October 14, 2008

Truckload still capturing most freight dollars

By DC Velocity Staff

Where are logistics managers spending their transportation money these days? According to the 17th Annual Survey on Trends and Issues in Logistics, 36 percent of a company's annual freight budget gets spent on truckload shipments. National less-than-truckload carriers are second, receiving on average 14.2 percent of a company's freight budget.

Besides freight dollar expenditures, the survey also found that companies are shying away from developing their own software and are turning to third-party logistics (3PL) companies for help in this area. Only 19 percent of survey respondents said they employ in-house software programs, compared to 27 percent the previous year. On the other hand, 24 percent of survey takers said they use 3PL-provided programs compared to 18 percent in 2007.