Almost 40% of shippers told our annual Transportation Buying Trends survey last year that the higher rates and surcharges experienced since 2003 have affected their use of the different transportation...
Almost 40% of shippers told our annual Transportation Buying Trends survey last year that the higher rates and surcharges experienced since 2003 have affected their use of the different transportation modes.
Generally the shift has been away from using airfreight services with 77% of transportation service buyers indicating doing so and, to a much lesser extent, away from courier services. Marine services have been the greatest beneficiaries of modal shifts as shippers have moved overseas freight from air to marine. Rail has not benefited as much as would be expected, likely due to service issues. Trucking has generally been a beneficiary of modal shifts, with 56% of shippers indicating they are using more LTL trucking and 64% indicating they are using more TL trucking. But some freight has been shifted to rail.
The main reason for the modal shift, our research clearly indicates, has been concern over increasing truck prices with 46% of respondents who diverted freight from trucking to rail citing that as the reason. Poor truck service was an issue for only 9%.
Reasons for shifting freight from truck to rail
Trying to service new markets: 19%
Responding to customer requests; 25%
Decreasing rail prices: 9%
Increasing truck prices: 46%
Change to faster inventory times: 5%
Poor truck service or coverage: 9%
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