A new study revealed that the thirteen largest North American trucking companies — including J.B. Hunt Transportation Services, YRC Freight, and Swift Transportation — outsource a large percentage of their freight to smaller carriers.
Close To Half Of Freight Is Outsourced To Small Carriers
The study conducted by LaneAxis Virtual Freight Management says that the 13 biggest trucking companies outsource 42.29% of their freight to carriers with 6 or fewer trucks. According to the study, Hub Group, Landstar System, and TransForce Inc. all outsourced the largest percentages of their revenue to smaller carriers.
On the other end of the spectrum of the large carriers, Heartland Express outsourced only 4.67% of their freight. Old Dominion Freight Lines outsourced less than 1% of their freight.
Study Authors: Outsourcing Can Lead To Lost Loads And Inefficiencies
According to Lane Axis CEO Rick Burnett, the problem with outsourcing freight to smaller carriers is that shippers lose visibility of 42% of their loads. Burnett argues that many smaller carriers do not have the technology to give shippers real time information about their shipments, leading to lost loads and inefficiencies.
You can review the results of the study in the chart below.