2014 shipper`s choice 2014

2014
SHIPPER’S
CHOICE
2014
SHIPPER’S
CHOICE
An impressive field of 37 carriers rose to the
top in our annual Shipper’s Choice Awards
survey. Read on to discover how their
performance set them apart.
2014
SHIPPER’S
CHOICE
A CUT ABOVE THE REST
Our 13th Annual Shipper’s Choice Awards Survey sets industry benchmarks
for performance excellence and identifies the 37 carriers who exceed them
A
s the global recovery takes firm hold
and freight volumes grow, commercial transportation in North America
is likely to experience capacity shortages.
This will ultimately shift the focus of transportation service buyers from price to service. The hyper competitive nature of many
sectors such as retail, however, will mean that
there will continue to be an emphasis on
cost containment.
For carriers the challenge will be in taking the leap of faith to invest in the equipment, technology and service strategies necessary to deal with growing freight volumes
– a costly endeavour – at a time when rates
are not rising as quickly as they would like.
It makes for a difficult balancing act but
our research shows clearly that no matter
what the challenge, some carriers are able to
rise to it. They’ve learned how to best balance atop that quality service at a competitive price tightrope, during both tough economic times and growth periods.
This report reflects the research we conduct annually in an attempt to provide buyers of transportation services with consistent, national and scientifically derived
benchmarks of excellence for carrier performance in each mode.
This year 37 carriers managed to surpass
the Benchmark of Excellence in our 13th
Annual Shipper’s Choice Awards Survey. Particularly impressive are the carriers who have
Geographic distribution
of respondents
19%
46%
35%
Western
Canada
Central
Canada
Eastern
Canada
scored above the benchmark of excellence for
five years in a row to be awarded our special
“Carrier of Choice” designation. To see these
winners, turn to the final page of this report.
Our survey provides shippers, 3PL service
providers and freight forwarders across Canada with the opportunity to set benchmarks
for carrier performance on eight key performance indicators (KPIs) and to rate their top
carriers against those benchmarks.Aside from
identifying the best carriers across all modes
through this process, survey respondents also
provide clear indications of the different values Canadian buyers of transportation services place on each key performance indicator (KPI) based on mode as well as a
comparison of how high these standards are
set for each mode. (For example, transportation buyers set their highest standard on information technology for air carriers while
expecting marine carriers to live up to the
highest standard for competitive pricing.)
The importance survey participants
place on the KPIs for each mode (based on
a five-point scale) is used as a weight in calculating carrier evaluations. Survey participants then rate up to three of their main carriers in each mode (again on a five-point
scale.) The final weighted score for each carrier is derived by multiplying the carrier’s
average performance score by the average
importance rating for each key performance
indicator for that mode.
continued
Importance Of Performance Criteria
On-time
performance
Quality of
equipment &
operations
Information
technology
Competitive
pricing
Customer
service
Leadership
in problem
solving
Ability
to provide
value-added
services
Sustainable
Transportation
Practices
LTL Trucking
4.753
4.315
4.034
4.678
4.647
4.369
3.603
4.060
TL Trucking
4.848
4.506
4.168
4.715
4.633
4.409
3.910
4.210
Ocean Carriers
4.588
4.426
4.365
4.731
4.634
4.441
4.117
4.188
Couriers
4.862
4.321
4.516
4.708
4.619
4.342
3.852
4.128
Mode
Air Carriers
4.924
4.531
4.547
4.647
4.721
4.551
4.069
4.195
Rail Carriers
4.545
4.385
4.295
4.722
4.572
4.288
3.813
4.178
22 July/August 2014 www.canadianshipper.com
2014
SHIPPER’S
CHOICE
Because survey participants are first
asked to rate the importance they place on
each of the eight KPIs when making their
carrier selections, and that data is used as a
weight on their carrier evaluations, we feel
that the benchmarks set are truly standards
of excellence. In other words, carrier performance is judged against an ideal of what
shippers expect and the areas given the most
weight are the ones that matter most to buyers of transportation services. As a result, of
the hundreds of carriers rated in our survey,
only a very few are deemed by participants’
evaluations as providing a service so superior that it warrants a Shipper’s Choice Award.
Carriers receive the Shipper’s Choice
Award when their total score meets or surpasses the total benchmark of excellence for
their mode. Only those carriers who exceed
this benchmark have their names and scores
included in the following tables.
Average shipper satisfaction ratings for
each KPI are shown by mode.The final column on the right shows the total benchmark of excellence set for each mode. The
benchmarks for each of the eight KPIs per
mode are indicated with each modal table
on the following pages.
