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.