CITT + Desjardins Industry Survey Results & Analysis

In August 2023, CITT and Desjardins conducted a survey to get the pulse of the industry. We review the results with Benoit Poirier, CFA, MBA, of Desjardins Capital Markets.

Trends come and go but are always worth examining. In the transportation industry, the more we know about what’s coming down the road the better we can prepare to manage whatever it is. To help get a better look into key market trends affecting the transportation and logistics industry, CITT recently partnered with Desjardins to conduct a survey of our members.

The survey was conducted through July and August 2023 and in total, roughly 250 participants from around the logistics industry participated. This included members from rail, truckers, retailers and e-tailers, port authorities and many more corners of our world.

Following the survey, we caught up with Benoit Poirier, CFA MBA and Managing Director, Industrials, Transportation and Aerospace Analyst at Desjardin Capital Markets to chat about the results and get his take.

Benoit Poirier
Managing Director, Industrials, Transportation and Aerospace Analyst
Desjardin Capital Markets

 

Top highlights from Desjardins survey

1. We’re in a freight recession

One of the key highlights from the survey is that a majority of respondents agreed that our industry is currently in a “freight recession”. According to Benoit this situation might not be getting better any time soon, but thankfully might not get any worse in the meantime.

According to Benoit, “I think that one of the first highlights you have is that the freight recession is well underway. Many people don't see it getting worse though. But that said, they also don't see it getting any better, so shippers are kind of hedging their bets.”

2. Cost inflation is the number one concern across the board

According to the survey, 83% of respondents said cost inflation was the number one risk factor facing transportation right now. Nearly 50% of respondents also reported that their workforces remain understaffed, creating a double-barreled risk factor, risks however that Benoit believes will ultimately be smoothed over.

“Over time I would expect the lack of staff to improve. 47% of participants highlighted this lack as being more of an issue than service issues or regulation, so as that works out, overall I think we’re going to see an improvement in supply chain issues.”

3. The Great Inventory Destocking may be coming to an end

While the above supply chain issues iron themselves out, another trend we’re seeing is that the so-called Great Inventory Destocking may be coming to an end. Here too, more than 50% of respondents agreed that supply chains are stabilizing. Even so, a large number of respondents believe the “Just-in-Case” COVID-era supply chain ethos is here to stay long term.

“A lot of organizations are finally working their way through the excess inventory that they had there. We're probably still going to see a lot of promotional activity because back to school was slow, and a lot of companies are going to have to make some pretty difficult forecasting decisions based on what they've got now and what they hope to have on hand through the coming peak season.”

Suffice to say, over the coming months will be interesting to see how many of the trends we’ve identified are here to stay, or set to roll away.

Download the complete survey results & analysis report now