The 2014 TMW Transportation & Logistics Study offers the latest data and analysis related to rising rates, driver retention, utilization, maintenance cost control, gross margins, and other critical performance measures across a broad cross-section of North American carrier and brokerage businesses.
Available from TMW Systems and now in its second year, the industry benchmarking study has more than doubled the number of companies participating. Detailed results have been collected from more than 130 businesses representing the truckload irregular, truckload dedicated, and brokerage/non-asset segments.
Designed to assist transportation service providers in confirming industry best practices and benchmarking performance, the study presents data gleaned from more than 200 online survey questions spanning financial, operational and maintenance topics.
Study results highlight improved utilization and financial performance among many carriers, year-over-year, as well as the value in leveraging developed carrier networks to achieve stronger gross margins for brokerage/non-asset service providers. Insights addressed in the study include:
•Driver retention—Survey responses underscore the clear relationship between driver wages and retention. Length of haul and utilization also emerged as important factors in driver turnover.
•Rates—Truckload carriers in the study averaged 7% net rate increases, a trend of interest for brokerage and third-party logistics providers as well as shippers.
•Asset utilization—Many survey respondents successfully leveraged new technology to achieve gains in utilization. As one example, dedicated fleets that utilize planning optimization experienced an average year-over-year increase of 142 revenue miles per seated truck per week.
•Fleet maintenance—Participants reported greater difficulty in gaining visibility into equipment maintenance metrics than any other functional area, and most indicated they do not adequately track maintenance costs by equipment age group.
•Operating ratios and margins—A majority of participating asset-based businesses reported operating ratios of 96% or lower, a healthy increase over 2014’s results. Gross margin variations for brokerage and logistics service providers are also analyzed in the study according to operational mix.
Participants in the annual study survey receive a comprehensive version of the report that includes detailed response metrics for more precise benchmarking insights and KPI planning. Visit www.tmwsystems.com to download a summary version of the study and to sign up to receive the survey questions for the 2015 study.