Subscribe to our free, weekly email newsletter!



NASSTRAC study takes wide look at shipper insights

By Jeff Berman, Group News Editor
April 12, 2013

A recently released study from the National Shippers Strategic Council (NASSTRAC), entitled “Freight Transportation 2013,” revealed many interesting takeaways on various links of today’s supply chain operations and performance.

NASSTRAC said that the objective of the study, which was based on feedback from transportation executives with manufacturers, retailers, wholesalers, and distributors, was to explore shippers’ perspectives of emerging trends in freight transportation with a focus on a wide variety of issues, including business strategy, collaboration practices, carrier selection, rates, capacity, mode selection, outsourcing, advocacy issues, technology, and sustainability.

Surveys like this are always helpful in assessing what factors are driving market conditions. And given the stop and start nature of the economic recovery, a highly partisan Congress, and a general amount of uncertainty, these findings come at an opportune time to really take stock of what is going on.

Here are some of the main findings of NASSTRAC’s “Freight Transportation 2013” study:
-nearly 90 percent of respondents said their companies have long-term supply chain strategies of at least three years, with nearly 97 percent saying they have a transportation planning strategy that is tied directly to their overall supply chain strategy;
-nearly 33 percent said that collaborate with their providers for productivity gains, and an additional 54.9 percent said they collaborate with other shippers as well as their providers through things like network optimization, mode shifts, technology investments and enhancements, and reducing transit times;
-for carrier selection, shippers said they find the most import criteria to be rates (50.9 percent), reliability of on-time delivery (47.4 percent), and financial stability (18.4 percent);
-47.4 percent of shippers said LTL rates will increase and 45.6 percent expect truckload rate increases and early 33 percent expect increases in intermodal rates;
-37.7 percent of shippers said that that have moved to intermodal in the last year, with 42 percent noting it was to reduce costs, and 57.7 percent said a modal shift is in the cards for 2013;
-37.2 percent of shippers say they outsource 25 percent or less of their transportation spend to third-party logistics companies, and 23.3 percent outsource 26 to 50 percent of their freight spend;
-81.7 percent of shippers continue to make investments in transportation technology, with 42.1 percent focusing on TMS for route optimization and shipment aggregation

Looking at all this data, one could make the case that each of these segments could have their own individual studies. There is a lot to chew on in terms of gauging the market and how shippers are reacting to things, too.

Some findings, like rates, for example were not a huge surprise, but others like the somewhat low outsourcing numbers were unexpected, at least by me.

This was the inaugural study by NASSTRAC. I hope it continues going forward as it is replete with great information and data.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The Coalition for Transportation Productivity (CTP)called on Congress to take a close look at data recently issued by the Department of Transportation (DOT) in its “Comprehensive Truck Size and Weight Limits Study, ” and focus on reforming Interstate vehicle weight limits for six-axle trucks.

A recent report published by The Boston Consulting Group (BCG) and the Grocery Manufacturers Association makes clear the supply chain challenges consumer packaged goods (CPG) shippers are up against, with some of these challenges, specifically transportation-related ones, gaining traction in recent years.

Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk. Using the precise metrics captured in Armstrong’s most recent study, he'll demonstrate how shippers can measure ROI and plan for the future.

At $2.832 per gallon, the average price per gallon was down 1.1 cents, following drops of 1.6 and 1.1 cents the previous two weeks and a cumulative 8.2 cent cumulative drop over the last six weeks.

The index ISM uses to measure non-manufacturing growth—known as the NMI—was 56.0 in June, which edged out May by 0.3 percent.

Article Topics

Blogs · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA