At Spot, we understand the vital role that up-to-date information plays in navigating the dynamic logistics market. Each month, we bring you a comprehensive logistics market update. We dive into the latest trends, challenges, and innovations shaping the logistics sector. Join us as we empower you with the knowledge needed to make informed decisions in this fast-paced industry. Market Update.
Demand Level & Outlook
Retail & Manufacturing Impacts
Importers cite persistent geopolitical and regulatory volatility, leading to:
- Cautious inventory positions
- Delayed orders
- Tariff-related cost uncertainty
Manufacturers tied to Chinese imports are particularly strained, with shipments to the U.S. falling over 25% YoY.
Holiday Season 2025 Outlook
Retailers remain well-stocked, preventing shortages, but that is a sign of reduced ordering, not healthy demand and port trackers anticipate the slowest December since March 2023.
Supply, Capacity, and Carrier Operating Costs
Massive Productivity Losses Shrink Effective Capacity
Lost driver time is effectively lost supply:
- 135.9 million hours lost annually due to detention.
- 1.2 billion hours lost annually due to congestion.
These productivity losses convert directly into higher operating costs and reduce the effective capacity available in the network.
Tariffs Are Increasing Equipment Costs
New heavy-duty truck tariffs took effect in November. Although less severe than expected, these new policies will increase tractor and parts costs, incentivize reshoring U.S. production, and delay OEM capacity expansions.
Spot & Contract Market Trends
Contract Rates: Stable but Unsustainably Low
Contract rates have been essentially flat since mid-2024, rising only 1% over the last 15 months. Despite this stability, they now sit just 16% above 2019 levels, even though carrier operating costs have increased roughly 33% in that same period.
This creates a widening and unsustainable gap between revenue and expenses for carriers.
Market Update.