Over the past five years, the popularity of e-commerce has skyrocketed. In the first quarter of 2024, online transactions accounted for 15.9% of all retail sales, according to the Federal Reserve Bank. By contrast, e-commerce made up 10% of all retail transactions in the first quarter of 2019.
This rapid increase, coupled with the ongoing demands of traditional retail and escalating consumer expectations, has forced large retailers to manage an increased volume of daily deliveries. Consequently, shippers are now required to adhere to stringent delivery requirements. As a result, the average enterprise shipper currently pays up to a staggering $14.6 million in on-time, in-full fees (OTIF) every year, according to 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 move their freight via full truckload in order to meet stringent delivery expectations. Companies often do this even if they do not have enough freight to fill the entire 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 end up paying to ship over half a truckload of air.
Based on Flock Freight’s findings, partially empty truckloads added up to the equivalent of one in four trucks moving completely empty last year. Those empty miles threaten shippers’ bottom lines and the environment.
When shippers choose to move truckload, they are typically doing so in order to ensure an on-time delivery, prevent shipment damage or both. Flock Freight’s research study revealed that 16% of shippers often booked truckloads because they were not confident any other mode would deliver their freight on time. The same 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 problem since 43% of truckloads still moved over half-empty in 2023.
There is another solution for shippers seeking quick, truckload-quality service without wasted space and increased carbon emissions. Flock Freight has created a standout Shared Truckload option that allows shippers with freight moving along similar routes to pool their products together and optimize trailer capacity.
FlockDirect®: Using AI to solve 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 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 same truck from pickup to delivery, greatly reducing the chances of damage, delays and theft.
Flock’s operations research and machine learning algorithms match locations, schedules and compatible shipments, finding the best options to pool freight among trillions of possible combinations.
Example of a recent pool with 79% trailer utilization
Flock recently executed a cross-country long-haul pool that spanned from Southern California all the way to the Northeast region.
To pull this off, the carrier embarked on a 2,859-mile journey hauling a trailer loaded with food and retail products from two Flock customers. Both shipments required pickup and delivery appointments, which Flock successfully serviced.
When these Flock customers chose Shared Truckload service instead of paying for two 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 move their shipments via FlockDirect®, these shippers are a few of the thousands helping solve America’s partially empty truckload problem with Shared Truckload.
Click here to learn more about how Flock Freight can help you stop paying to ship air.
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