Road Freight Procurement Intelligence

In this road freight procurement intelligence report, we have assessed the pricing of the major cost components such as cost of vehicles, fuel, labor, technology, licensing compliance, maintenance repair, and others. Other costs include safety equipment, general administrative, rent utilities, loading unloading, road taxes tolls, and marketing sales.

In May 2024, the ‘TEG Road Transport’ Index, a metric used to track and measure changes in the ‘price per mile’ cost of the U.K.’s transport industry, continued its upward trend as it reached 122.8, witnessing a rise of 3.4% as compared to April 2024. Moreover, the ‘Hauler Vehicles’ index (used specifically for tracking heavy duty haulage in the U.K.) reached 118.5 in May 2024, also showcasing a 3.4% rise as compared to April 2024. The upward trend in the points/prices of both indices mentioned above can be attributed to inflation, seasonal trends, and driver shortages.

Road Freight service providers often use one of many pricing structures. One of the key pricing models being used is flat-rate pricing. In this pricing structure, a fixed fee is applied to a designated route or shipment, irrespective of weight, volume, or distance. It is commonly employed for standardized routes or regular shipments with consistent variables. Another prevalent pricing model being utilized is mileage-based pricing, where the cost is determined according to the distance traveled. This approach entails charging a fixed rate per mile and is commonly applied in long-haul transportation, where the predominant factor influencing costs is the distance covered. Other key pricing models used in this industry are volume-based pricing, weight-based pricing, spot pricing, and contract pricing.

Order your copy of the Road Freight category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Operational Capabilities - Road Freight

• Geographical Service Provision - 25%
• Industries Served - 20%
• Years in Service - 15%
• Employee Strength - 15%
• Revenue Generated - 15%
• Regulatory Certifications - 5%
• Key Clientele - 5%

Functional Capabilities - Road Freight

• Freight Type (FTL/LTL) - 20%
• Maximum Weight per Shipment - 15%
• Containerized/Non-Containerized - 15%
• Long-Haul/Short-Haul - 15%
• Temperature Controlled - 10%
• Real-Time Tracking - 10%
• Value-Add Services (Storage/Labeling/Bundling/Packing) - 5%
• Lead Time - 5%
• Others - 5%

Rate Benchmarking

The average prices of FTL in the U.S. in 2024 (H1) were in the range of USD 2.1 to USD 2.5 per mile. During the same period, the prices in the U.K. spanned between USD 2.0 and USD 2.4 per mile, those in India spanned within USD 1.0 to USD 1.3 per mile, and those in Japan fell within USD 1.8 to USD 2.2 per mile. The average LTL prices in the U.S. during the same period (H1 2024) spanned within the range of USD 0.30 to USD 1.60 (measured per pound). The LTL prices in the U.K. fell within the range of USD 0.25 to USD 1.45 per pound. Those in India spanned within the spectrum of USD 0.20 to USD 1.15 per pound, and the Japanese LTL rates spanned from USD 0.25 to USD 1.50 per pound.

Supplier Newsletter

• In February 2024, C.H. Robinson Worldwide, Inc. introduced an innovative technology to streamline freight shipping by eliminating the need for manual and separate appointment scheduling at pickup and delivery locations. The innovation includes using touchless appointments to enable complete automation of the scheduling process, allowing for round-the-clock support.
• In February 2024, FedEx Logistics and FedEx Express, (both divisions of FedEx Corp.) partnered to upgrade their ‘Less-than-Container Load (LCL)’ service. The upgradations/innovations include seamless customs-cleared solution, facilitating both door-to-door and port-to-door shipments, improved balance concerning affordability and speed, and enhanced productivity. The upgraded version efficiently links the APAC region with MEA through a seamlessly integrated road and ocean network.
• In November 2023, United Parcel Service of America, Inc. (UPS) finalized the acquisition of MNX Global Logistics, a prominent global provider of ‘time-critical’ services in logistics. This acquisition has enhanced UPS's capabilities in time-sensitive logistics, particularly benefiting healthcare clients across the U.S., Europe, and APAC. MNX’s specialized proficiency in transporting temperature-sensitive products and radiopharmaceuticals has bolstered UPS’ clinical trial logistics arm, Marken, in meeting the escalating demand from the healthcare sector.

List of Key Suppliers

• A.P. Møller - Mærsk A/S
• C.H. Robinson Worldwide, Inc.
• CMA CGM Group
• DSV A/S
• Expeditors International of Washington, Inc.
• FedEx Corporation
• J.B. Hunt Transport Services, Inc.
• Knight-Swift Transportation Holdings Inc.
• Kuehne + Nagel International AG
• Landstar System Holdings, Inc.
• Old Dominion Freight Line, Inc.
• United Parcel Service of America, Inc.

Browse through Grand View Research’s collection of procurement intelligence studies:

• Disposable Medical Gloves Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement Operating Model, Competitive Landscape)
• Loyalty Programs Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement Operating Model, Competitive Landscape)
• Helium Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement Operating Model, Competitive Landscape) 

Road Freight Procurement Intelligence Report Scope 

Our services include (not limited to): 

• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.