A recent study by Flock Freight and Drive Research reveals that in 2023, 43% of truckloads moved with partial loads, averaging 29 feet of unused deck space.
This means one in four truckloads were completely empty.
The study, titled Wasted Space, Wasted Dollars: The Economic Impact of Inefficient Freight, surveyed 1,000 transportation decision-makers across various U.S. industries, providing a comprehensive view of the challenges and strategies used to enhance efficiency.
“Historically, the U.S. truckload market has been locked into a binary concept of ‘full’ or ‘empty’ when it comes to trailer capacity. We are challenging both Shippers and Carriers alike to rethink this,” said Chris Pickett, chief operating officer at Flock Freight. ”With 43% of truckloads moving only partially full, there’s a massive opportunity for businesses to maximize trailer utilization and reduce overall transportation spend with our Shared Truckload solution.”
According to Flock Freight, the research highlights the hidden costs of LTL shipping. The average enterprise shipper gains up to $6.3 million annually in damage and loss claims.
Furthermore, unexpected fees and the time employees spend managing these issues significantly add to businesses’ financial burdens.
“Exiting a deflationary phase of the truckload freight cycle in 2024, the industry braces for heightened economic impacts,” a news release stated. “As a result, 90.8% of shippers have raised their budgets by 1 to 10% to navigate the expected market shifts.”
The study also revealed increasing concerns about fraud and theft within the freight industry.
In 2023, 89% of shippers were affected by these issues, with one in every 43 shipments impacted.
This not only results in direct financial losses but also causes a ripple effect, leading to reduced earnings, unexpected fines, and a decline in customer satisfaction.
For truck drivers, these inefficiencies can lead to longer hours on the road and decreased job satisfaction. Partially empty truckloads mean that drivers might need to take on more trips to meet delivery demands, increasing wear and tear on vehicles and personal fatigue. Additionally, dealing with issues like damage claims and theft can be demoralizing and time-consuming, further complicating workloads and impacting overall job performance and morale.
Source: The Trucker
