Transportation industry leaders have shifted their priorities in 2024, as cost concerns take a back seat to climate issues that can cause major supply chain disruptions.
That’s according to the 2024 State of Transportation report from transportation management technology provider Breakthrough, which offers sustainable fuel and freight solutions for shippers. In January, the company surveyed 500 U.S. transportation decision makers—350 shippers and 150 carriers—about their transportation goals, priorities, and predictions for the next 12 months. The results were published April 3.
Respondents listed extreme weather events—such as the months-long Panama Canal drought—as their number one transportation challenge this year, adding that such issues are pushing environmental sustainability initiatives to the top of their agendas. The majority of shippers surveyed—98%—said their organization has set sustainability goals for transportation, and 63% said they plan to fulfill specific sustainability certifications or standards, for instance. Freight market contraction and emissions reductions goals rounded out the top three challenges affecting transportation networks for all respondents this year.
Other findings include: 80% of all respondents said they believe capacity markets will tighten and rates will increase in 2024, and more than half said that establishing relationships with new partners than can help them increase efficiencies is a top goal for the year.
Those goals stand in contrast to what shippers and carriers were concerned most about in 2023, when volatile diesel fuel prices, limited freight capacity, and driver shortages were listed as the top three industry concerns.
“Cost concerns have temporarily fallen by the wayside given soft capacity market conditions, but that may not last,” according to the report. “Most transportation leaders expect linehaul rates to begin climbing before the end of 2024. At the same time, teams are facing service challenges due to volatile climate events against a backdrop of geopolitical conflict and heightened regulatory environment.”
The report also cited intensifying winter weather across the United States, flooding in California, and fallout from an active hurricane season as issues that have already contributed to disruptions in 2024.
