What doshippers and carriers

think?

Results of theglobal monthly trend survey

for January 2012

© Zsolt Kosinszky

Summary for Jan 2012 (vs Dec 2011)

© Zsolt Kosinszky

Shippers expect Carriers

0% to +5% volumes 2+% increase

40% expect more transport capacity 46% expect no change

up to 5% increase transport rates up to 5% increase

4.14% rise diesel prices 2.98% rise

up to 5% increase cost for carriers up to 5% increase

Survey methodology and base data

• anonymous survey

• between December 15-31, 2011

• 816 respondents with activities on all

continents

• participants: buyers (shippers) and

sellers (carriers) of transport services

and other supply chain players

(e.g. infrastructure providers,

consultants, media, education)

• about 66% of respondents are high

level decision makers

• base data: December 2011

© Zsolt Kosinszky

25%

36%39%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

shipper carrier other

Participants

68%

53%

38%

21%15%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Europe The Americas

Asia Africa Australia and

Oceania

Area of activity

80%

48%

72%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

shipper carrier other

Decision makers

Geographical coverage

Europe, North America and Asia are over-reprensented in the survey. As a result, specific reports are available on these regions.

© Zsolt Kosinszky

51%

31%

4%

1% 10%

2% 1%

Location of respondents

Europe

North America

South America

Middle East

Asia

Africa

Australia and Oceania

Featured survey: desired area of improvement

© Zsolt Kosinszky

Shippers

No. 1: visibility and availability of information

No.2: processes (because they are not in place or not working well)

No.3: actions (because they are more ad-hoc then based on strategy)

Carriers

No. 1: processes (because they are not in place or not working well)

No.2: operations (because they are sub-optimal and/or costly)

No.3: visibility and availability of information

© Zsolt Kosinszky

Challenge Problem

Operationalefficiency

Processes not in place or not working, long lead times, suboptimal and costly operations, low visibility (information), decreasing service level, high inventory

Find the right carriers (spot and long term)

Rates not competitive, insufficient quality of service, long tendering process, complicated spot sourcing

Find new customers

Huge competition, extremely resource intensive structures

Getting greener while saving

Most solutions are costly/take long time to put in place and/or take effect

Current supply chain challenges

Shippers50%

35%

25%20%

0%

10%

20%

30%

40%

50%

60%

© Zsolt Kosinszky

Challenge Problem

Find new customers Huge competition, extremely resource intensive structures

Operational efficiency Highly manual processes, insufficient visibility, short term actions

Find the right subcontractors (spot and long term)

Highly resource intensive processes, outdated applications (freight exchange/loadboard)

Capacity management Insufficient network optimization, insufficient visibility, short term view, collaboration issues

Financing/payment Complex rating systems, numerous extra cost types, credit issues, insufficient collaboration

Current supply chain challenges

Carriers50%

39%

29% 29% 29%

0%

10%

20%

30%

40%

50%

60%

Expected diesel price in Jan 2012

© Zsolt Kosinszky

While shippers (4.14%) believe that the market (2.77%) expects a somewhat lower price than them (3.4%), carriers (2.98%) think that the market (2.77%) expects a significantly lower price than them (6.46%).

The base price is the November 2011 average diesel fuel price per litre in Germany: 1.467EUR. (source: http://www.theaa.com/onlinenews/allaboutcars/fuel/2011/november2011.pdf)

4.14%

2.98%

1.46%

2.77%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

shippers carriers others all

What they expect

3.40%

6.46%

1%

3.78%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

shippers carriers others all

What they think the market expects

Transport rate changes in Jan 2012

• 26% expect no change

• 32% expect an increase

of up to 2%

• both shippers and carriers

believe the market expects

a rate increase of up

to 5%

© Zsolt Kosinszky

5%

16%

21%

32%

26%

0% 0% 0% 0%0%

5%

10%

15%

20%

25%

30%

35%

What shippers expect

65%

30%

50%

78%

15%

67%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

rate increase no change rate increase of up to 5%

What shippers and carriers think the

market expects

Changes in carriers’ costs in Jan 2012

• 86% expect higher costs

• 14% expect no change

• 68% expect an increase

of up to 5%

• both shippers and carriers

foresee a cost increase of

up to 5%

© Zsolt Kosinszky

7%

11%

32%

36%

14%

0% 0% 0% 0%0%

5%

10%

15%

20%

25%

30%

35%

40%

What carriers expect

81%

19%

75%

96%

4%

79%

0%

20%

40%

60%

80%

100%

120%

cost increase no change cost increase of up to 5%

What shippers and carriers think the market expects

Transport capacity in Jan 2012

• while shippers expect

more capacity (40%) than

in December 2011,

54% of carriers

believe it will not change

• carriers believe

the market expects more

capacity (46%), while

shippers are rather

undecided

© Zsolt Kosinszky

40%

35%

25%29%

54%

18%

0%

10%

20%

30%

40%

50%

60%

more unchanged less

What shippersand

carriers expect

35% 35%

30%

46%

32% 31%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

more unchanged less

What shippers and carriersthink the market expects

Volumes in Jan 2012

• both shippers and

carriers are rather

positive about

business expectations

• carriers’ expectations

are rosier than those of

shippers

© Zsolt Kosinszky

50%

35%

30%

52%

22%18%

0%

10%

20%

30%

40%

50%

60%

volume increase no change volume increase of up to 5%

What shippers andcarriers expect

35%

30%

25%

52%

11%

26%

0%

10%

20%

30%

40%

50%

60%

volume increase no change volume increase of up to 5%

What shippers and carriers think the

market expects

Thank you, sharing, next survey, contact

Firstly, if you are one of the 816 respondents who took this survey, thank you for your time!

In case you found this survey useful and/or interesting, please feel free to share it with anyone.

The February 2012 survey questions will be accessible from January 15, 2012.

If you would like to get in touch with me, please write to kosinszky.zsolt@gmail.com or contact me via LinkedIn http://be.linkedin.com/in/zsoltkosinszkyor feel free to join the Collective Transport Sourcing group on LinkedIn:http://www.linkedin.com/groups?about=&gid=4128642

© Zsolt Kosinszky