Livetradingnews.com sits down for an in-depth interview with LaneAxis CEO and Founder Rick Burnett. The wide ranging interview touched on long-term plans for LaneAxis, including investment strategy, market positioning, and future development.
LaneAxis Virtual Freight Management recently published a report stating that the country’s largest Carriers outsource 42% of their contracted freight to smaller Carriers. This figure was based on a detailed study of 2015 financial reports from the country’s 13 largest publicly traded Carriers. LaneAxis focused on the percentage of total revenue spent on “Purchased Transportation” – as stated in the annual reports – to reach its conclusions.
Our findings generated widespread interest and a productive debate on the issue of Carrier subcontracting, and its true prevalence in the trucking marketplace.
A representative for a large Carrier suggested the 42% figure was “grossly inaccurate” based on his definition of “purchased transportation,” which he argued includes payments to owner-operators who work under the same MC Number as their larger counterparts. He claimed this practice does not amount to outsourcing.
CCJ (Commercial Carrier Journal), a leading voice in the world of fleet management and freight logistics technology, focuses the spotlight on LaneAxis.
The report relayed findings of a recent LaneAxis study that found the country’s largest Carriers are outsourcing more than 40% of its contracted freight.
In a piece published Monday on “Live Trading News,” respected financial analyst Paul Ebeling delivered his opinion on the LaneAxis platform:
“This Virtual Freight Management network matters, because it allows the Shipper and Carrier to interact directly, without a middleman, allowing both the Shipper and the Carrier to ultimately eliminate a significant cost component in the freight transportation chain.”