Insight Sourcing Group Releases Transportation & Freight Market Executive Advisory
Insight Sourcing Group, North America's leading consulting firm focused on procurement optimization and Procurement Value CreationTM, today released its Transportation & Freight Market Executive Advisory. The report analyzes the current environment and provides key projections specific to industry sectors. For example:
- UPS and Teamsters agreed to a new contract avoiding a strike. FedEx announced a 5.9% GRI for 2024, which is lower than many expected and lower than where UPS wanted the benchmark to be set.
- The bankruptcy of Yellow Corp. may cause short-term pain for shippers, given that the company had roughly 10% market share, but is unlikely to create long-term disruption due to the fact that the company was not at full capacity. To best ensure continuity, Insight Sourcing recommends that LTL shippers actively communicate volume expectations with their current incumbent carriers and explore adding carriers to their networks.
- The truckload market has likely found its bottom as rates have finally ticked a few cents back up on a cost per mile, but rates are still down 50% from their 2022 peak. Shippers should expect to see strong savings on any rate negotiations or RFPs.
- The transpacific ocean freight market has found its bottom and has started to tick back up. However, rates are still more than 90% lower than the peak seen in 2022, with ongoing softness expected due to weak demand outlook.
The report provides projections specific to Dry Van Truckload, Flatbed Truckload, Less Than Truckload, Ocean Freight and Small Parcel. It also outlines the approach Insight Sourcing Group utilizes to optimize costs and puts forth several case studies.
"Today's environment requires companies to de-risk and find efficiencies in as many business operations as possible, and leading shippers are taking advantage of the current market conditions to optimize cost and service," said Jake Wojcik, Executive Vice President at Insight Sourcing Group. "This latest transportation report from our Logistics Center-of-Excellence will provide the intelligence procurement professionals need to achieve cost optimization even amidst lingering uncertainties."
The complete report is available online at: Transportation & Freight Market Executive Advisory
About Insight Sourcing Group
Insight Sourcing Group is the premier firm in North America exclusively focused on procurement optimization and Procurement Value Creationtm. Founded in 2002, Insight Sourcing Group's capabilities are designed to accelerate impact through the expertise of its 250+ procurement experts, its market-leading Category Center-of-Excellence model, and practices specializing in Advanced Analytics, Private Equity, Supplier Diversity and Energy Management & Sustainability. For 20 years, its deep bench of sourcing and category experts has executed over 7,000 sourcing projects, and within the last year alone, they have achieved over $2 billion in savings for clients. To learn more, visit insightsourcing.com.
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