State of the Industry Report August 2023

Industry Insight from RXO Experts

RXO Retail and Ecommerce Market Update​

2023 has been an unpredictable year for the logistics industry, and it’s still hard to anticipate what peak season will look like. However, we are seeing some positive signs that are keeping us optimistic. Inventory levels are in a much better position than they were last year, so retailers are more prepared to adapt to the dynamic market we are seeing now.

On the other hand, we’re not sure if consumers will continue spending their money on experiences and travel, or if they will turn to retail in the coming months. Leading retailers are noticing that while customers are still spending money, their purchases are focused more on essential goods. Fortunately, the destocking that occurred during the last year has put companies in a better position to respond to consumer trends.

With many companies entering the RFP season, customers need partners who can scale to meet the changing needs of their businesses. No matter what happens in the supply chain environment, RXO’s deep customer relationships ensure we know what the customer requires across multiple modes of transportation, and our operations team members can pivot quickly to solve those needs.

Lyndon Cron
Senior Vice President, Sales


RXO in the News

RXO Named Great Supply Chain Partner by SupplyChainBrain

The list is compiled annually based on nominations from manufacturers, retailers and other customers in supply chain.

RXO Announces Results for Second Quarter 2023, Including Double-Digit Brokerage Volume Growth

Brokerage business continues to gain significant market share and recorded 10 percent volume growth year-over-year.

Top Industry News

6 Charts Reveal Freight Industry Is Bouncing Back​

Tender rejection rates have hit their highest level in 6 months.​ Assuming that higher volumes remain persistent and capacity continues to leave the market, higher freight rates are on the way.

Chart: Outbound Tender Reject Index – USA. FreightWaves SONAR ​

How Cross-Border Operations in Mexico Are Transforming Supply Chains & Diversifying Manufacturing

RXO’s Demetri Venetis, President, Freight Forwarding, discusses how diversity will be key to maintaining a healthy supply chain for customers with Supply and Demand Chain Executive.

RXO’s facility in Laredo, TX

Border Town Boom is Realigning the Freight Market​

Truckload demand has nearly doubled out of the border town Texas markets of Laredo and McAllen since 2018. Phoenix has experienced a similar developmental boom, becoming a proxy for California’s old warehousing capital in Southern California’s Inland Empire. This shifting demand pattern is changing transportation networks and will subsequently impact future pricing structures. ​

U.S. and Global Macroeconomics

Jump In Key Diesel Price Brings Gains To More Than 70 Cents Since July 3​

Market concerns about supply eased as a large Louisiana refinery snapped back from a fire.

Contract Rate Decline Takes Pause Despite Significant Spot Market Discount​

Long-term truckload rates stabilize over the summer.​

US Economic Growth for Q2 Revised Down to 2.1%​

Commerce Department’s estimate of growth marks slight acceleration from 2% annual growth rate in Q1.​


Managed Transportation

Capabilities of 3PLs vs 4PLs

When outsourcing your logistics operations, many are faced with the option of a 3PL versus a 4PL solution offering. While both options offer similar services, they are drastically different when it comes to core responsibilities and scale. Find out which option suits your logistics needs best.

Chart: Outbound Tender Reject Index – FreightWaves SONAR ​

Truckload and LTL​

Truckload Capacity Tightens In August​

The national Outbound Tender Reject Index (OTRI) topped 4% this month for the first time since early January, when it was recovering from the holiday period. While 4% is still indicative of a very loose market, the timing and direction of the OTRI are signaling that the softest conditions may be in the rearview mirror. ​

Truckload and LTL​

Trucking Numbers In BMO Earnings Again Show Weakening Credit Performance​

Allowances, write-offs and impairments all up for 3rd quarter at major lender to industry.

Modes Overview

Infrastructure and Regulation

Yellow’s Shutdown Opens Up LTL Market for Competitors​

The Yellow Corp. shutdown is having a downstream effect on the less-than-truckload space as freight volumes flow toward competitors.

US Consumer Confidence Wanes With Prices Still High​

The Conference Board’s Index drops to 106.1 in August from a revised 114 in July.

Americans are feeling less confident financially as summer comes to a close and high prices and interest rates weigh on their willingness to spend.


Traffic Deaths Fall 3% in First Half of 2023, Report Finds​

Still, National Safety Council notes nine states and D.C. had double-digit increases.​

Cross-border: Mexico, Canada and International

Mexico Truck Driver Strike Delayed After Officials, Carriers Reach Deal​

Mexican trucker alliance had scheduled major protests, road blockades.

US-Mexico Cross-border Trade May Hit $1 Trillion By 2028​

International trade between the U.S. and Mexico could top $1 trillion within the next five years, according to U.S. Rep. Henry Cuellar, D-Texas.

US Calls for Dispute Panel in Spat with Mexico Over Corn Trade

Mexican officials want to ban genetically modified corn from its food supply chain​



Cruise, Waymo Cope With Robotaxi Backlash in San Francisco​

Hostility threatens to stifle growth of technology, send business elsewhere.

Why the EV Industry Is Talking About ‘Black Mass’​

‘Black Mass’ is the literal description of intermediate product from recycling spent EV batteries or scrap from battery plants.


Toyota to Resume Japan Plants After Rare System Malfunction​

Malfunction made it impossible to order parts, affecting 28 assembly lines.

Initiatives – Safety and Sustainability​

FMCSA Seeks Advice On New Safety Rules For Carriers​

Agency wants to get better at identifying and shutting down unsafe trucking companies.

Federal regulators are asking for public feedback on finding a new way to determine whether motor carriers are safe to operate on the nation’s roads.

CVSA Inspections Find Violations in 30% of Hazmat Packages​

Commercial Vehicle Safety Alliance inspectors found violations with more than three of every 10 hazardous materials/dangerous goods packages inspected during a five-day unannounced special enforcement initiative June 12-16.