March 30, 2026 • Market Updates
As Q1 comes to an end, we’ve seen a period of unpredictability roll out. As we work to navigate changes and impacts for this next quarter, we’ll guide through our expectations for April and beyond. So, what’s Q2 going to look like?
Flatbed Rejection Rates Remain Elevated
As manufacturing and construction pick back up in the wake of the Supreme Court’s Trump tariffs strikedown, flatbed rejection rates are expected to remain elevated. Spring and summer always spell a high demand for flatbed equipment as seasonal projects begin. Carriers will prioritize their opportunities, and as the spot market swings in their favor, contractual freight may feel the squeeze.
Fuel Prices Fluctuation Impacts Spot Rates
The war on Iran impacts the transportation of oil through the Strait of Hormuz, causing fuel prices across the globe to rise. Diesel price often affects spot market rates. The current market is already positioned in favor of carriers as of late, so increasing fuel prices only looks to intensify this. We expect a fluctuating spot market until talks with Iran make diplomatic progress or the war is ended.
Produce Season Exacerbates Capacity Tightening
Produce season depends on various equipment types to handle freight transportation. Flatbed capacity in particular will see a further tightening as produce season begins in tandem with manufacturing and construction surges. Demand on dry vans and reefers may be stronger than ever to fill in the gaps in flatbed capacity. Other equipment such as hoppers and vented vans may see an uptick in demand, too. We’ve got you covered in all equipment types either way!
A Shift Toward Intermodal Demand
When capacity is strained and spot rates are high, shippers will evaluate the urgency of shipments. With fuel impacts, seasonality, and high spot market rates, Q2 will see an increased demand in intermodal shipments. This also means a decrease in long hauls, especially cross-country shipments. An uptick in team and expedited shipments may also come hand-in-hand with this as clients try to justify reliance on a high spot market.
Slower Produce Season
Even though produce season is a constant, the volume of each year’s season varies. Military action in Iran causes trouble for farmers as fuel and fertilizer supplies halt. Now is a crucial time in the year to tee up a successful season, but it looks like we may see lower volumes this year unless the situation in Iran changes.
Spring Weather Events Affect Transportation
As always, spring brings sunshine and much to do. Volumes across food production, manufacturing, and construction are expected to increase, but spring weather can bring anything to a stop. Common weather events like flash floods are expected with major storms already impacting Hawaii. Wildfire season has also started extremely early this year, with fires in Colorado, Nebraska, South Dakota, Wyoming, and New Jersey. The west and southeast are at particular risk for a grueling wildfire season. With these predicted events and more, we’ll be on the lookout for route impacts as Q2 begins.
If these expectations seem daunting to you, don’t worry. Full Sail Logistics is the ideal partner to get you through these unpredictable times in the market. We keep an eye on impacting events, so you’re never left without a solution. If you want to partner with a broker who has the tools to support you through difficult times, look no further than FSL. Partner with us today!