Invitations were sent to more than 6,000
of our readers who are buyers of transportation services in the manufacturing, retail and
other sectors as well as to individuals responsible for managing shipments within the
freight forwarding and 3PL sectors.
Carriers must receive a minimum number of evaluations in order to qualify for the
award. It should be noted that this year winning was made all the more difficult because
we once again raised the number of evaluations necessary to qualify for the award for
almost every mode. In order to boost response, carriers were given the opportunity
to forward the survey to their own customer
lists. Not all carriers chose to do so, however.
To prevent tampering, we check for multiple
cases submitted by known respondents. If
there is more than one case, then only the
newest one is considered. Likewise, we check
for similar IP addresses. As a final check on
tampering, we separate and check the evaluacontinued
Shipper Satisfaction Ratings By Mode
On-time
performance
Quality of
equipment &
operations
Information
technology
Competitive
pricing
Customer
service
Leadership
in problem
solving
Ability
to provide
value-added
services
Sustainable
Transportation
Practices
Total
Satisfaction
Score
LTL Trucking
20.27
18.15
15.96
19.55
19.53
17.46
14.17
16.28
141.369
TL Trucking
21.43
19.53
16.59
20.02
20.22
18.35
15.61
17.37
149.123
Ocean Carriers
19.51
18.40
17.56
19.43
19.22
17.43
15.71
16.57
143.833
Couriers
20.79
18.17
18.71
18.73
18.06
16.25
14.27
16.15
141.136
Air Carriers
20.87
19.17
18.35
18.82
19.19
17.76
15.30
16.42
145.878
Rail Carriers
16.59
16.64
16.17
18.05
15.80
14.36
12.23
15.32
125.172
Mode
24 July/August 2014 www.canadianshipper.com
2014
SHIPPER’S
CHOICE
tions submitted by participants from our own
e-mail list versus the e-mail lists of carrier
customers. Winners must have evaluations
submitted by transportation buyers from our
own e-mail list to qualify for the award.
More than 2,000 buyers of transportation
services participated in our survey, which
makes Shipper’s Choice the largest of the several surveys we conduct annually.We thank all
those of you who took the time to complete
our survey. (Participants receive an advance
electronic copy of the results.) About 10,000
evaluations of carriers from all modes providing services in the Canadian market were cast.
As with past years, survey participants
represent every region across Canada and
buy transportation services for companies
with annual sales ranging from less than $5
million up to more than $2 billion. Their
annual supply chain budgets range from less
than $100,000 up to more than $25 million.
More than a third spend over 70% of their
Sectoral distribution of
respondents
Annual supply chain
budget
Third-party
logistics
Retail
12%
14%
Less than
$100,000
More than
$20M
Freight
forwarding
13%
$10M - $20M
7%
15%
5%
$5M - $10M
22%
Manufacturing
supply chain budgets on transportation.
The Shipper’s Choice Awards Survey was
undertaken once again in partnership with
CITT and the Freight Management Association of Canada (FMA), two associations
whose members responsible for the purchase
of transportation number in the thousands.
And, as in previous years, the research was
conducted by an independent research firm
(the same research firm that conducts our
industry-leading Annual Survey of the Canadian Supply Chain Professional).
Winning carriers are listed alphabetically,
and not by their total score. Those wanting
to compare the scores among the winners
should keep in mind the high probability
that these carriers, although they are being
compared to an industry benchmark, have
been evaluated by different shippers. This
survey is intended as a measure of which
carriers exceed industry expectations and
not a ranking of the carriers involved.
10%
27%
Other
sectors
45%
$100,000 $500,000
18%
$1M - $5M
12%
$500,000 - $1M
Annual expenditure on transportation
5%
14%
10%
29%
10%
18%
7%
8%
Less than
$10,000
$10,000 $49,999
$50,000 $99,999
$100,000 $449,999
$500,000 $999,999
$1M $4.999M
$5M $9.999M
More
than $10M
26 July/August 2014 www.canadianshipper.com
No less than
excellence expected
2014
SHIPPER’S
CHOICE
O
n-time performance remains the
top KPI but buyers of truck transportation also have high expectations for competitive pricing and customer
service. In fact, the customer service expectations for LTL are the second highest
among all the modes in the survey.
