The Business Of Movement: Vacations Aren’t All Of It
When you think of traveling, you probably think of people going on vacations or business trips. However, there is a major part of the airline industry outside of travel. Approximately 60 percent of the profits received by airlines are from people who are traveling from place to place. The other 40 percent comes from frequent flyer miles, as well as the transportation of cargo. There are actually many airlines that are primarily dedicated to the transport of goods, rather than passengers.
All the same, the roads aren’t just for getting to school and soccer practice. The infrastructure of the United States is what enables the 700+ billion dollars worth of freight revenue to be shuttled around the United States each year. In fact, in 2014 alone, the American Trucking Association reported a bill of $39.9 billion dollars in taxes paid to the US government, a lot of which goes right back into improving the road infrastructure of the country. For everyday mail and packages FedEx and UPS come to mind, however there are some companies, like AuptiX, that can transport goods and wares for businesses in a cost effective manner and reduce the risk of damage to any of your products.
There is also intermodal freight transport, which entails shipments that travel using more than one vehicle, such as a shipment that gets to its destination via a truck, a ship, and a plane. These modes of transport are often used for international business shipping, but can also be used for personal use, in the case of someone moving overseas who wants to ship things in a storage container. in which case it is not possible to get the materials from point A to point B using just a vehicle on wheels. Additionally, many companies will use mail and air travel for the purpose of saving time.
The demand for freight transportation is mostly driven by the way economic activity is distributed in different areas. When the population of a certain place grows, the freight transportation to and from that place will rise with it. In the year 2013, US transportation was responsible for approximately 55 million tons of cargo being moved every single day, and these figures are only expected to get higher with each passing year. Additionally, it is expected that the value of the freight is expected to get higher compared to the weight of the cargo itself. This means that the trend is shifting towards more valuable merchandise being moved.
The business that is done by airlines and other modes of freight transportation no doubt impacts the economy. Considering that so much of the operation of the airlines is actually devoted to the transportation of cargo, it is obvious that this transportation of cargo has its own sizable effect on the economy of the countries where the businesses are located, as well as the global economy. Because of the nature of international shipping it is important for businesses to be able to pay for the goods in a way that will work in other countries. Luckily there are international money transfer services, such as Veem, that specialize in sending money to international partners.
Overall, freight transportation has become a significant part of what drives the economy, and it is only expected to become more significant as time goes on. This is meant to make life easier for the businesses themselves, as well as the clients that they serve. When items are being moved through various modes, it makes it so that these businesses are able to run more smoothly and satisfy their clients more effectively. Essentially, as these transportation modes are perfected, freight transport is going to become a bigger part of what drives the economy and will only become more important.