The 2:00 Minute Warning

Now that we’re well into the fourth quarter, if you are a shipper, it might be a good time to step back and ask if you’re ready for the logistics challenges that could be ahead in 2025.

Some of you may be drawing a blank and wondering, “What are you talking about?” As we look forward into 2025, smart shippers are asking: Are we prepared for the changes we will be seeing in the transportation marketplace?

We’ve covered a lot of these topics in previous editions of the Two Minute Warning, but candidly, at times we have to wonder, is our message getting through? We know you probably have a lot on your plate, so briefly summarized, here are some important issues that shippers will be addressing in 2025.

For now, expect to see volatility in rates – especially in the truckload and ocean markets. Consider the fact that in the past three weeks, we have seen spot market rates in the truckload sector increase by 17%. Rates in the ocean market are going up and down based on a variety of factors.

So if shippers are looking for some sense of stability and predictability in 2025, they may be disappointed as rates could change overnight based on external factors such as hurricanes, geopolitical issues, or other unforeseen events. If you don’t develop contingency plans, you could see your freight costs go through the roof and a lot of confusion within your organization.

We are also expecting to see variability with LTL costs. With the changes forthcoming from the National Motor Freight Traffic Association (NMFTA) shippers without dimensionalizers may be surprised when they see variances between what they thought their freight charges would be and what the carriers actually bill them for the freight being handled.

Finally, we think viability will be an issue when it comes to capacity in the truckload marketplace. Specifically, unless the truckload market emerges from this historic freight recession, things will change. Space precludes us from addressing the most significant issues affecting the small to mid-size trucking companies, but we expect to see some of these carriers close their doors or be acquired. This could reduce capacity and cause some carriers to seek more aggressive rate increases.

Add it all up and the volatility, variability and viability will affect virtually every sector in the transportation marketplace. Since this is a Two Minute Warning and not a Fifteen Minute Warning, time and space preclude addressing all these issues. But rest assured, with TranzAct’s great network we have gleaned important information about the things that are happening in the transportation markets and how they could impact the operations and financial results for shippers and we would be happy to share these insights with you.

If you are interested in learning more about what is happening or if you would like an update on how these issues in the truckload, ocean, LTL or parcel sectors could impact your 2025 financial results. Simply contact us or better yet, let’s set up a one–on–one discussion via Calendly.   

BY MIKE REGAN, CO-FOUNDER OF TRANZACT

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