It has been a long slide to the bottom in terms of demand for freight capacity, but it looks like we may have hit the low point of this extended lull.

“From a freight demand perspective, there are indications of an improving trend, but much is still dependent on consumer demand and inflationary pressure,” said Paul Bowman, the senior vice president of Sales for U.S. Xpress, who has been working the freight markets and collaborating on customer needs for 30 years. “We expect it will be post-2023 before we see a meaningful shift in that supply/demand dynamic.”

But there’s a lot to do in the meantime, for both shippers and carriers, and focusing now on those fundamentals will pay off when the market rebounds.

Strong foundations. Regardless of market conditions, some things are always at the top of the to-do list. Improving the driver experience and emphasizing driver safety, retention, and training ultimately lead to a higher level of service and stronger customer relationships. “We are all watching the market, but there are things we are always doing regardless of conditions,” Paul said. “Serving customers and giving our drivers a great experience to keep them safe and driving for our team is always in season.”

Durable connections. For more than 30 consecutive weeks since January 2023, the Federal Motor Carrier Association (FMCSA) has seen net deactivations in carrier registrations, which means more carriers have deactivated than activated in that period. As carriers fall out of the market, more shippers are choosing to stick with carriers that will be there through the highs and the lows. “The longer we stay at the bottom of this freight cycle, the more carrier exits we’ll see,” said Lee Thigpen, vice president of Revenue Management, who has two decades of industry experience.

Watching costs. One important factor in the current state of the freight market is the long-term inflation picture. Yes, inflation has cooled off a bit recently, but the costs of moving freight have increased dramatically compared to few years ago. The average consumer is paying 18% more for goods and services in 2023 versus 2019.​ Industry costs include a 54% increase in trailer prices and a 17% increase in tractor prices during the same period. All of that means shippers and carriers must strike a delicate balance ahead of the busy bid season. “Normally, summer is the slowest season for RFPs, and they pick back up in September,” Lee said. “We’re preparing for bid season by finding creative ways to support our customers efficiently and with a high level of service despite the impact of inflation.”

What’s happening: We’re a year into the slowdown in the freight markets, and it will be the end of the quarter at the earliest before inventories are burned off and some equilibrium returns to the industry.

Why it matters: Shippers are bargain-hunting hard, using mini-bids to seek more competitive rates, while carriers are investing in relationships and service to weather this persistently muted market.

The bottom line: The only thing you can count on in the freight market is change, and both carriers and shippers are working to forecast the year and prepare for a shift despite the lack of a roadmap for a demand lull lasting this long.

We may be talking about freight, but physics rule the day when it comes to market challenges. “Every action has an equal opposite reaction,” said Lee Thigpen, vice president of revenue management for U.S. Xpress, who has spent 19 years tracking trends and wrangling the financial realities of the industry. In other words, in terms of excess capacity and muted demand for moving goods, we’re seeing the flipside of the frantic freight market of 2021, when the pressure on capacity reached historic highs, largely in response to the COVID-19 pandemic.

Several forces launched during that wild ride have whiplashed, including the entry of lots of small trucking outfits during the freight goldrush, and the bloating of inventories as shippers tried to keep pace with consumer demand. Now we’re riding out an equally dramatic opposite reaction.

Paul Bowman, the senior vice president of sales for U.S. Xpress, has been working the freight markets and collaborating on customer needs for 30 years. Seasons and cycles have always driven the market, but relationships have long been the enduring factor, no matter the trends. “A lot of loyalty and strong service are built during tough times for both sides of the market,” Paul said.

Here are four things Lee and Paul see ahead for the second quarter:

A bid season without borders: Bid season has traditionally had an approximate beginning and end, but in today’s market, shippers are eager to keep the negotiations going. Every carrier is on the hunt for freight, and that has shippers shopping for lower rates, and sometimes for shorter-term contracts on the chance that historically low rates may slip even further. Those so-called mini-bids were also happening a year ago, but that was because shippers were desperately seeking capacity. Now their purpose has flipped. Expect mini-bids to come fast and furious, sometimes with horizons as short as six weeks. Bids are also creeping into the dedicated market on contracts that once renewed without them. Across the board, shippers are bargain-hunting.

Relationships still matter, but…: The advantages of incumbency can be big when business goes out to bid, but service levels have to be on point, too – especially in a market like this one. Look for incumbent carriers to get creative and competitive to keep their relationships rolling. When the markets swing wildly, both shippers and carriers tend to feel loyal to the relationships that have seen them through. But competition is always fierce, and while an existing relationship may offer an edge, it won’t be enough to win the day as shippers go shopping for lower rates and better service.  

