Freight Industry Targets Three Key Goals for Transformation

Breakthrough research reveals the top three priorities for the transportation industry in the next 12 months: emissions reduction, contract optimization, and rate stability. The report emphasizes the need for collaboration between shippers and carriers to achieve these goals. This involves embracing green initiatives, building mutually beneficial contracts, and rationally navigating market volatility. By working together, stakeholders can shape a sustainable, efficient, and mutually beneficial supply chain.
Freight Industry Targets Three Key Goals for Transformation

Imagine the future of freight: silent electric fleets replacing roaring diesel engines, mutually beneficial partnerships supplanting tense contract negotiations, and transparent data stabilizing rates instead of unpredictable market fluctuations. This isn't science fiction—it's the transformation currently underway in the transportation industry. Breakthrough's newly released 2023 State of Transportation Report reveals three core objectives shared by shippers and carriers for the coming year, signaling a new era for supply chains.

The report, based on in-depth interviews with 500 U.S. transportation stakeholders including shippers and carriers, provides valuable insights into the evolving supply chain landscape.

Priority One: The Green Transition—Sustainability Under Emissions Pressure

With growing consumer demand for sustainable products, emissions reduction has become transportation's top priority. The report shows that 94% of respondents consider lowering emissions a critical objective for the coming year. Notably, 99% of shippers would actively adopt electric and alternative-fuel vehicles if carriers offered them, while 97% of carriers see value in adding EVs to their fleets—with 59% planning action by year's end.

"Shifting freight from road to rail presents an immediate energy-efficient alternative," notes Breakthrough Chief Economist Matt Muenster. "When mode-shift opportunities align with network feasibility, emission benefits can be realized immediately. Partnering with suppliers and carriers already implementing emission reductions creates valuable synergies."

However, the path to decarbonization faces significant challenges. Muenster identifies the primary obstacle as securing organizational and stakeholder buy-in. "Early sustainability efforts often require substantial upfront investments with delayed returns," he explains. "Limited visibility across supply chain emissions data makes baseline establishment difficult, while real-time tracking remains essential for measurable progress. Many organizations lack internal expertise for emission-reduction strategies, and finding qualified external partners presents additional hurdles."

Priority Two: Collaborative Advantage—Building Mutually Beneficial Contracts

In today's competitive market, strong partnerships prove essential. The report indicates that 70% of respondents prioritize strengthening reciprocal transportation contracts, signaling an industry shift toward cooperative relationships.

"Transparency around accessorial and fuel costs strengthens shipper-carrier relationships," Muenster emphasizes. "When both parties pursue aligned objectives like efficiency gains or emission reductions, win-win opportunities emerge naturally. Rewarding mutually beneficial contracts through improved pricing, enhanced service, or increased volumes demonstrates commitment to long-term partnerships."

Priority Three: Rate Stability—Rational Strategies for Market Volatility

Amid rising labor and equipment costs, 63% of respondents anticipate above-average linehaul rates in the coming year. However, Breakthrough's long-term projections suggest truckload linehaul rates may bottom out by year-end.

"Shippers should carefully consider capacity procurement strategies," advises Muenster. "Partnering with carriers demonstrating service excellence and competitive pricing establishes critical foundations. Expanding volumes with these strategic partners helps stabilize costs across market cycles. While spot markets currently offer lower-cost options for unplanned shipments, over-reliance risks exposure to rapid cost escalation when market conditions shift."

The Road Ahead: Embracing Transformation

Breakthrough's research outlines a clear vision for transportation's future—greener, more collaborative, and increasingly stable. As shippers and carriers navigate emission pressures, contractual challenges, and rate fluctuations, collective action becomes imperative. Through technological innovation, trusted partnerships, and strategic planning, the industry can build sustainable, efficient supply chains that benefit all stakeholders.

The report also identifies additional focus areas: 50% of respondents prioritize new efficiency-driven partnerships, 33% emphasize reducing internal decision-making silos, 33% highlight emission reduction aligned with scientific targets, and 29% focus on supplier consolidation.