Reducing emissions top priority in US transportation sector: Survey

The 2023 State of Transportation study surveyed 500 US transportation leaders, including carriers and shippers.

Ninety-nine per cent of shippers agree they would take advantage of electric or alternative energy vehicles if carriers in their networks offered them—and 79 per cent strongly agree.

Transportation leaders feel pressure from all sides to improve freight sustainability. Nearly all (94 per cent) agree consumer demand for more sustainable products makes reducing emissions a bigger priority in the next 12 months. And business leaders seem to recognize consumers’ desire for increased sustainability.

Internally, direction to prioritise emissions reduction comes from the top, with 42 per cent of transportation professionals saying pressure to improve transportation sustainability most often comes from the C-suite. But making headway on emissions reduction goals appears daunting in the current economic climate, the study found.

Three in five transportation leaders (61 per cent) believe ongoing macroeconomic forces will make it nearly impossible to meet emissions reduction goals over the next 12 months.

An additional 33 per cent believe it will be somewhat difficult, with only 4 per cent believing current economic conditions will have no impact on their company’s ability to meet emissions reduction goals, it said.

Breakthrough empowers shippers with data, technology and market knowledge to reduce cost, create fair partnerships and improve transportation network efficiency and sustainability.

Macroeconomic trends like inflation, economic growth rate, employment growth rate, government policies and regulations, trade, and industrial production continue to cause headaches for transportation leaders this year, the survey found.

Of the top challenges for the next 12 months, volatile diesel fuel prices ranks highest on transportation leaders’ list of concerns. With cost pressures mounting on all sides due to inflation, it is understandable transportation leaders are eager for relief, the company said in a release.

Unfortunately, they won’t find it in linehaul rates. Nearly two-thirds (63 per cent) expect linehaul rates to remain higher than average over the next 12 months, a product of increased labour and equipment costs.

Capacity, however, will be easier to procure for transportation leaders this year. The capacity constraints of the past few years have eased, and may ease further, with 59 per cent of transportation leaders predicting that freight capacity will be more available over the next 12 months.

It’s a trend that will enable decision-makers to reprioritize strategic planning because the current range of available options offers space to make adjustments to their networks, the company noted.

Top challenges affecting transportation networks over the next 12 months are volatile diesel fuel prices (51 per cent), limited freight capacity (37 per cent) and driver shortages (36 per cent).

With capacity loosening, now is a good time for transportation teams to reevaluate their partnerships and ensure they are investing in strategic relationships.

Another positive trend is that transportation leaders feel prepared to address market uncertainty. Nearly all agree their teams have the right tools (97 per cent), partnerships (96 per cent) and staff (92 per cent) to effectively navigate transportation challenges in 2023.

However, there may still be opportunities to fine-tune operations in these areas, with roughly a third saying they ‘somewhat agree’ versus three-fifths saying they ‘strongly agree’ in each category.

In particular, new tools and partnerships may help transportation teams achieve their goals and overcome challenges over the next 12 months.

More than half of transportation leaders agree a more cost-effective fuel reimbursement strategy and more visibility into their networks would be most beneficial—two areas where transportation data and technology partners can provide support, the study added.

Fibre2Fashion News Desk (DS)