Current Logistics Model is the Opposite of Sustainable
The unprecedented growth of third party logistics and broker entities began in 2001, shortly after the terrorist attacks in New York and Washington, D.C. Coincidentally, that fateful autumn was precisely when Zip Xpress opened its doors for business.
Bad timing, maybe, but who can predict these tragedies; it had seemed like a good time to launch, with the economy in fairly decent shape, but we all took a hit when the Twin Towers fell. Soon, our economy started to slow and eventually fell into a full blown recession. As the downturn widened, manufacturers were saddled with lower prices in order to remain competitive, and the entire supply chain soon felt the sea change.
Carriers and all the associated support system of service business suffered in the chain reaction of recession. Jobs were cut everywhere in transportation; others were combined and folded into related duties for cost savings. Everyone was trying to make up for rising competition costs and for falling prices on virtually all goods.