Averitt’s ‘State of the Supply Chain Survey’ presents an optimistic tone for 2024

Results from the annual “State of the North American Supply Chain Survey,” which were issued earlier this month by Cookeville, Tenn.-based freight transportation and logistics services provider Averitt Express, examined various supply chain challenges shippers dealt with over the course of 2023.

The survey’s findings were based on feedback from more than 1,400 North American shippers across various sectors and was conducted late last year. Topics covered in the survey included measuring the use of and interest in various supply chain services compared to last year’s survey, if businesses are predicting an increase or decrease in shipments in 2024, how important a carrier’s sustainability program is to a shippers’ decision making, and identifying the biggest challenge with international shipments in 2024.

Key findings from the survey included:

• 67% anticipate increased shipping volumes in 2024—four percentage points higher compared to 2023’s results;
• 26% plan to use air cargo services in 2024 compared to 23% that planned to use the service in 2023;
• 20% plan to use rail services in 2023 compared to 17% that planned to use the service in 2023;
• when it comes to weighing the importance of a carrier’s sustainability program in decision-making, 46% of shippers said it was highly important, 37% said it was of medium importance, and only 17% said it was of low importance; and
• Customs clearance was reported as the biggest challenge for international shippers in 2023 with a 5-percentage-point increase in 2023 (29%) over 2022 (24%)

Addressing the 4% increase in projected 2024 shipping volumes, Averitt explained that in last year’s survey, the outlook was grim, with shippers calling for a 12% decline, from 2022 to 2023, representing the largest decline freight growth over the course of the survey’s history, according to Averitt. As for this year, Averitt called the projected 4% annual gain ”a positive sign for shippers and carriers alike.”

And it added that the volume projections for 2024, when contrasted with those of earlier years, suggest a return to a more stable freight economy.

“This is particularly evident when compared to the turbulent period of 2020-2022, the early years of the pandemic, which were marked by unprecedented uncertainty and a widespread strain on capacity across various sectors,” said Averitt. “The bigger question ahead for shippers and the general economy is whether we are entering a period of traditional and sustainable growth compared to the pandemic bubble, which deflated.”

As for sustainability, with nearly 50% of shipper respondents (46%) viewing it as highly important, Averitt observed that sustainability initiatives in the transportation industry are becoming increasingly vital for shippers and businesses involved in freight movement, primarily due to a combination of environmental, economic, and regulatory factors.

“[T]he environmental impact of trucking, a significant contributor to greenhouse gas emissions, is a major concern,” said Averitt. “By adopting sustainable practices, trucking carriers can significantly reduce their carbon footprint to align with global efforts to combat climate change. This is not just beneficial for the environment, but also aligns with growing consumer and investor demand for environmentally responsible business practices. Moreover, governments around the world are tightening environmental regulations. Working with carriers that adhere to these regulations is essential for shippers to avoid legal penalties and ensure smooth operations. Additionally, sustainable practices often lead to increased operational efficiency and cost savings, such as through fuel-efficient driving, the use of alternative fuels, and improved route planning.”

Kent Williams, Executive Vice President, Sales and Marketing, for Averitt, said at this week’s SMC3 JumpStart 2024 in Atlanta that this year’s survey findings were enlightening, in that a year ago the survey’s findings were largely focused on capacity-related concerns and challenges, whereas in 2023 securing capacity was not as much of a key concern.

“[Shippers] were looking for savings, especially on the ocean side and on the truckload side, and we certainly dealt with those challenges,” he said. “There is optimism for 2024, with people looking for things to start improving and a little bit of mobility coming back to the economy in general. A lot of inventory seems to have come down from higher levels…which would indicate a return to normal.”