White Paper: How much do paper and packaging companies spend on transportation?

Seth HolmFreight Market Blog, White Papers

FreightWaves estimates that the Top 5 U.S. paper and packaging companies had combined revenue of $68 billion and a combined market share of about 75% of the U.S. paper and packaging market. Assuming each spends 10% of its revenue on transportation, then as a group the companies spent approximately $7 billion on transportation in 2019.

The estimate of transportation spend as a percentage of revenue is based on the leading paper and packaging company spending $2 billion on U.S. transportation in 2015 compared to a total 2015 revenue of $20.7 billion (according to a 2015 Wall Street Journal article and interview with the CEO). This is about 9.7% of its total revenue.

This means that if FreightWaves (through its data intelligence and SONAR) can drive a 1% savings on transportation spend ($25 million in annual savings) that it would drive a 3% increase in net income for the leading paper and packaging company in 2020.

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