Research built for present and future c-suite executives.
We thought it would be an interesting exercise to take the 2019 Fortune 500 list and
break out the Top 100 shippers of freight. The Fortune 500 is an annual, iconic
tradition that lists the Top 500 companies in the U.S. by revenue, public or private as
long as they file financial statements with the U.S. government.
We then narrowed down the list by removing any companies that do not
consistently pay to move physical goods or freight as part of their regular operations.
Doing so eliminated virtually all technology, healthcare, financials, utilities and some
industrials (such as airlines) from the list. We also removed any transportation
companies that made the list as moving freight would be revenue and not an
expense.
Once we narrowed down the Fortune 500 to the Top 100 shippers, we then made
several important assumptions. First, we assumed that the biggest shippers in the
U.S. spend 5% of their revenue on transportation. Second, we used the chart below
from Goldman Sachs and SJ Consulting that breaks down the North American
logistics market in 2018. As one can see, the $743 billion trucking market (including
both for-hire and private fleets) accounted for 62% of total transportation spend.
Therefore, we assumed that, of the 5% of revenue that top 100 shippers spend on
transportation, 62% of it was spent on trucking. When you run through those
assumptions, the bottom line is that the top 100 shippers in the U.S. account for 23%
of total trucking spend.
You have selected content that's only available to members of FreightWaves Passport. As a member, you gain immediate access to the most in-depth and informative freight research available. It's your gateway to continuing education.
Members also get:
Click below to learn more and sign up today!
Subscribe
Existing Passport subscribers may log in using the form below.
Andrew is research analyst on the Freight Intel Group and a recent graduate of the University of Tennessee at Chattanooga, where he graduated magna cum laude. Andrew started as an intern with FreightWaves in October 2018 and joined full-time upon graduation. He co-hosts the freight finance podcast "Great Quarter, Guys" on Tuesdays at 2 p.m. EST.