Report: Country’s largest carriers outsource more than 40% of contracted freight


A report released last month by shipper-carrier connection platform LaneAxis concludes roughly 40 percent of freight contracted to the country’s largest carriers is subcontracted to smaller carriers.

Freight being outsourced to smaller carriers from their larger counterparts isn’t news to the industry, but LaneAxis says its report reveals the practice is more prevalent than previously thought.

The company’s report indicates that of the 13 publicly traded carriers it studied, 42 percent of freight bookings are eventually pushed to third-party carriers.

To determine the 42 percent figure it’s purporting, LaneAxis compared carrier’s freight-derived revenue to so-called “purchased transportation.” The difference between the two, says LaneAxis, equals the amount of freight outsourced to smaller carriers.

Read more here.

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