State of the Industry Report April 2023


Industry Insight from RXO Experts

RXO Last Mile Market Update

“Consumers are becoming more comfortable with ordering big and bulky goods online, and delivering these goods requires special Last Mile expertise. There is also a large segment of Last Mile that delivers into the builder/new construction and home improvement space. Last Mile customers demand speed, reliability and precision. RXO has built a Last Mile solution to deliver in all three of these areas with highest level of excellence. Our unparalleled hub network puts us within 125 miles of 90% of the U.S. population, which allows us to get the product to the end consumer faster than any other third-party last mile provider. We have access to over 7,000 trucks in our network each day to ensure product is moving to the end consumers. And our proprietary technology delivers routing, scheduling, inventory management and customer satisfaction feedback all through the automated digital experience.”

Paul Boothe
President of Last Mile
Naperville, IL

RXO in the News

RXO Named a 2022 Supplier of the Year by General Motors for Fifth Straight Year

Award recognizes distinguished global suppliers that exceed GM’s requirements providing customers with innovative technologies within the automotive industry.

RXO Celebrates Grand Opening of Laredo Cross-Border Facility

Stationed in a prime position near the U.S.-Mexico border, new warehousing and distribution center will support customers’ nearshoring needs

Top Industry News

The Economy is in a ‘Freight Recession,’ with China Trade Decline Continuing

Ocean freight orders are down 50% year over year and it is impacting both rail and road transportation, which a trucking executive recently called a “freight recession.”

Volume of cargo to Port of New York and New Jersey has fallen, but it remains very close to California’s ports in activity.

The supply chain data fits into the broader picture of a contraction in global purchasing indexes, less spending on goods, and excess inventories.

Source: MHI, Deloitte

How 3PLs Are Building More Collaborative Supply Chains

3PLs, Shippers and Carriers are In It Together

RXO is investing in technology to streamline processes, gain a competitive edge and improve efficiency for their shipper customers and carrier partners

US and Global Macroeconomics

2023 Top 100 Logistics List Highlights Growth for 3PLs

The largest third-party logistics companies in North America remained in growth mode last year despite an uncertain economic environment and less favorable market conditions.

Freight Pattern Shifts Threaten Intermodal Growth Potential

Intermodal demand may be capped by inflexible infrastructure.

So this is what the Bottom of the Freight Market Feels Like?

Carrier sentiment in Q2 now negative; brokers and shippers still positive.

Chart: National Outbound Tender Reject Index – USA SONAR: OTRI.USA

Truckload and LTL

Truckload Capacity Flips from Unsustainably Tight to Unsustainably Loose

For the first time since the economy was shuttered in the early phases of the COVID-19 pandemic, the national Outbound Tender Reject Index (OTRI) has fallen below 3%, making early 2023 the softest sustained truckload market since the tender data history began in early 2018.


Truckload and LTL

Southern California Transportation Demand Plummets Below Pre-Pandemic Levels

Los Angeles creates nationwide freight balance and pricing problem.

Southern California truckload tender volumes are ~23% lower than April 2019, prior to the pandemic, while in total, national tender volumes are still showing growth versus four years ago.

Smart Solutions

Modes Overview

Infrastructure and Regulation

Ohio Derailment Cost Norfolk Southern $387 Million

Norfolk Southern announced April 26 that the Feb. 3 freight train derailment in East Palestine, Ohio, cost the Class I railroad $387 million, which impacted its first-quarter profit by 33.7% when compared with the same period a year ago.

FHWA Makes Grants Available to Lower Emissions at Ports

“We recognize the critical importance that truckers and freight play in the American economy and a lot of these bipartisan infrastructure grant] efforts are hopefully helping them and the United States to make sure the critical supply chain challenges are met for the 21st century,” FHWA Administrator Shailen Bhatt.

Source: FreightWaves

CTA, OOIDA Target Gonzalez Statements in Latest Filings in AB5 Case

Taking lead from earlier Prop 22 court victory, trucking groups say AB5 author targeted trucking

Cross-border: Mexico, Canada and International

Texas Border Bridge Cargo Operations Suspended to Assist with Migrant Influx

US border agents from El Paso’s Bridge of the Americas transferred to immigration duties.

Laredo, Texas, Again Top US Gateway for International Trade

South Texas port of entry ranked No. 1 in trade for 1st time in 3 years.

RXO Invests $30M, Expands Logistics Operation in South Texas

As nearshoring expansion in Mexico continues to create booming demand for border logistics facilities, truckload broker RXO recently opened a 127,000-square-foot freight facility in Laredo, Texas.

Source: Logistics Management

European Logistics in Times of War and Crises

The logistics industry in Europe has responded well to the generational disruptions experienced over the past few years.


Pete Buttigieg Eyes Expansion of Supply Chain Data-Sharing

A voluntary forum through which freight sector stakeholders can share information on supply chain issues is poised to expand, Transportation Secretary Pete Buttigieg recently told members of Congress.

Inspectorio Launches ChatGPT-driven AI Tool to Assist with Supply Chain Management

Using data from Inspectorio’s supplier ecosystem, the CAPA recommender guides corrective and preventative actions, reducing the need for manual investigations into supply chain issues.

GM, Samsung Plan New EV Battery Cell Factory in US

General Motors and South Korea’s Samsung SDI plan to invest more than $3 billion in a new electric vehicle battery cell plant in the United States, the companies said April 25.

They did not announce the intended location of the new factory, which is expected to begin operations in 2026, GM and Samsung SDI said in a statement.

Source: SeongJoon Cho/Bloomberg News

Initiatives – Safety and Sustainability

Traffic Deaths in 2022 Nearly Match 2021’s 16-Year High

The number of people killed on U.S. roadways decreased slightly last year, but government officials said the 42,795 people who died is still a national crisis.

Source: Matt Rourke/Associated Press
Source: Sono Motors NV

Solar Roofs Are Being Used to Power EVs

For about 40 years, car companies, startups and DIY enthusiasts have been pursuing the plugless electric car, one that could wirelessly recharge via photons. But as logistical and economic hurdles continue to stymie those projects, the more immediate future of solar-powered vehicles is becoming clear: smaller, lighter, cheaper systems built to subtly augment electric driving, rather than power it in full.