State of the Industry Report September 2023

 

Insights from RXO Experts

RXO Market Update

Shippers need flexibility now more than ever. Many are looking at innovative programs like drop-trailer solutions to improve their warehouse capacity and manage seasonal fluctuations or staffing challenges. These capacity solutions allow shippers to load and unload on their own schedule, reducing detention or layover costs. Recently, RXO announced the expansion of our Flex Fleet program, which gives shippers the ability to plan based on volume and efficiently utilize their limited warehouse space. Flex Fleet utilizes GPS and other sensors and is integrated with RXO Connect™, which provides customers with real-time data to help them manage their freight.

One thing we’ve learned since the global pandemic caused massive disruptions in the global supply chain is that shippers need options to help them respond to constant changes. Flex Fleet is just one of the ways RXO is helping our customers navigate today’s complex freight environment.

Lou Amo
President, Truck Brokerage

RXO in the News

RXO Named Official Supply Chain and Logistics Partner of the Carolina Panthers

The new partnership will support the Panther’s logistics needs for three years with RXO serving as the official “Carrier of the Game” for all home games.

Three RXO Leaders Named Recipients of 2023 Women in Supply Chain Award

The award features female supply chain leaders and executives whose accomplishments have set a foundation in all levels of a company’s supply chain network.

RXO Dedicated Transportation Named 2023 SmartWay High Performer

The EPA program focuses on producing more efficient and sustainable supply chain transportation solutions.

 

Top Industry News

UAW-Big Three Strike is Replete with Supply Chain Implications​

While the United Auto Workers (UAW) union strike against the “Big Three” of General Motors, Ford, and Stellantis (Chrysler’s parent company) has been ongoing since September 15, coupled with the number of employee walk-outs continuing to rise, the supply chain impacts and ramifications are likely to increase the longer the situation goes on, according various industry stakeholders.​

 

Top Industry News

Not Much Good News for Diesel Consumers in Latest Key Oil Report​

With few major revisions in supply and demand estimates from its report released in August, the closely watched report did highlight the imbalances in crude supply and demand as well as the markets for products — with particular emphasis on diesel — that is sending global crude benchmark Brent to more than $90 per barrel, with $100 increasingly in sight. 

U.S. and Global Macroeconomics

4 Ways to Ensure Your Nearshoring Operations Run Smoothly​

In today’s market, it’s vital for companies to fully optimize their cross-border shipping processes and find a trusted partner with the core competency to get them across the border on time.

Senate Leaders Have a Deal, but Shutdown Still Expected​

Senate Democratic and Republican leaders agreed Sept. 26 on a plan to keep the government open through mid-November and provide $6 billion in assistance to Ukraine.

Technology

Chatbots Are Trying to Figure Out Where Your Shipments Are​

Jared Weisfield, chief strategy officer, talks about how RXO is trying to increase efficiencies and make customer’s lives easier in an article highlighting logistics companies looking to use generative AI for use in customer support against the risks in high-value, industrial supply chains.

32nd Annual Study of Logistics and Transportation Trends: Navigating a shallow pool of resources​

Logistics operations are facing a human capital crisis that poses a threat to both performance and competitiveness. In this year’s study, our authors explore how organizations can compete for talent in an increasingly limited talent pool; how organizations are competing in an increasingly dynamic business environment; and examine the technologies that shippers now need to use to stay ahead of the curve.

 

How AI Will Revolutionize Shipping​

RXO’s CIO Yoav Amiel discusses how new technology solutions are making waves in logistics, especially around artificial intelligence (AI) and machine learning (ML). With huge potential for growth and supply chain improvement, logistics companies are using AI to build upon existing digital solutions and make them even more efficient

 

Truckload and LTL​

DAT’s August Truckload Volume Index Presents a Mixed Bag for Volume and Rates​

DAT’s data highlighted the following takeaways for truckload volumes, load-to-truck ratios, and rates, for the month of August.

DAT benchmark spot rate rose $0.02 over July, to $2.09 per mile, for its second increase in the last seven months, with the reefer rate up $0.07, to $2.51 per mile, and the flatbed rate down $0.03, to $2.54 per mile​.​

Modes Overview

Infrastructure and Regulation

Cargo Thefts from Trucks, Warehouses Spike During Q2​

CargoNet data shows $44M worth of goods stolen in US and Canada.

How Warehouses Are Escaping Real Estate’s Doom Loop

Demand and leasing rates are no longer red-hot, but the industrial real-estate sector is proving resilient.

Governor Vetoes Autonomous Trucking Ban in California​

Newsom sides with continued development, calls legislation ‘unnecessary’.

 

House Passes Internal Combustion Engines Legislation​

Legislation aiming to block efforts designed to prevent the sale of internal combustion engines was recently approved in the U.S. House of Representatives.

Cross-border: Mexico, Canada and International

Texas Resumes Truck Inspections Along Mexico Border Amid Migrant Surge​

Cross-border truck drivers are facing hours long wait times at two Texas ports of entry as an influx of migrants and renewed state-run truck inspections are disrupting trade flows between Mexico and the U.S.

Could Mexico Help Texas Become The US’ Largest Economy?​

Growing cross-border supply chains south of the border benefiting Lone Star State.

Canadian Grain Shippers Hopeful About Rail Service In Current Crop Year​

But shippers eye other potential supply chain issues.

Initiatives – Safety and Sustainability​

$1.4 Billion Committed to Rail Safety, Supply Chain Boost​

Funding to benefit 70 projects in 35 states, D.C.

“These projects will make American rail safer, more reliable, and more resilient, delivering tangible benefits to dozens of communities where railroads are located, and strengthening supply chains for the entire country,” Transportation Secretary Pete Buttigieg said in a statement.
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Run on Less Event Sees Big Improvements, Pleasant Surprises​

The North American Council for Freight Efficiency’s latest Run on Less program is largely producing pleasant surprises so far, including Tesla Semi performance that lives up to more than a little of the hype of recent years, according to the study group.