Industry Insight from RXO Experts
RXO Industry Update
Specifically looking at the e-commerce and retail verticals, while brokerage volumes decreased year-over-year in the first quarter, the rate of change improved from the fourth quarter. In addition, the load-to-truck ratio is the lowest that I’ve personally seen in my career at 2:1, which to me shows that a shift is coming. Finally, we’re listening to what our customers have to say and are assessing their needs. Many of these conversations are focused on restocking.
Drew Wilkerson
CEO
RXO in the News
RXO Announces Q1 2023 Earnings
Despite current market challenges in the first quarter, RXO continued to deliver solid results with 6% brokerage growth.
Two RXO Leaders Named to Charlotte Business Journal’s 40 Under 40 List
Honorees were selected based on noteworthy leadership, professional accomplishments and contributions to greater Charlotte.
What to Look for as Logistics Industry Preps for Back-to-School Season
Peak season expectations are some of the most currently discussed topics in logistics, but there is another key consumer metric not being considered: back-to-school shopping season.
Just like ordering for the holidays, this season — which usually runs from mid-July through early/mid-September — follows a similar pattern of calendar predictability. The planning and ordering happens at the same time every year. Orders could be similar to last year, says RXO CEO.
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Top Industry News
Companies’ Drive for Expanding Margins Threatens Future Freight Demand
The Producer Price Index (PPI), which measures the input costs for goods, has fallen 8% since last summer. The Consumer Price Index (CPI), which measures what consumers pay for goods and services, has kept increasing. Companies are still trying to get their margins back to pre-pandemic levels with price increases on finished goods. This will continue to put freight demand at risk in the second half of the year.
US and Global Macroeconomics
FTR Shippers Conditions Index Remains on a Growth Track Despite Sequential Decline
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.
Shipments, Costs Decline Further in April but Inflection Coming, Cass says
‘US freight transportation industry on the verge of a new cycle’.
Diesel Prices Slip 2.8¢ to $3.855
National average diesel prices have fallen every week since a 1.8-cent increase April 17.
Truckload and LTL
Q&A: Jared Weisfeld, Chief Strategy Officer, RXO
Logistics Management Group News Editor Jeff Berman recently spoke with Jared Weisfeld, Chief Strategy Officer, for Charlotte-based RXO, the fourth-largest full truckload broker in the United States, and asset-light transportation services provider. Weisfeld provided Berman with a broad overview of how RXO views current market trends, including inventories, what may be in store for Peak Season, and capacity management, among others.
Supply Chain Index Hits All-Time Low in April
Transportation capacity continues to expand, rates remain depressed.
Modes Overview
- Good Time to Rework UPS Contracts, Consultant Says. More from FreightWaves.
- Strike Ahead? What to Watch as UPS and Teamsters Negotiations Unfold. More from FreightWaves.
- Container Shipping Under Pressure as Peak Season Hopes Dim. More from FreightWaves.
- Optimism Fades for Airfreight Recovery on Slow-Healing Inventories. More from FreightWaves.
- Freight Rail Stakeholders Lay Out their Challenges Before Congress. More from FreightWaves.
- RXO Makes Dedicated Freight Accessible, Desirable for Shippers and Carriers. More from FreightWaves
- Canadian Pacific Kansas City expands Mexico intermodal reefer rail service. More from FreightWaves.
Infrastructure and Regulation
EPA Seeks Information by June 5 for Clean Energy Programs
The U.S. Environmental Protection Agency is seeking information by June 5 on zero-emission heavy trucks, fueling infrastructure and carbon-free port equipment to craft its clean port and heavy vehicles programs.
Daimler Truck, Toyota, Others Join Forces on Ecological Tech
Daimler Truck Holding, Mitsubishi Fuso, Hino and Toyota Motor Corp. announced the merger after concluding a memorandum of understanding focused on accelerating the development of advanced technologies. The focus will be on environmental, autonomous, connected and electric mobility technologies. They also aim to strengthen their commercial vehicle business globally.
Why Ford Chose Tesla for EV Partnership: It’s the Plug
The problem isn’t the cars, but the plugs that power them, Jim Farley said during a Morgan Stanley summit last week. Survey after survey show that America’s patchwork of often shoddy chargers is the biggest obstacle to consumer acceptance of EVs.
Cross-border: Mexico, Canada and International
Laredo, Texas, Remains the Nation’s No. 1 Gateway for International Trade
For the second straight month, Laredo, Texas, retained the No. 1 spot among the nation’s 450 international gateways for trade.
Experts See Strong Cross-Border Flatbed Demand this Year
Cross-border flatbed trucking could prove to be the most durable segment of the trucking market in 2023, according to experts.
Truck Inspections Causing Long Wait Times at Texas Border Bridges
As nearshoring expansion in Mexico continues to create booming demand for border Wait times of 8 hours reported for commercial trucks arriving in US from Mexico.
Technology
Hyundai Motor, LG to Build $4.3bn EV Battery Factory in U.S.
Hyundai Motor Group and LG Energy Solution said on May 26 they will build a battery factory in the U.S. to supply Hyundai’s electric vehicles there, as they are eager to benefit from American subsidies.
Six Digital Supply Chain Trends That Are Happening Now
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.
Biden Trade Curbs on China Risk Huge Damage to U.S. Tech Sector, Says Nvidia Chief
The Guardian reports that Jensen Huang said curbs introduced by the Biden administration, which include restricting the export to China of advanced chips made with U.S. technology, had left the business with “our hands tied behind our back.”
Initiatives – Safety and Sustainability
Self-Driving Trucks Becoming Common on North Texas Roads
The North Texas area has quietly become the new frontier for the development of self-driving trucks, with several companies from around the world setting up operations — and using North Texas highways for real-world testing.