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Over the past five years, the recognition of e-commerce has skyrocketed. In the primary quarter of 2024, online transactions accounted for 15.9% of all retail sales, in keeping with the Federal Reserve Bank. Against this, e-commerce made up 10% of all retail transactions in the primary quarter of 2019.
This rapid increase, coupled with the continuing demands of traditional retail and escalating consumer expectations, has forced large retailers to administer an increased volume of every day deliveries. Consequently, shippers are actually required to stick to stringent delivery requirements. Because of this, the common enterprise shipper currently pays as much as a staggering $14.6 million in on-time, in-full fees (OTIF) yearly, in keeping with a 2024 shipper research study conducted by Flock Freight.
To avoid racking up excessive fees and risking bad reviews from customers, many shippers opt to maneuver their freight via full truckload in an effort to meet stringent delivery expectations. Corporations often do that even in the event that they wouldn’t have enough freight to fill the complete truck.
Flock Freight’s study found that 43% of truckloads moved partially empty in 2023. On average, those partially filled trucks had 29 linear feet of unused deck space. These businesses find yourself paying to ship over half a truckload of air.
Based on Flock Freight’s findings, partially empty truckloads added as much as the equivalent of 1 in 4 trucks moving completely empty last yr. Those empty miles threaten shippers’ bottom lines and the environment.
When shippers select to maneuver truckload, they’re typically doing so in an effort to ensure an on-time delivery, prevent shipment damage or each. Flock Freight’s research study revealed that 16% of shippers often booked truckloads because they weren’t confident every other mode would deliver their freight on time. The identical study found that 25.5% of shippers booked truckloads to avoid shipment damage.
Rising costs have prompted shippers to utilize as much space on a truck as possible, with over 46% of shippers surveyed by Flock Freight waiting more often to fill a truckload over the past two years. While this effort has a positive impact, it has not entirely solved the issue since 43% of truckloads still moved over half-empty in 2023.
There may be one other solution for shippers searching for quick, truckload-quality service without wasted space and increased carbon emissions. Flock Freight has created a standout Shared Truckload option that enables shippers with freight moving along similar routes to pool their products together and optimize trailer capability.
FlockDirect®: Using AI to unravel America’s partially empty truckload problem
Leveraging machine learning, Flock’s patented technology finds and fills the empty space in trucks by moving freight on probably the most efficient routes, creating significant value for shippers, carriers and the environment.
Flock Freight’s Shared Truckload service, FlockDirect®, ensures that freight stays on the identical truck from pickup to delivery, greatly reducing the possibilities of harm, delays and theft.
Flock’s operations research and machine learning algorithms match locations, schedules and compatible shipments, finding the very best options to pool freight amongst trillions of possible combos.
Example of a recent pool with 79% trailer utilization
Flock recently executed a cross-country long-haul pool that spanned from Southern California all of the option to the Northeast region.
To tug this off, the carrier launched into a 2,859-mile journey hauling a trailer loaded with food and retail products from two Flock customers. Each shipments required pickup and delivery appointments, which Flock successfully serviced.
When these Flock customers selected Shared Truckload service as a substitute of paying for 2 separate dedicated truckloads:
- Customer A saved 25.7% on their 22-linear-foot shipment.
- Customer B saved 29.8% on their 20-linear-foot shipment.
- TL trailer utilization increased from the 45% industry average to 79%, reducing emissions by 4.7 metric tons of CO2e.
By opting to maneuver their shipments via FlockDirect®, these shippers are a couple of of the hundreds helping solve America’s partially empty truckload problem with Shared Truckload.
Click here to learn more about how Flock Freight can provide help to stop paying to ship air.
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