LTL carriers were particularly hard hit
during the Great Recession when they
were caught with excess capacity. The
LTL terminal footprint is harder to right
size quickly during economic downturns
and upturns and LTL carriers, which have
been holding back on adding capacity
during a lukewarm recovery are faced
with the unsavory challenge of running
an older fleet, which translates into lowered productivity. Rate increases have also
been slower to materialize than LTL carriers would have hoped which makes investment in new equipment more diffi-
cult. Smaller carriers in particular are
having a tough time updating their aging
fleets. In the US trucking bankruptcies
had increased for seven consecutive quarters by the end of 2013. While bankruptcies have not proven a major concern this
side of the border the LTL space remains
ripe for consolidation.
More than 2,200 shippers cast more
than 3,500 carrier evaluations for the LTL
category. Eighteen carriers surpassed our
Benchmark of Excellence this year.
LTL winners and their scores for each
of our eight KPIs are shown in the table
below. The bottom row of the table shows
this mode’s Benchmark of Excellence for
each KPI. The total Benchmark of Excellence is indicated on the top right. The
winners are shown in alphabetical order
and only those scoring above the total
Benchmark of Excellence are included.
LTL Motor Carrier Award Winners
Total no. of shippers evaluating carriers in this mode: 2,247 Total carrier evaluations: 3,592 Benchmark of Excellence: 141.369
Carriers
On-time
performance
Quality of
equipment &
operations
Information
technology
Competitive
pricing
Customer
service
Leadership
in problem
solving
Ability to
provide
value-added
services
Sustainable
Transportation
Practices
All Connect Logistical Services
22.77
20.28
18.58
21.93
22.43
20.22
16.98
18.38
Apps Transport
21.02
18.90
16.43
21.12
21.22
18.87
15.45
16.98
Armour Transportation Systems
20.09
18.36
16.05
19.46
20.07
17.83
14.88
16.85
Cavalier
22.08
19.93
17.25
21.21
21.77
20.13
16.58
17.99
CCT Logistics
20.37
18.49
15.91
19.11
20.98
17.23
13.51
16.89
Guilbault Transport
21.36
18.87
16.87
20.28
20.72
18.85
14.27
16.80
GX Transport
21.83
19.65
18.17
20.86
22.12
20.40
16.33
18.12
Hercules
22.12
19.06
17.46
21.45
21.88
19.73
15.78
17.98
Maritime Ontario
19.85
18.27
16.07
20.98
19.53
18.41
14.06
17.45
Minimax Express Transportation Inc.
21.04
18.52
16.62
20.70
19.20
17.93
14.66
17.07
Normandin Transit
20.77
19.78
16.77
18.62
20.57
19.06
15.21
17.38
Old Dominion
20.63
17.65
17.77
20.94
20.54
16.98
12.97
16.83
Polaris Transportation
20.70
19.02
17.77
21.28
20.14
18.15
14.56
17.54
Robert Transport
20.79
19.21
17.56
18.83
20.43
17.97
15.62
17.67
Rosenau Transport
21.07
19.24
15.70
17.58
21.23
18.67
16.08
15.75
Seaway Express
23.19
20.27
17.11
21.26
22.53
19.03
14.97
19.22
Trans-pro
22.63
20.47
17.91
21.33
22.68
20.40
15.83
18.68
Wheels MSM
22.14
19.42
17.17
20.45
21.86
19.72
16.21
17.84
Benchmark of Excellence
20.27
18.15
15.96
19.55
19.53
17.46
14.17
16.28
28 July/August 2014 www.canadianshipper.com
Road hammers
2014
Y
SHIPPER’S
CHOICE
ou’ve got to be at the top of your
game to make it into the exclusive
club of TL carriers bestowed with a
Shipper’s Choice Award. Every year of our
survey this is the most hard-fought category with the benchmark set the highest. It’s
no different in 2014 with carriers needing a
Total Satisfaction Score of 149.123 to qualify – considerably higher than other modes.
On-time performance is the top KPI
for buyers of TL services and it’s third
highest of all modes, surpassed only by
that set for couriers and airfreight carriers.
Competitive pricing is the second most
important KPI in terms of importance according to our shipper survey, followed
closely by customer service. It’s interesting
to note that sustainable transportation
practices continues to gain in importance,
scoring 4.2 out of 5 this year in the minds
of TL service purchasers. In addition TL is
held to the highest standard when it
comes to providing sustainable transportation practices.
Like their LTL countersparts, Canadian
TL carriers are challenged by the need to
replace their aging fleet. Yet lacklustre rate
increases are making it difficult to do so,
particularly among the industry’s smaller
carriers. Aging equipment along with a
continuing driver shortage are having an
impact on productivity and consolidation
has been forecasted for several years now
but has yet to materialize to the large extent expected.