Capacity falls out of the market: Small to mid-sized carriers rode the shipping boom of 2021 long enough to build up a buffer to get them through the lean times. But this high-capacity market has lasted longer than most typical swings in demand, and many smaller carriers that have entered the industry in the last few years are running out of road as costs stay high and demand remains low. We’re one year into the falloff in freight demand, and that drop happened suddenly, over just a month or so last spring. So, there wasn’t much time to prepare, and the 12 months since then have tested even the most seasoned carriers. As carriers call it quits and capacity falls out of the market, that tightening will become just one factor in the only thing you can count on when it comes to trucking: Things change.

Prepping for the turnaround: The usual 4Q freight surge didn’t materialize, and the spring rush looks like more of a slow-drip market thaw, but physics is still out there doing its thing. As the fallout from two extremely divergent markets settles, the pendulum will swing back. To prepare, shippers are working extra hard on forecasting, trying to evaluate how things will look once excess inventory is burned off at the end of 2Q. They’re working to lock in rates with carriers whose service they know they can count on once demand starts to tick back up. Carriers, meanwhile, are investing in relationships and service now to help keeps things moving when the balance shifts. And while shippers will hold carriers accountable for rates and service, carriers will look for freight volume commitments to be fulfilled.

Why it matters: Professional drivers are the experts when it comes to the real-world experience of getting goods moved, and shippers can learn a lot from them about how to improve operations.

The bottom line: U.S. Xpress customers have real-time access to the data our drivers share about their facilities, and they use it to boost the efficiency and effectiveness of their businesses, and to make strides in becoming shippers of choice.

No one knows better than professional drivers the everyday realities of getting goods moved. That’s why U.S. Xpress shares their feedback to drive improvement for shippers and carriers across our industry.

“Any time a U.S. Xpress driver picks up or drops off, they have the opportunity to do a quick survey rating the experience with one to five stars on a variety of factors, from access and cleanliness to efficiency and friendliness,” said Vice President of Enterprise Sales Brigette Myers. “That data is available in real time to our customers through an online portal, and they use the information to improve their operations.”

The surveys often reveal issues that shippers weren’t aware of, Brigette added. Each month, she reviews the results with her customers and identifies trends — whether that means flagging areas where scores are slipping, or calling out improvements.

“The data provides an amazing amount of detail they wouldn’t otherwise have,” Brigette said. “They want to know because they want to be shippers of choice.”

In one case, a shipper had a consistently low-performing California site where drivers struggled to find places to park or the space to back out and pull in. They were often forced to wait outside the site, and the frustration piled up for both drivers and local employees.

“When they saw the survey results, the company sent their own folks to do a two-week study and they realized the ratings were legitimate,” Brigette said. “They ended up renting an additional yard close by, and started shuttling trailers back and forth. Now it’s one of our highest-performing sites.”

At another customer site in New Jersey, low scores reflected a cultural challenge that just required a little coaching.

“The majority of our drivers are Southern, and there’s a difference in the level of personal interaction they’re looking for,” she said. “When the customer got the feedback, they did some training with their people to make sure they understood why a little more friendliness and warmth was so important for these folks. Now that site is always close to five stars every month.”

Companies are generally eager to learn from drivers how they can create great experiences that keep them moving — and make them want to come back, Brigette said. And the feedback doesn’t just benefit U.S. Xpress drivers. When shippers improve their sites, that’s good for everyone who uses the facility, including employees.

Here are a few of the top takeaways from the feedback our drivers share:

• Being nice is more than a nice-to-have. One of the biggest things is being treated with courtesy. Some drivers haven’t seen another human being in days and having someone speak to them kindly goes a long way.
• Paperwork can make or break an experience. Is the paperwork ready, is it accurate, how long did the driver have to wait to get it? Those factors really matter.
• Creature comforts are a big deal. Is there a restroom drivers can use? If they have to wait, is there a way for them to have food delivered?
• Bring on the light. A well-lit yard that’s clearly marked and easy to navigate isn’t just great for drivers, it’s also great for business operations.

What’s happening: It’s almost time for LINK: The Retail Supply Chain Conference, where thousands of supply chain decision-makers, freight-movers, and logistics pros get together to unpack the massive challenges of moving goods in a fast-changing market.  

Why it matters: Let’s do the math: 75+ shippers, 40 carriers, 40 3PLs, five railroads, 10 port authorities, and 25+ technology companies serving transportation and logistics, warehousing, and equipment OEMs. This is where the industry goes to talk shop.

The bottom line: We’ve got five tips for making the most of this event from a U.S. Xpress leader who’s been working this conference for more than a decade. Dig in to get the most from your time at LINK. We’ll see you there!

Moving retail freight is a massive business, but the drive to get it done every day doesn’t always come with chances to connect, compare, and problem-solve across the industry. That’s where LINK: The Retail Supply Chain Conference comes in. 

“This is the number one opportunity to connect with the largest shipper partners all at one location,” said John Edwards, head of Dedicated Sales for U.S. Xpress. “There are more than 2,000 supply chain leaders in one place, from the top 75 shippers and top 40 carriers to the top 40 3PLs, from 10 port authorities and five railroads – you name it, they’ll be there.”

The broad scope of the event — scheduled this year for Feb. 19-23 in Orlando, Florida — means that it takes a ton of planning to make the most of the time. The top priority is always connecting with customers in person, having direct and productive conversations about what’s working and what needs work when it comes to making their goods move better.

“These are invaluable conversations with massive retailers that rely on us to get their goods to store shelves every day,” John said. “We spend months planning to work this event nonstop, making sure our team is connecting with the businesses we serve and looking for opportunities to adapt to serve their needs as the market shifts.”

In addition to a valuable forum for conversations with customers, the LINK event gives large shippers and leading carriers the chance to connect and learn from each other, as well.

“It’s a big, competitive business, but it’s also a tight network of professionals who share a lot of the same challenges and experiences,” said John, who has been working the LINK conference for a decade. “There’s a lot of value in talking shop with your peers, whether you’re a retailer or a shipper.”

Here are John’s top five tips for making the most of the LINK conference:

1. Plan ahead. Way, way ahead. Register early! Ideally, you register at one conference for the following year so you can start planning for your team to get there and get to work.
2. Get business meetings on the books. Lock in meetings early and often. Start a few months before the event and get as many set up as possible. This is the best event to get in front of as many partners, peers, and prospects as you can in a short period.
3. Meal time is prime time. Business breakfast, lunch, and dinner on all days is a must. Bring your partners to the table to celebrate the prior year, lay a foundation for the upcoming year, talk growth, diversification, and new opportunities to move goods better.
4. Play booth sides. Time in your company’s booth on the conference floor is also important. Chat up your peers and prospects, make new friends, explore opportunities, and interact with everyone who stops by.
5. Class is in session. Work in as many relevant breakout sessions and keynote speakers as possible. There is a wealth of information and engagement to be had within the event with a ton of industry leaders, shipper partners, and peer competitors.

We’re counting down the days until this event, and can’t wait to see everyone at LINK. Got tips of your own for making the most of our time together? Share them here, or get in touch at RILA@usxpress.com.

What’s happening: Rates have slipped, demand for capacity is down, and costs remain high. It may be a tough time to be a carrier, but that also makes it a good time for shippers and receivers to simplify their relationships and maximize service in the new year.

Why it matters: As consumer habits changed over the last two years, many shippers had to shop hard for capacity, expand their networks, and pull in partners from all over the industry to get goods moved. The result was a lot of complexity and, in some cases, inconsistent service.

The bottom line: As the market takes a breather, shippers are in a good position to strike a balance between a favorable rate and good service, and to lock in contract rates to ensure they’re covered when the pendulum swings again.

As 2023 dawns, demand for capacity is down, rates have slipped, and the usual year-end freight-hauling peak didn’t materialize in the fourth quarter of 2022. In many ways, it’s a tough time to be a carrier, but the outlook isn’t entirely bleak — particularly for shippers and receivers looking for the chance to simplify their relationships and maximize service in the new year.

Paul Bowman, Senior Vice President of Sales and Lee Thigpen, Vice President of Revenue Management

The experts at U.S. Xpress have seen just about every trucking market you can imagine, from the buck-wild freight boom of barely a year ago (seems longer, doesn’t it?) to the lulls that reliably come along now and again in a market that has always been driven by cycles and seasons.

Paul Bowman, the senior vice president of sales for U.S. Xpress, has been working the freight markets and collaborating on customer needs for 30 years. Lee Thigpen, vice president of revenue management for U.S. Xpress, has spent 19 years tracking trends and wrangling the financial realities of the industry. They’ve both seen a little bit of everything, and they have four predictions and recommendations for anyone with freight to move in 2023.

1. Expect a slow, wide turn

The first two months of the quarter are typically a slow season, with demand for moving freight staying low in January and February, and gradually ramping up in March as spring fever drives consumer spending. But any run-up in demand this March may be cooler than usual. Instead, the optimists are calling for demand to start increasing near the end of the second quarter of 2023. There are some key indicators that give us reason to expect demand to grow sooner than later, including good job growth reports, and the fact that this dramatic slowdown is really more like a return to normalcy after an exceptionally wild ride. No one is counting on a rapid rebound anytime soon, but the picture isn’t as grim as the headlines might have you believe.

2. Shippers are on clean-up duty

During this slower market, we’re seeing many customers take the opportunity to reset their budgets and reallocate their carrier base. The last two years — which brought a seismic, pandemic-fueled shift in consumer habits — had many shippers scrambling, shopping hard for capacity, expanding their networks, and pulling in partners from all over the industry to get goods moved. At the height of the boom, some of them resorted to overbooking loads, moving significantly more inventory than they strictly needed to because it was a reliable way to get the attention of carriers inundated with opportunities to move freight. Now inventories are bloated, and all that outreach created complexity and inconsistency in both service levels and relationships.

In a world where the pendulum has swung and shippers have more options, they generally like to deal with just a few carriers. The key now is to focus on service, to take advantage of this relatively calm window to establish and expand partnerships with the right providers that can consistently supply capacity, get the right strategic fit for their networks over the long term, and secure a commitment to service levels.

3. More carriers bow out

One reason the freight markets feel loose at the moment is that so many new entrants jumped into the industry and rode the wave during the pandemic freight boom. Many of them are still out there hustling, but it’s getting harder every day — particularly for smaller trucking outfits that are new to the cycles and demands of the industry. Equipment and fuel costs remain high, even as demand falls off, and spot rates have slipped precipitously. Smaller carriers also don’t have sales teams, so they rely on brokers and load boards to keep moving, but those environments are slowing down as shippers regroup and reset. We saw some carriers go under at the end of 2022, and we’ll see more in the first quarter of 2023.

4. The rate stuff

Rates make big news in this environment, and shippers are on the hunt for a good balance between a favorable rate, reliable service levels, and performance consistency. There’s a threshold beyond which a lower rate isn’t going to deliver the results shippers need, but in a market where there’s plenty of capacity to go around, there’s always the temptation to price shop. Rates may not come down much more than they already have, however, given the realities of funding trucking operations. The spot market in particular is putting a real squeeze on carriers that rely on it for profitable one-off runs — those rates have come down to a level where they often don’t support operational costs for carriers. If you’re a carrier with a heavy dose of spot, you’re hurting. Shippers are in a good position to strike a balance between a favorable rate and good service, and to lock in contract rates to ensure they’re covered when the market shifts. And the market will shift. It always shifts. It’s just a question of when.

What’s happening: The year-end surge in shipping and shopping typically begins in autumn with pumpkins and turkeys and lasts right up until the last jingle bell rings on Christmas Eve. Getting it all done takes creativity, collaboration, and plenty of planning.

Why it matters: When the winter holiday hauling season heats up, getting the basics right can make all the difference between a happy holiday and a mood fit for a Grinch. Prompt loading and unloading keep drivers rolling, and clearing out trailers quickly so they’re empty and ready to go makes moving goods easier on everyone.

The bottom line: No matter how you celebrate the season, a little bit of kindness goes a long way for the thousands of professional drivers who make the holidays happen.

While the eternal question of how Santa gets it all done in one night may never be answered, it’s no mystery how professional drivers and the operations teams who support them tackle the massive logistical challenges of the holiday season.

“It takes a lot of creativity, a ton of collaboration, and lots of planning,” said Jeremy Reed, senior director of load planning at U.S. Xpress. “We’ve all got to work in lockstep and put together a strategy to keep everything organized.”

The holiday-driven surge in shipping and shopping typically begins in autumn and heats up steadily until the last minute on Christmas Eve, said Daniel Hall, director of operations for Variant.

“Starting that last week of November and straight through December, you’ll run that four-to-five-week dash right up until Christmas,” Daniel said. “It’s the busiest time of the year, and drivers know they’re the focal point of delivering that freight on time.”

Even this year, when the normally massive holiday surge is somewhat muted, the National Retail Federation is reporting that retail sales during November and December will grow between 6% and 8% over 2021 to between $942.6 billion and $960.4 billion. Holiday retail sales have averaged an increase of 4.9% over the past 10 years, with pandemic spending driving big gains.

And that means a lot of holiday hauling.

“Whether we rush out to go shopping or buy things online, you’re only getting that stuff because people in this industry make it happen,” Daniel said.

In addition to the push to get holiday freight delivered, operations teams are focused on making sure over-the-road drivers are home to enjoy a little downtime with their families.

“Drivers are out right now working hard to get freight delivered and also looking to accrue some days off to spend at home,” said Dalton Dunbar, community leader for Variant. “When it comes up to Christmas and it’s time to get them home, that’s where our focus is – getting them home on time so they can be with their families.”

On the shipper and distributor side of that challenge, getting the basics right can make all the difference between a happy holiday and a mood fit for a Grinch. Some top tips for making the season brighter for professional drivers include:

• Prompt loading and unloading keep drivers moving, and clearing out trailers quickly so they’re empty and ready to roll makes things easier on everyone.
• Good lighting and clear signage at a receiver can make drivers feel safer on dark winter nights, and help them make their deliveries efficiently.
• Allowing drivers to take breaks on site or providing them a designated parking area helps solve the constant challenge of finding a place to shut down.
• Offering basic amenities including bathrooms and vending machines smooths the way any time of the year, but is particularly welcome during this high-intensity hauling season.

Some customers celebrate the season of giving by going the extra mile for the professional drivers who deliver for them every day, said Clayton Kibler, vice president of Dedicated operations for U.S. Xpress.

“We have some grocery customers that will do nice things for our drivers in terms of sharing food or helping us provide extras for our drivers,” he said. “The most important thing anyone can do is treat professional drivers with respect and courtesy.”  

That’s the easiest thing to do, and also one of the most meaningful, Jeremy added.

“A little bit of kindness goes a long way,” he said. “When a driver pulls up and has been on the road all night, seeing a smiling face at the receiving dock is a welcome sight.”

What’s happening: Advances in self-driving technology come with some green upsides for shippers and carriers trying to reduce their environmental footprints.

Why it matters: “Shippers can realize much higher efficiency of their fleets and more rapid movement of their goods,” said Sterling Anderson, co-founder and Chief Product Officer of AV technology firm Aurora.

The bottom line: Hear more from AV expert Sterling Anderson in this video from our PartnerShip event.

Autonomous trucks have the potential to move more goods faster by driving for very long periods at steady speeds, but time isn’t the only things shippers and carriers will be able to save once self-driving trucks hit the roads in greater numbers.   

“Shippers can realize much higher efficiency of their fleets and more rapid movement of their goods,” said Sterling Anderson, co-founder and Chief Product Officer of AV technology firm Aurora. “Lower greenhouse gas emissions, better fuel economy are opportunities with self-driving trucks principally because these trucks can be operated 24 hours a day… and they can drive nearly around the clock.”

Anderson talked about the future of autonomous vehicles during PartnerShip, the premier U.S. Xpress partner summit and showcase for some of our top industry experts. While the wide use of self-driving trucks is still years away, partnerships between AV technology companies and conventional fleets are advancing the use of self-driving trucks.

“In the next 5, 10, 15 years, I expect autonomous trucks to feather into existing networks in a fairly significant way,” Anderson said.

In early 2022, U.S. Xpress launched its partnership with Aurora to study the best ways to find commercial applications for autonomous vehicle technology. As part of the collaboration, Aurora gathers data from our over-the-road fleet to study where and on what types of routes its self-driving system could be deployed most effectively.

The potential of AV is significant, but this futuristic approach to hauling loads still depends on the people who power our business and keep goods moving. As the technology matures, U.S. Xpress will add self-driving trucks to our diversified mix of supply chain offerings. Those trucks will create more capacity, which will give our customers more options, and also give drivers more flexibility and predictability in their work lives. 

With a truck driver shortage of about 80,000 and industry turnover generally above 90%, this technology could help keep goods moving more efficiently over the very long haul in particular.

“That’s challenging, to keep a supply chain running, optimized and performing efficiently when you don’t have [enough] drivers,” Anderson said. “Self-driving systems fill that gap. They fill it with a truck that isn’t limited by hours-of-service restrictions.”

The idea of self-driving trucks might make people uneasy, but the technology is built on multiple layers of safety-first features, Anderson added.

“We started the company with a focus of delivering the benefits of self-driving technology safely, quickly, and broadly,” he said. “Those adjectives and their sequence really matter to us.”

What’s happening: The clock is always ticking when you’re moving freight, and professional drivers must get strategic to maximize their hours.

Why it matters: Shippers can also play a big role in keeping goods moving and drivers available. Delays in loading and unloading can burn up hours and lower driver availability.

The bottom line: Planning ahead and making the most of the clock are among the most important skills professional drivers learn, and sharing that knowledge is one of the ways U.S. Xpress and Variant mentors help their colleagues keep goods moving.

The clock is always ticking when you’re moving freight, and professional drivers must get strategic to maximize their 11 hours at the wheel and 14 total hours they’re allowed to work each day.

“As soon as I wake up in the morning, and a lot of times before I even go to bed, I have an idea once I get rolling where my breaks are going to be, where I’m going to get fuel,” said Tonya Mosier, a professional driver, road team captain, and mentor for Variant. “I usually know about where I’m going to stop at the end of the day. I’m a big planner.”

Federal law governs the maximum amount of time drivers are permitted to be on duty, including driving time, and specifies the number and length of rest periods to help drivers stay safe. There will always be some surprises on the road, but there are also plenty of factors that drivers can predict to prevent lost time, including traffic in major cities, said Scott Hatchett, a professional driver for Variant with more than one million safe miles to his credit.

“If you’re going to try to make it through rush hour traffic in Atlanta, you will not,” he said.

Planning ahead and making the most of the clock are among the most important skills professional drivers learn, and sharing that knowledge is one of the ways U.S. Xpress and Variant mentors help their colleagues keep goods moving.

One of his best pieces of advice is to get rolling when your break is over, no matter what time of day that might be, Hatchett said.

“When that 10-hour break is up, I’m driving,” he said. “Doesn’t matter if it’s daytime or nighttime.”

Dani Calderaro, a professional driver and ambassador for Variant, said one of her best tips is to be 100% ready to roll when you’ve marked yourself available. Pre-trip inspections should be done, and wheels should be ready to turn, she said.

“If you say that you’re going to be up at 7 a.m. three days after you get there, you need to be in that seat at 7 a.m.,” Calderaro said.

Shippers can also play a big role in keeping goods moving and drivers available. Delays in loading and unloading can burn up the hours and reduce driver utility.

Whether it’s providing parking and other basic amenities or developing clear and consistent plans for loading and unloading, shippers can make or break a driver’s day. Here are a few quick tips for helping them make the most of their time at the wheel:

• Lose the Wait: Having access to a trailer means nothing if it sits around waiting to be unloaded. Unload trailers quickly and cut down on detention time for drivers.
• Provide Accurate Info: Provide accurate pickup numbers, delivery numbers, preload trailer numbers, or any other reference numbers, to keep everyone moving. Make sure addresses and pickup and delivery times are accurate.
• Allow Flexible Hours: Finding a way to make preloaded equipment available for pickup after hours can make a huge difference in utilization and efficiency.

All these steps make it easier for drivers to plan their time on the clock, and planning is the name of the game when it comes to capacity.

“The key to success in this profession is planning,” Hatchett said. “I’ll be thinking about what I want to do two days down the line. I like being ahead of the game.”

What’s happening: The multiple complex systems known collectively as ‘the supply chain’ never stop evolving. What was true a decade ago — or even five years ago — often doesn’t apply anymore.

Why it matters: For shippers, the constantly shifting nature of the world of freight requires versatility in their partnerships. For carriers, it means a commitment to endless study of how logistics and freight function.

The bottom line: Shippers and carriers are in this together when it comes to lifelong learning about what works in the world of freight, and how we can make it work better.

An expert perspective: Hear more from Dr. Chris Caplice in this video.

Dr. Chris Caplice probably knows as much as anyone on the planet about the many-faceted universe we call the supply chain. After all, he’s the chief scientist at DAT Freight and Analytics and executive director of the Massachusetts Institute of Technology Center for Transportation and Logistics.

But no matter how much we know, the job is never done when it comes to learning how to move goods better, Dr. Caplice said during PartnerShip, the premier U.S. Xpress partner summit and showcase for some of our top industry experts. 

