67
Chemicals
63 %
High value
60 %
Agriculture
Like last year, our 2024 survey found that price and reliability are the most important factors that shippers consider when they choose a motor carrier. But the number of shipping executives who name those as top concerns has fallen a bit. This year, 77% of shippers cite price as an important factor, vs. 87% in 2023. Seventy-three percent mention reliability this year, compared with 88% last year. One concern that has increased markedly is capacity. The trucking industry has seen a freight recession in recent history, making space on trucks easier to find. But perhaps shippers are eyeing a future when inflation will ease, consumers will start spending more freely, and a fresh burst of commercial activity will fuel demand for over-the-road transportation. Whatever the reason, 61% of shippers say that capacity is an important factor when choosing a motor carrier, compared with only 47% a year ago. More than half of our shipper respondents consider customer service and/or safety when choosing a trucking company. Sustainability is gaining some traction: 31% of shippers call that an important factor this year, vs. 20% in 2023. In addition, this year, for the first time, we asked shippers if a motor carrier’s technology plays a role when they choose a transportation partner. One-quarter of shippers told us that this is an important factor. SHIPPERS What are the most important factors to consider when choosing a motor carrier? 53 % Energy, oil, and gas 47 % Government 47 % Aerospace 43 % Events 30 %
SHIPPERS Have you experienced a shortage of truck capacity?
No 45 %
Yes 55 %
SHIPPERS Have you experienced rate hikes apart from fuel surcharges? Pundits may report a soft market for over-the- road freight, but it seems that many shippers still can’t always find the services they need. This year, 55% of shippers say they have experienced a shortage of truck capacity, up from the 47% who reported that problem last year.
SHIPPERS: FACTOR Price
77 %
Reliability
73 %
Capacity
61 %
Customer service
No 18 %
54 %
Safety
51 %
Coverage
Yes 82 %
46 %
Sustainability
31 %
Technology
25 %
Given the tight link between capacity and freight rates, it stands to reason that the number of shippers who have seen rate hikes would be tied to the number who have suffered capacity shortages. In 2024, 82% of shippers say they have experienced rate hikes apart from fuel surcharges, up from 74% in 2023.
44 Inbound Logistics • September 2024
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