Transportation Highlights - February 2025

Service Spotlight: Dodging Delays & Hazmat Hurdles

Source |?Case Study

A leading agricultural chemical producer faced major challenges transporting hazardous materials (Hazmat) and tanker shipments across multiple states. Strict regulatory requirements, fluctuating freight costs, and limited carrier availability made it difficult for the company to find reliable and cost-effective logistics solutions. These delays disrupted the company's supply chain and impacted farmers who depended on timely deliveries of crop protection products.

Trucking Freight Demand Expected to Rebound in 2025

Source |?American Trucking Associations

The American Trucking Associations (ATA) projects a 1.6% growth in truck freight volumes for 2025, signaling a recovery after two years of declines. This rebound is driven by improving economic conditions, stabilizing freight demand, and a tightening capacity market.

Industry experts suggest that while the market is moving toward balance, challenges remain, including regulatory changes, labor constraints, and evolving fuel costs. Carriers and shippers alike are closely monitoring these shifts as they plan for the year ahead.

Warehouse Market Sees Cost Adjustments and Vacancy Shifts

Source |?WareHouseQuote

The Q1 2025 Warehouse Pricing Index Report highlights shifting dynamics in the warehousing sector. National average storage costs have continued to decline, marking a fourth consecutive quarter of decreases, while industrial vacancy rates have risen to 6.9%, signaling more available space in key markets.

With rental rates adjusting and demand stabilizing, companies are focusing on strategic warehouse placement to optimize shipping efficiency and control costs. As businesses adapt to these evolving conditions, flexibility and cost management will be key factors in warehousing decisions moving forward.

Intermodal Market Poised for Significant Growth in 2025

Source |?Yahoo Finance

The intermodal freight transportation market is projected to grow by $69.4 billion, with a compound annual growth rate (CAGR) of 7.2% in the coming years. As businesses look for ways to optimize supply chains and control costs, intermodal transport is expected to play an even larger role in freight movement. With continued investment in infrastructure and innovation, the sector is set to expand steadily throughout 2025 and beyond.

Asia-U.S. Ocean Rates Decline Amid Trade Uncertainty

Source |?FreightWaves

Trans-Pacific ocean freight rates are trending lower as manufacturing activity slows for Lunar New Year and demand softens. Rates to the U.S. West Coast have dropped 7% to $4,938 per FEU, while East Coast rates remain stable. However, uncertainty surrounding Trump’s proposed tariffs on China, Mexico, and Canada is creating concerns over potential trade disruptions that could impact future shipping costs and capacity.