More than 1,500 shippers cast more
than 2,000 carrier evaluations for the TL
category. Sixteen carriers surpassed our
Benchmark of Excellence this year.
TL winners and their scores for each of
our eight KPIs are shown in the table below.The bottom row of the table shows this
mode’s Benchmark of Excellence for each
KPI. The total Benchmark of Excellence is
indicated on the top right. The winners are
shown in alphabetical order and only those
scoring above the total Benchmark of Excellence are included.
TL Motor Carrier Award Winners
Total no. of shippers evaluating carriers in this mode: 1,545 Total carrier evaluations: 2,094 Benchmark of Excellence: 149.123
Carriers
On-time
performance
Quality of
equipment &
operations
Information
technology
All Connect Logistical Services
Armour Transport/ Polestar
23.00
21.37
19.69
21.85
19.80
17.19
Big Freight Systems
Bison Transport
20.78
19.79
18.58
20.74
19.54
17.89
Cavalier Transport
23.25
21.38
Guilbault
22.35
20.16
Hercules
23.17
20.28
Competitive
pricing
Customer
service
Leadership
in problem
solving
Ability to
provide
value-added
services
Sustainable
Transportation
Practices
22.75
22.53
20.60
20.93
20.79
17.38
19.34
19.49
17.09
17.93
19.87
19.51
20.35
18.58
15.64
17.16
19.94
18.32
15.26
18.11
18.81
17.89
22.49
22.69
20.38
18.14
19.88
20.43
21.13
20.22
16.06
19.09
18.28
21.99
22.07
20.63
17.76
18.91
Kriska Transportation
21.74
20.14
16.93
20.29
20.85
17.12
15.87
17.75
MacKinnon Transport Inc.
22.13
21.14
18.70
20.79
21.50
20.50
17.91
19.54
Maritime Ontario
21.46
19.73
17.37
20.90
20.82
19.23
17.19
18.36
Midland Transport
21.31
20.20
17.70
18.96
20.10
18.17
16.10
17.64
Penner International
23.15
21.58
19.20
21.78
22.51
20.70
17.30
19.18
Robert Transport
21.21
20.07
17.73
18.57
19.90
18.14
16.72
17.81
Transpro Freight Systems
23.17
21.53
18.81
21.88
22.52
20.84
17.47
18.89
XTL Transport
21.30
19.93
17.81
18.29
20.64
18.31
16.13
17.10
Wheels MSM
23.00
19.99
16.33
20.07
21.74
19.03
17.18
17.95
Benchmark of Excellence
21.43
19.53
16.59
20.02
20.22
18.35
15.61
17.37
30 July/August 2014 www.canadianshipper.com
Masters of faster
2014
W
SHIPPER’S
CHOICE
hen shippers purchase courier
services, on-time delivery is an
obvious must along with customer service and a sophisticated technology
platform that provides customers with visibility.The challenge for couriers is that these
high-cost KPIs must line up with the reality
of shippers’ second highest priority when
choosing one courier over another: price.
This holds particularly true for the
growing market of online sales, a distinct
growth area for couriers which is hotly contested. Maintaining competitive rates and
service for online sales is even more challenging in Canada where less populated city
centres separated by greater distances than is
the case in the US are definite obstacles.
More than 1,300 shippers provided
more than 2,200 carrier evaluations for the
courier category, one of the most challenging modes when it comes to meeting shipper expectations. Seven companies surpassed the benchmark this year. Courier
winners and their scores for each of our
eight KPIs are shown in the table below.
The bottom row of the table shows this
mode’s Benchmark of Excellence for each
KPI. The total Benchmark of Excellence is
indicated on the top right. The winners are
shown in alphabetical order and only those
scoring above the total Benchmark of Excellence are included.
Courier Award Winners
Total no. of shippers evaluating carriers in this mode: 1,332 Total carrier evaluations: 2,317 Benchmark of Excellence: 141.136
Carriers
On-time
performance
Quality of
equipment &
operations
Information
technology
Competitive
pricing
Customer
service
Leadership
in problem
solving
Armour Courier Services
22.37
18.93
Cardinal Courier
21.63
17.18
Ability
to provide
value-added
services
19.26
20.29
20.58
19.04
17.16
17.86
16.31
20.94
18.41
16.82
16.09
16.59
Sustainable
Transportation
Practices
DB Schenker
20.51
18.10
18.64
18.17
19.20
17.64
15.86
16.16
Dicom
20.92
18.59
19.06
21.19
18.85
17.98
16.31
17.46
16.54
FedEx
21.27
18.90
19.83
18.40
18.70
16.66
14.43
Midland Courier
22.48
19.19
19.17
20.33
20.36
18.28
15.88
17.41
Tiger Courier
21.36
17.21
17.19
20.22
20.44
17.89
16.79
17.26
Benchmark of Excellence
20.79
18.17
18.71
18.73
18.06
16.25
14.27
16.15
32 July/August 2014 www.canadianshipper.com
2014
Flying high
SHIPPER’S
CHOICE
A
irfreight carriers, battling chronic
overcapacity and deteriorating
yields, have been contracting their
fleet size.Yet on-time performance and customer service are the two most important
KPIs for buyers of airfreight services. Walking this tightrope is a definite challenge.
