Staff Reporter
Rebalanced Supply Chain Still Leaves Empty-Mile Problem

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The underlying issues causing empty miles and unfilled trucks persist even as a balancing supply chain has softened them, experts warned.
鈥淚 think we鈥檝e seen improvements,鈥 Ben Cubitt, senior vice president of consulting at , said. 鈥淏ut the improvements probably fall into two camps, planned and intentional and they just happen because they happen. If you think about it, networks were really disrupted and it鈥檚 taken a long time for the transportation networks to get relatively balanced.鈥
Cubitt pointed to the supply chain gradually getting back to normal after the coronavirus pandemic as one of the unintentional ways empty miles have been reduced. He also noted it can be an indirect consequence of transportation providers pursuing efficiencies more generally.
鈥淐oncerts weren鈥檛 happening, sporting events weren鈥檛 happening,鈥 Cubitt said. 鈥淎ll of that has turned back on so all those lanes are shipping again. And so, people have filled trucks to some varying degree of success with that freight.鈥

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that only 55% of shippers filled their trucks to capacity last year. The combined unutilized space amounted to one in five truckload shipment moving completely empty. The study pointed to the unfilled space and fees as threatening shipper profitability despite a favorable deflationary market.
鈥淓ven in a shipper-friendly freight market, too many businesses are still defaulting to inefficient shipping methods,鈥 Kevin McMaster, vice president of sales and operations at听, said. 鈥淩egardless of the economic environment, shipping empty trucks is just extremely hard to justify as it pertains to not just simple associated costs, but also with our responsibility to the environment.鈥
McMaster noted there are opportunities for shippers to avoid the usual costs of inefficient shipment runs even as they face growing pressures to deliver goods on time and on budget. He pointed to shared truckload and freight pooling approaches as an example. Flock Freight designed its services around that approach.
鈥淭ruckload shippers filled their trucks slightly more often in 2022 compared to 2021,鈥 McMaster said. 鈥淏ut that was more likely caused by a handful of external factors in the market considering that barely half of them are filling their trailers to full capacity.鈥

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Cubitt noted it鈥檚 tough for individual carriers or shippers to make an impact. But he pointed out transportation networks can become more efficient by better leveraging technology and being more collaborative with data.
鈥淥nce the networks are back in balance as much as they can be because the gross inefficiencies have been worked out, how do you impact that,鈥 Cubitt said. 鈥淚 think companies like Uber, because of our scale and technology, because we see a lot of networks, we have a lot of opportunity to impact that and we鈥檙e trying to.鈥
Uber Freight has worked with its shipper customers to find opportunities to collaborate, such as ensuring a truck bringing an inbound load is likely to get an outbound load. He pointed to drop trailers as being particularly efficient for this approach.
鈥淚 think for carriers, for shippers, for technology providers like us, and it鈥檚 certainly something that we鈥檙e focused on 鈥 how do we get better data and visibility into where empty miles are happening,鈥 Cubitt said. 鈥淐arriers could provide more information. Technology providers like us should provide more visibility and we鈥檙e working to do that. But I think that鈥檚 a gap that as an industry we should acknowledge and be a little more vocal about.鈥
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Cubitt warned there is a possibility empty miles could increase in the current environment. There have been indications freight demand is softening so carriers may become more willing to drive further to get a load.
鈥淓mpty miles and unfilled trucks tend to reflect the macro environment,鈥 Tanmay Mathur, senior vice president of linehaul at , said. 鈥淔or the industry as a whole, this softer demand environment has increased the likelihood of empty miles and unfilled trucks in some lanes. At XPO, we鈥檙e laser-focused on increasing efficiency in our operations, including how we can load our trucks and route freight as efficiently as possible.鈥
Mathur actually saw fewer empty miles and unfilled trucks during the pandemic because demand was so strong.
鈥淲e鈥檙e using route optimization software to minimize the number of terminals a shipment is routed through to reduce miles driven,鈥 Mathur said. 鈥淥ur pickup and delivery operations leverage machine learning to dictate P&D route sequencing 鈥 which maps out a week in advance how to make the freight flow as efficiently as possible. We then use daily models to assess what kind of freight we鈥檙e going to pick up, where it鈥檚 going and how the trailers should be loaded.鈥
XPO ranks No. 3 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.
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