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.
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.
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
- Tough Quarter Starts the Year for UPS. More from FreightWaves.
- Strike Ahead? What to Watch as UPS and Teamsters Negotiations Unfold. More from FreightWaves.
- Container Shipping Warning: Green Shoots are ‘Transitory Illusion’. More from FreightWaves.
- Air Cargo Operators Still Feel ‘Hangover from the 2021 Party’. More from FreightWaves
- Sick Leave, Crew Consists Still on the Table Between Unions, Railroads. More from FreightWaves.
- RXO Makes Dedicated Freight Accessible, Desirable for Shippers and Carriers. More from FreightWaves.
- Running on Ice: New Reefer Unit, Who Dis? More from FreightWaves.
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.
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.
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.
Technology
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.
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.
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.