National Logistics Day – June 28th!

 

National Logistics Day, Trucking, and How It Keeps Us Moving – Of all of the year’s various holidays and celebrations, how familiar are you with National Logistics Day?

Celebrated on 28^th June every year, National Logistics Day is all about acknowledging and appreciating the importance of the logistics and trucking industry, which helps move millions of goods from one place to another worldwide.

The logistics industry features several processes, including packaging and shipping. Moreover, it involves thousands of different types of equipment, inventory, materials, supplies, and workforce. Without the logistics industry, businesses would start crashing worldwide. Unfortunately, we got to see a glimpse of that over the past two years.

Businesses involve a lot of moving parts. Satisfying different products and services according to the customers’ requirements. The entire logistics process has to run smoothly to ensure these deliverables reach customers on time. Otherwise, you can’t fulfill your orders, grow your sales, and as a bonus, you’ll lose out on profits. Hence why logistics is essential to every business.

Since National Logistics Day isn’t too far away (June 28^th!), we thought it would be nice to discuss how trucking keeps us moving and the benefits of this particular industry within the logistics sectors. Read on to find out more about National Logistics Day and the trucking industry’s impact on our lives.

 

A Little History About National Logistics Day

The military first used the word ‘logistics,’ referring to how they stored and transported their supplies. The term became more mainstream and made its way into different businesses with time. Later on, it became associated with the supply chain, and it is mostly used in that context today.

The logistics industry first took shape with Marco Polo’s journey across the Silk Road. The diary in which he recorded his journey later became a road map for traders and merchants to follow as they traveled from Europe to China. In the late 19^th century, the horseless carriage or semi-truck was invented, and it greatly optimized the transport of goods. The first flight carried cargo from Columbus and Dayton in the United States a decade later. It revolutionized the sector and shortened the delivery time.

By the 1950s, container ships were carrying millions of tons of goods within the US, which was the true birth of the logistics industry. You might think that National Logistics Day started at least a few decades ago. Surprisingly, it is only three years old! A company named Logistics Plus Inc. coined the annual commemorative event in 2019.

Companies do several things to celebrate National Logistics Day, but there is no common form of celebration yet. A good way to celebrate is to research and observe the logistics process behind a product you love or use at home. You would be fascinated with how a particular product is manufactured in one part of the world and reaches your doorstep in another location.

 

Why is Trucking So Important for Businesses? 

Many people are unaware that the trucking industry is solely responsible for moving 70% of the freight moved in the United States – this is a massive figure. Trucks are used to move all kinds of products and items, big and small – food, medicine, computers, smartphones, chemicals, clothing, books, beverages, electrical equipment, raw material, etc. The list is practically endless. Knowing that the trucking industry handles the transport of 70% of the total freight in the US, just imagine how things would be if something suddenly halted all trucks.

That’s what we got a glimpse of during the COVID-19 pandemic. As soon as cases started rising in the US, the government imposed a mass lockdown, and all businesses, except essential services, were closed down. Moreover, national and international borders were sealed, meaning that no truck could go out or come in. Hospitals were already full of patients and if the trucking industry was at a standstill, they could run out of medical supplies.

Moreover, trucks also transport fuel to gas stations all over the country. Still, since logistics operations were halted, they had to depend on their reserves. This caused chaos among people looking to fill up their tanks before things got worse. So, you can understand how big a blow the economy took when logistics were halted and how the reopening of businesses and routes helped people ease into the new situation.

Almost every industry relies on trucks to provide them with equipment, supplies, raw material, and other goods. Whether it involves transporting lumber from the forests or providing pharmaceutical industries with the chemicals they need to make medicines, trucks are integral. In several industries/businesses, trucking is used in multiple phases. First, it transports the raw materials to the manufacturing facility, and when the products are finished, it transports them to the distribution centers and suppliers far and wide.

Trucking is a major indirect component of our daily lives. If you take a look around you, most of the things you see have reached you through trucks, in one way or another.

 

The Logistics of Trucking and the Economy

Although it’s quite clear, let’s take a look at how truck affects our economy. As mentioned, trucking manages the movement and transportation of 70% of the country’s freight. This translates to more than $700 billion worth of shipped goods that trucks move every year. The United States’ Gross Domestic Product (GDP) from the transportation industry was approximately $515 billion in the fourth quarter of 2021, and healthy growth is expected in 2022.

This means that the transportation industry makes up almost 7.5% of the country’s GDP, with its contribution exceeding $1.5 trillion this year. And with the trucking industry being solely responsible for more than half of this amount, it is incredibly important for the health of the nation’s economy.

It’s safe to say that almost every sector of the economy is dependent on the trucking industry, be it agriculture, manufacturing, technology, health, retail, construction, or finance. This highlights another contribution of this industry: providing employment.

 

How Does Trucking Combat Unemployment?

According to recent figures by the Bureau of Transportation Statistics in the US, transportation and its related industries hire more than 13 million people every year, accounting for 9.1% of the total workforce in the country. Since the past decade, the employment statistics have been steadily increasing, with a slight dip in 2017.

Moreover, approximately 800,000 truck drivers are currently working in the US, and their cumulative income touches up to $30 billion every year. There is a shortage of roughly 100,000 drivers to manage the freight effectively, so you can expect the number to increase in the coming years.

Most drivers are self-employed and take their assignments and jobs from small trucking businesses. On the other hand, larger trucking businesses often hire drivers who are part of a union. The unions represent the interests of their drivers, while trucking associations represent the overall trucking community.

Trucking unions and associations are quite strong and have a significant voice since they know their contribution and impact on the US economy. Some unions, such as the American Trucking Association (ATA), can easily address items of concern via their nationwide footprint.

The ATA also has a significant political influence, since the trucking industry is estimated to collect more than 80% of the annual transportation revenues. The industry is marred by several state and federal laws implemented to protect citizens. Therefore, the ATA devises best practices and industry standards to ensure that truckers don’t get a bad name.

This was a lot of history and supporting information surrounding National Logistics Day. As you can see, trucking has an important place in our lives, and it truly keeps us moving. But you don’t have to be a trucker or business owner to appreciate the efforts of the logistics sector. On June 28th this year, you can also become part of the celebrations and acknowledge how trucking helps you live your daily life.

 

Thank you to the entire logistics sector!