While there have been concerns over global economic growth, the U.S. economic recovery remains on track. Indeed, economic activity has continued to pick up pace in the U.S. recently.
The improving outlook for the economy augurs well for the transportation industry. In a recent blog, Wagner Logistics further noted the impact of lower oil prices on the economy and the transportation sector. Although oil prices have bounced back in recent weeks, they still remain well below the level seen in the middle of 2014.
Wagner Logistics notes that lower oil prices would provide the U.S. consumer with extra cash, which in turn will boost spending. This of course will benefit retailers. And as more merchandise makes its way across the country, the transportation sector will benefit.
Wagner Logistics further notes that as economic activity continues to expand there will not be sufficient carrier capacity to go around, and as a result shippers will look to private fleet operations to meet the requirements.
In this backdrop, On the Move Systems Inc. (OTCBB:OMVS), a company currently exploring new online tools to reduce costs and increase convenience in the tourism and travel industry and exploring new opportunities in trucking, is looking at a possible expansion into logistics trucking. The company’s decision to explore the logistics trucking area is based on "highly promising growth forecasts."
This morning, Robert Wilson, CEO of On the Move Systems, said that advances in technology and community collaboration is creating new opportunities. Wilson further stated that there are better ways to use under-used assets and create better efficiencies within the logistics sector.
OMVS, citing a survey from GE Capital Transportation Services, said that carriers plan to add more tractors, trailers and personnel to their fleets in the coming months. Further, the company noted that the robust growth in the U.S. economy is finally generating enough freight demand to substantially boost trucking revenue. At the same time, supply has been tightening, which will lead to significant rate increases.
OMVS’s plan this year is to market and develop new solutions that will enable it to compete alongside listed companies such as Con-Way Freight (NYSE: CNW), SAIA Inc. (NASDAQ: SAIA) and Old Dominion Freight Lines (NASDAQ: ODFL).
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