Urban cargo transportation is still a very challenging activity for carriers across the country.
There are several challenges that still need governmental attention if urban distribution is to be improved.
Currently, the road cargo modal is used to carry out urban cargo transportation, which somewhat limits the performance of carriers.
In this post, we will see the main challenges and the impacts they cause for carriers. Follow us!
Urban mobility and cargo transportation in Brazil
In 2017, the National Transport Confederation (CNT) issued a report that stated that revenue from transport companies was being reduced.
Most carriers were suffering from the major problems that cities had in relation to urban mobility.
The report's index was 60,1%, which indicates a large number of companies suffering from the issue of revenue reduction.
Now, with the pandemic caused by the new coronavirus, these numbers are likely to increase even more.
People are choosing to purchase products and order them to be delivered to their homes, but the problems of urban distribution persist.
Greater challenges for urban cargo transportation
The challenges of urban cargo transport can be summarized in 5 main points. See what they are:
1. Lack of security
The first obstacle to urban cargo mobility is the lack of security in cities across the country.
Violence, assaults, thefts, cargo theft, among other problems, are everywhere, causing carriers to suffer losses.
In the last few years, there has been a very large growth in cargo theft, caused by the lack of security.
This was even more felt in regions of greater activity in the modality, such as, for example, in the state of São Paulo and Rio de Janeiro.
2. Infrastructure
The infrastructure of cities also causes major disruptions to the activity of urban distribution.
Unfortunately, there is not a large investment in urban planning and improvement of the streets and avenues of cities in the country.
This makes fleet vehicles wear out more easily, as well as making it difficult to reach specific locations.
3. Increase in the tax burden
As in all commercial and business activities, the increase in the tax burden ends up consuming a large part of the companies' revenue.
With carriers, this is no different. The high costs of taxes and fees also make urban distribution work very difficult.
4. Slow traffic
Customers are increasingly concerned about how quickly their products reach their homes.
Nobody else wants to wait and the world is getting faster. Unfortunately, the speed of deliveries is hindered by traffic conditions.
This is especially true in cities with a high flow of vehicles on the streets.
The lack of traffic planning and consultancy means that the urban distribution of cargo is compromised.
5. High values
Finally, high values mean that carriers are not always able to be profitable as they should.
The above challenges and the impediment of the circulation of large cargo vehicles make the costs of urban distribution even higher.
See the work of Fadel Transportes e Logística
For 20 years, Fadel Transportes e Logística has operated with a urban freight transport high-quality.
The company has faced the challenges mentioned a long time ago and today it knows how to deal with them in order to offer the best solutions to its customers.
Contact Us with Fadel Transportes e Logística to find out more!
See also: What is the importance of transportation in the logistics process?