholders to identify areas for operational improvement.
DID YOU KNOW?
In a recent survey conducted by Fleetio, fleet professionals involved in trucking, logistics and shipping selected “the cost of performing service” as their top industry concern. “The availability of parts and vehicles” and “driver and/or technician labor shortages” took second and third place.
What to look for in a logistics company
When searching for a logistics partner, organizations should keep an eye out for these qualities:
- Top-notch customer service (24/7 support, tracking numbers, etc.)
- Extensive use of technology (GPS, RFID, online ordering, etc.)
- Certifications (refrigerated goods, hazmat, etc.)
- Positive reputation
- Competitive rates
- Financial stability
PRO-TIP
Unsure whether to go with a freight broker or a 3PL? If your shipping needs are fairly low volume or simple, a freight broker can probably deliver everything you need at the best price. If your shipping needs are rather complex, partnering with a 3PL who can handle more aspects of the supply chain process will likely be more cost-efficient in the long run.
Trucking and logistics trends for 2025
After enduring the longest freight recession in history, truckers may have reasons to be optimistic about 2025. Key indicators of industry health like spot rates, contract volumes and last-mile delivery demand from e-commerce businesses have begun to trend in the right direction. And while the loss of smaller carriers in recent years is nothing to celebrate, reduced competition might be having a positive impact in terms of balancing capacity and accelerating the industry’s rate of recovery.
That being said, it could be wise for carriers to temper their hopes for the future to an extent given our current political climate. From rolling back regulations to implementing all manner of tariffs, the Trump administration’s first days in office have been a flurry of activity. How all these changes will impact the trucking industry can only be speculated at this point, but that uncertainty makes anticipating the future of trucking rather challenging. On the one hand, less pressure to adopt electric and hybrid vehicles could allow carriers to invest in their businesses in other ways. Conversely, tariff-sparked trade wars could increase prices on all kinds of goods, resulting in reduced demand (and, by extension, fewer loads) in some sectors.
What is certain is that, during turbulent times like this, it helps to stay informed. On the technology front, the rise of artificial intelligence and the increasing importance of cybersecurity for carriers large and small are topics that are sure to grab headlines throughout 2025. When stories like the results of this year’s International Roadcheck get published, take those opportunities to learn from the mistakes of more reckless carriers. And, if you can, try to attend a nearby trucking conference or trade show to gauge how the industry is reacting to the latest market developments and pick up best practices from peers.
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