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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

Learn more

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.

Read more

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.

Read more
Chart: Outbound Tender Reject Index – USA. FreightWaves SONAR
 

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. 

Read more from FreightWaves
 


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.


Read more from SDC
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. 


Read more from FreightWaves


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.

Read more from FreightWaves

CONTRACT RATE DECLINE TAKES PAUSE DESPITE SIGNIFICANT SPOT MARKET DISCOUNT

Long-term truckload rates stabilize over the summer.

Read more from FreightWaves
 


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.

Read more from Transport Topics
 

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.




Read more from RXO
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.




See more from FreightWaves
 

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.

See more from FreightWaves

MODES OVERVIEW

PARCEL AND LAST MILE

 * Automation Underperforming for US Postal Service, Watchdog Says. More from
   FreightWaves.
 * Viewpoint: The Last Mile has Become the Hardest Mile. More from FreightWaves.

OCEAN, AIR AND RAIL CARGO

 * Houston Reports Record-Breaking Cargo Volumes in July. More from
   FreightWaves.
 * Wait for Airfreight Recovery Could Extend Deep into 2024. More from
   FreightWaves.
 * Norfolk Southern Says Outage Impact Could Last Weeks. More from FreightWaves.

DEDICATED TRANSPORTATION

 * RXO Makes Dedicated Freight Accessible, Desirable for Shippers and
   Carriers. More from FreightWaves.

REFRIGERATED TRANSPORTATION

 * Reefer Shipping Remains Resilient Despite 2022 Trade Contraction. More from
   Hellenic Shipping News.




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.

Read more from Transport Topics

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.

Read more from Transport Topics
 


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.

Read more from Transport Topics


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.

Read more from FreightWaves

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.

Read more from FreightWaves
 


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

Read more from FreightWaves


TECHNOLOGY

CRUISE, WAYMO COPE WITH ROBOTAXI BACKLASH IN SAN FRANCISCO

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

Read more from Transport Topics

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.

Read more from Transport Topics
 


TOYOTA TO RESUME JAPAN PLANTS AFTER RARE SYSTEM MALFUNCTION

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

Read more from Transport Topics


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.

Read more from FreightWaves

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.

Read more from Transport Topics
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