Chris Jamroz, CEO of Roadrunner, shares valuable insights on the challenges facing the less-than-truckload (LTL) market, including economic pressures and overcapacity. He highlights cautious optimism among businesses in anticipating a boost during the holiday shopping season, despite ongoing supply chain hurdles. Additionally, Jamroz discusses potential disruptions expected in early 2025, like those from Chinese New Year and upcoming tariffs, recommending proactive strategies to navigate these challenges.
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insights INSIGHT
LTL vs. Truckload
LTL and truckload trucking sectors differ, with LTL experiencing less extreme highs and lows.
LTL involves multiple customer shipments per trailer, offering cost savings versus truckload's single-customer model.
insights INSIGHT
Truckload Influence on LTL
Truckload rates influence LTL demand.
High truckload rates increase LTL demand due to cost arbitrage, while lower rates decrease LTL demand.
insights INSIGHT
Inflation's Impact on Trucking
Inflation impacts trucking through increased costs like wages, insurance, and equipment.
Roadrunner mitigated inflationary pressures, earning high customer value rankings for managing pass-through rate increases.
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Our guest on this week's episode is Chris Jamroz, CEO at Roadrunner. It is no secret that the trucking industry has had a challenging couple of years. In addition to economic factors, like higher interest rates and inflation, truckers have also had to face too much capacity in the market and disruptions from several natural disasters. How has the less-than-truckload market weathered these storms and what are prospects for 2025? Our guest shares his insights.
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases despite continuing to battle challenging supply chain conditions. That’s according a report from DHL Express U.S. released this week; it’s DHL’s 2024 Peak Season Shipping Survey. The company surveyed small and medium-sized businesses to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
It seems like there’s always a new supply chain disruption right around the corner. This week a new report from trucking and logistics provider Averitt predicted the first month of 2025 could have more turmoil than usual. The Averitt report tracked three potential supply chain hurdles as we head into 2025: the disruptions caused by Chinese New Year (CNY), the looming threat of potential tariffs on foreign-made products that could be imposed by the incoming Trump Administration, and the unresolved contract negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX).
Supply Chain Xchange also offers a podcast series called Supply Chain in the Fast Lane. It is co-produced with the Council of Supply Chain Management Professionals. A series of ten episodes is now available on the "State of Logistics." The episodes provide in-depth looks into the current states of key transportation modes, such as trucking, rail, air, and ocean. It also looks at inventory management, 3PLs and more. All ten episodes are available to stream now. Go to your favorite podcast platform to subscribe and to listen to past and future episodes. The podcast is also available at www.thescxchange.com.
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