Challenges Facing The Haulage Sector In Nigeria
In the current globalized business environment, logistics plays a vital role in trade facilitating and has become a key element in business operations’ success.
However, before I go deep into the challenges facing the haulage industry in Nigeria, Let’s take a brief introduction on Haulage and what’s all about.
What is Haulage?
Haulage is the movement of commercial products and goods from one place to another. Items from furniture and home appliances to farm machinery and produce are transported by road and rail across the country.
Products are transported to both customers and distributors, depending on the type of business. Hiring an experienced company to move goods ensures they are safely, securely, and promptly delivered to where they need to go.
Haulage is a great way to move your goods or items around. The term refers to the business of moving freight, or goods, from one place to another. There are a number of different haulage types to choose from, depending on the destination or type of goods or items that you want to transport. Here’s a quick overview of some.
- Fuel Costs: Unsurprisingly, fuel costs pose a significant challenge to logistics companies. The industry is unable to keep up due to the recent rise in fuel costs, especially diesel. These high fuel prices are likely to affect transportation costs in Nigeria in the form of increased fuel charges.
- Economy: The credit crisis and rising inflation are harming the Nigerian economy. This crisis has resulted in increased regulations, decreases in demand, and, most importantly, the increase in marginal and fixed costs, further reducing the logistics industry’s profitability.
- Environmental Issues: The majority of average corporate CO2 emissions occur in the supply chain, which has increased the requirement for more transparent and accountable practices from logistics companies. Furthermore, anti-idling laws and other environmental-related initiatives taken by the local and state government poses the threat that compliance will exceed their benefits.
- Improved Customer Service: Gone are the days when people used to wait weeks for their shipment without making any inquiries. Customers now want real-time transparency on their delivery, such as the exact location of the shipment. Courtesy of the advanced technology available, the location of shipments is as linked as a social network, therefore, trucking and logistics companies must also bear the expense to facilitate these online services, which can be very expensive and time-consuming, especially for small and mid-sized companies.
- Onboard Truck Technology: The rapid advancement in technology, as we previously discussed, has created many challenges for trucking and logistics companies to stay up-to-date with upcoming promotions. Though these latest technologies seem attractive, their implementation can be quite challenging.