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 Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement (NAFTA) partners Canada and Mexico increased 4.4 percent from August 2013 to August 2014 at $100.6 billion.

As expected, global trade dipped from August to September but still saw annual gains, according to data issued this week by Panjiva, an online search engine with detailed information on global suppliers and manufacturers.

Transportation and logistics merger and acquisition (M&A) activity in the third quarter saw annual gains, which were driven by smaller deals in the trucking logistics, shipping, and passenger air sectors, according to data issued in the Intersections report by PwC this week.

With the holidays rapidly approaching, it appears retailers are not quite done getting inventory set up and on the shelves in time for what is expected to be a fairly active shopping season. That much was evident based on recent data for September volumes issued by the Port of Los Angeles (POLA) and the Port of Long Beach (POLB).

Join Industry Expert Adrian Gonzalez for this educational webinar on the tenets and the benefits of Closed-Loop Operational Management. You’ll learn how Closed-Loop Operational Management optimizes orders, inventory, and transportation concurrently, and how it is able to optimize large-scale problems on a daily basis.

Article Topics

Blogs · All topics

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA