A Study of Shipper Performance in the Less-Than-Truckload Market

Abstract

When it comes to LTL shipping, it can be tough for shippers to get the performance that they expect due to the makeup of LTL networks. On-time performance is dependent on many more factors than in full truckload shipping. Performance often comes down to attributes of the shipment such as size and weight and also attributes of the geographical shipment volume. It is critical for shippers to understand these attributes and how they contribute to on-time performance of their own shipments. Through quantitative and qualitative analysis, this capstone details the shipment, shipper, and geographical characteristics that impact on-time performance of LTL shipments. Data from 33 shippers over a period of nearly two years was provided by C.H. Robinson and TMC (a division of CHR). This data was evaluated through a mix of regression and segmentation methods, as well as through qualitative understanding of the industry and economic landscape. The modeling and analysis here within describe the attributes of high performing shipments and provides guidance for shippers as to how to strive for the best performance. We found that shipment size, transit length, and destination shipment volume are among the largest drivers of on-time performance. Although on-time pick up and on-time delivery share some common significant drivers, significant drivers are not all the same for both. This report dives into further detail to help shippers understand the drivers what they can do to manage expectations and performance of their LTL shipments.