“People have finally recognized that’s it a lifelong education, and you need to do it throughout your career because things are moving too fast,” he said.

What was true a decade ago — or even five years ago — often doesn’t apply anymore. That’s why education has evolved to offer ‘micro-master’s’ degrees to sharpen skills in specific areas, Dr. Caplice said. 

“I might need to learn about drop-and-hook or customs clearance,” he said. “I need bite-sized education throughout my career.”

For shippers, the constantly evolving nature of freight requires versatility in their partnerships, Dr. Caplice said.  

“As a shipper, you should have a portfolio of options,” he said. “You have dedicated — something that is steady state, high volume — you don’t need to involve anyone else in it, and you can keep that driver and that truck utilized.”

Meanwhile, less predictable shipping needs require a different approach.

“If it’s high volume and not as balanced, maybe you go to contract, to over-the-road trucking,” he said. “But if you have lanes that happen very infrequently, it doesn’t make sense to have a contract for those. That’s where I’m arguing that they should go pure dynamic.”

A recent partnership between MIT and U.S. Xpress is a good example of efforts to find tactical ways to help boost the effectiveness of freight planning. Graduate students worked with U.S. Xpress to study dwell — the time drivers spend waiting instead of driving — and discovered some consistent themes.

“The shortest dwell happens during the busiest times,” Dr. Caplice said. “We expected that during the peak hours you’d see the longer dwell, but what you see is during peak hours the receivers are faster, their labor is up to the right level, they can process faster. The big dwell happens during off hours.”

The students also discovered dwell is less likely to happen the more frequently a driver visits a site, and that can become good guidance for dispatchers in assigning loads, Dr. Caplice said.

During the pandemic, awareness of the supply chain has helped broaden understanding of its complexity, he added.  

“The words ‘supply chain’ became part of the vernacular. I no longer have to explain to people what I do,” Dr. Caplice said.

“People think ‘the supply chain’ broke, and there is not ‘a supply chain.’ I think people have realized that it’s very complicated. They’ve gained an appreciation for what normally happens and they don’t even know it happens.”

From rewarding work anniversaries and safe miles to serving free weekly lunches at our service centers, celebrating the great work of professional drivers is an everyday focus of team members across U.S. Xpress. That gratitude shifts into high gear during Driver Appreciation Week, when our vendors and partners get in on the act, donating everything from gift cards and iPads to offering up their grilling skills to serve something delicious for drivers.

“We always pull out all the stops for Driver Appreciation Week, but the generous support of our vendors puts it over the top,” said Lynn Quintero, vice president of driver services for U.S. Xpress. “They show up in so many ways – through donations of every kind, but also by literally showing up and working to show professional drivers how much we appreciate all they do every day.”

U.S. Xpress vendors including Webb Wheel Products, Premier Truck Group, Delta Dental, ATDMS, DClimate, and Allstate gave drivers gift cards to Target, Lowe’s, Home Depot, and Amazon, as well as useful everyday items for drivers such as cordless hand vacuums, flashlights, and tire pressure gauges.

At the Shippensburg, Pennsylvania, service center, local Kenworth reps brought out the Kenworth grill and cooked up an amazing lunch for drivers. In Tunnel Hill, Georgia, Five Star Foods donated and served up a cookout feast. And at service centers and dedicated sites across the country, our partners rolled up hauling goodies to give away, including a wagonload of big-screen TVs and cooler full of tools.

“It takes a lot of people working together to keep a trucking company moving,” Quintero said. “Our partners are a big part of our success in creating great driver experiences, and they share our passion for showing drivers how much they matter.”

Throughout Driver Appreciation Week from Sept. 11-17, U.S. Xpress gave gifts to every professional driver in our fleet, hosted celebrations at our service centers and dedicated facilities across the country, and gave away prizes that ran the gamut from iPads and gift cards to cash. Every company driver received a premium duffel bag and toiletry bag, and five drivers won a $1,500 cash prize.

Celebrating drivers is also part of the U.S. Xpress culture all year long, including our popular Wednesday lunches, when office employees serve drivers at our terminals, our annual Million Miler celebrations for our safest drivers, and even recognition for drivers of the month across our businesses and brands. Driver birthdays and service anniversaries are cause for celebration, too, and every driver is awarded points they can use to buy gifts or gift cards for those milestones. 

“Drivers are the backbone of our industry,” Quintero said. “Showing them that we see and value their hard work is one of the best investments we can make in serving our customers.”