March 19, 2025 • Market Updates
We’ve seen some ups and downs in 2025 so far. At FSL we’re looking to Quarter 2 for growth and success as we leave the usual post-holiday slump behind. Spring is around the corner, bringing sunshine and opportunity. As we prepare for the usual boon in produce and construction that comes with Q2, we want to share our other expectations:
Continuation of a Freight Recovery
According to the American Trucking Association, there is reason to be optimistic, as truck tonnage increased by 3% in February. Some of this increase can be accounted for by escalated imports ahead of U.S. tariffs. Even with this, after a 2-year freight recession, freight recovery is on the horizon as 2025 continues.
Push for Intermodal Transportation
In the wake of import surges, volume is now stateside. Now, it’s up to clients to decide the urgency of the transportation of this volume. An increase in intermodal demand, particularly out of L.A. as shown above, spells for a decrease in time sensitive freight. Not only are truckload volumes being undercut by rail usage, but expedited freight may be harder to come by.
Economic Flux Makes for Wary Consumers
Current administration decisions have caused uncertainty among shippers and consumers alike. From economic impacts like tariffs and mass lay-offs, the average consumer may not be so apt to spend. We may see outbound tender volumes decrease. This is a data-set that we will keep a close eye on as we transition into Q2.
Shift in Warehousing Strategy
Shippers and manufacturers do not often sit on piles of inventory. The cost of warehousing excess goods makes for a Just-In-Time (JIT) inventory model. This is the standard method of receiving goods, but in the shadow of looming trade and tariff policies, shippers are shifting toward a Just-In-Case (JIC) inventory model. This means an increase in storage demand and a need for inventory optimization. Rerouting and repackaging needs will rise as well, and this is where freight experts like Full Sail Logistics are able to help.
Overcapacity Issues and Halting Fleet Expansions
Current carriers are in competition on how best to remain viable to shippers and brokers. With consumer demand down, outbound volumes are limited, leaving too many trucks to fight over tenders. At the beginning of 2025, many fleets were looking to expand, perhaps merging and accruing smaller fleets. Lack of volumes, impending emissions standards, and increase in tractor prices all mean a stop to fleet expansions.
Guarded optimism is the prevailing feeling going into Q2. So, keep a positive outlook and your head on swivel. And rely on a knowledgeable and tech-forward freight broker like FSL to lead you through the end of this quarter and onto the next.
Want to know how Q1 stacked up against our expectations?
See for yourself!
