MIT report on the value of On-Time-Deliveries (OTD) in relation to payment for transportation

The study showed that although there is no correlation for better OTD when a shipper pays a higher rate, there was a distinct correlation for poor OTD when a shipper pays a lower than average cost.  The study found that shippers that paid less than $50 average per shipment had a significant reduction in service (40%-70% OTD) vs shippers that paid market rates. 

This aligns with JBS’ pricing tariffs which are generally within 5% of the average market rate.  Last year JBS’ OTD matrix for TL business was at 97.5%.

Click below to see the full report:

Higher_Rates_White_Paper_MIT

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