Airfreight carrier winners and their
scores for each of our eight KPIs are shown
in the table below. The bottom row of the
table shows this mode’s Benchmark of Excellence for each KPI.The total Benchmark
of Excellence is indicated on the top right.
The winners are shown in alphabetical order and only those scoring above the total
Benchmark of Excellence are included.
Air Carrier Award Winners
Total no. of shippers evaluating carriers in this mode: 652 Total carrier evaluations: 371 Benchmark of Excellence: 145.878
Carriers
On-time
performance
Quality of
equipment &
operations
Information
technology
Competitive
pricing
Customer
service
Leadership
in problem
solving
Ability
to provide
value-added
services
Sustainable
Transportation
Practices
Cargojet
21.36
19.26
16.90
18.55
19.91
17.98
15.71
16.60
Cathay Pacific
21.28
19.90
18.67
17.92
21.41
19.02
16.52
17.71
Korean Airlines
22.65
20.39
18.19
20.68
18.41
15.93
14.84
16.08
Lufthansa
22.16
20.67
20.89
17.71
21.54
18.94
16.28
17.62
Benchmark of Excellence
20.87
19.17
18.35
18.82
19.19
17.76
15.30
16.42
34 July/August 2014 www.canadianshipper.com
2014
Current of content
SHIPPER’S
CHOICE
C
ompetitive pricing drives decision making in marine services, for both shippers
and carriers. Price is repeatedly the top
criteria in selecting a marine carrier in our survey. The industry’s major players on the other
hand have been forming alliances in an attempt
to shore up sagging freight rates as well as raise
ROI and reduce high-capital investments.
Marine winners and their scores for each
of our eight KPIs are shown in the table below.
The bottom row of the table shows this mode’s
Benchmark of Excellence for each KPI. The
total Benchmark of Excellence is indicated on
the top right. The winners are shown in alphabetical order and only those scoring above the
total Benchmark of Excellence are included.
Ocean Carrier Award Winners
Total no. of shippers evaluating carriers in this mode: 541 Total carrier evaluations: 562 Benchmark of Excellence: 143.833
On-time
performance
Quality of
equipment &
operations
Evergreen
18.35
16.90
NYK
18.66
18.85
Oceanex
20.04
18.52
17.98
19.24
Benchmark of Excellence
19.51
18.40
17.56
19.43
Carriers
36 July/August 2014 www.canadianshipper.com
Information
technology
Competitive
pricing
Customer
service
Leadership
in problem
solving
Ability
to provide
value-added
services
19.21
19.79
22.75
18.98
16.98
19.26
18.06
19.84
19.43
17.60
15.69
16.45
19.21
17.89
15.28
16.59
19.22
17.43
15.71
16.57
Sustainable
Transportation
Practices
2014
CARRIERS OF CHOICE
SHIPPER’S
CHOICE
Consistency of performance deserves a special award
C
arriers are presented with this prestigious award if they have demonstrated the consistency necessary to
attain the highest levels of service by surpassing the industry Benchmarks of Excellence set in the Shipper’s Choice Awards
Survey for a minimum of five consecutive
years. This is a particularly difficult task because aside from having to maintain consis-
tent excellence in their operations, carriers
will have to meet a likely rising standard set
by shippers from year to year while also responding to changing priorities.
To remain part of this exclusive fraternity, carriers must requalify each year by
having surpassed the Shipper’s Choice
Awards Benchmark of Excellence for five
consecutive years.
CARRIER
Congratulations to
the 2014 Carriers of Choice
OF CHOICE
Big Freight
Hercules
Robert Transport
Cardinal Couriers
Kriska Transport
Tiger Courier
Cargojet
Mackinnon Transport
Wheels MSM
DB Schenker
Midland Transport
FedEx
Polaris Transportation
38 July/August 2014 www.canadianshipper.com