In the latest episode of More Than a Broker, Spot Co-Founder, Andrew Elsener, sits down with two of Spot’s industry veterans and Senior National Account Directors, Theo Mascari and Alex Buening, to break down today’s unpredictable freight environment. Here are the key takeaways from the discussion.
Forecasting is Harder Than Ever
Unlike the COVID-era demand surge, today’s volatility is driven by sudden regional swings and shifting carrier behavior. Produce lanes and long-haul routes off the West Coast have seen overnight rate spikes of 30% to 40% and in some cases, rates have doubled without warning.
Tech Infrastructure Is Siphoning Flatbed Capacity
AI and data center construction projects drive wild spot market swings. Because these high-priority tech projects operate on massive engineering budgets rather than strict freight caps, carriers are pulled away from everyday industrial and manufacturing shippers. In cities like Los Angeles, flatbed rates on identical lanes can jump up 25% overnight.
Supply Chain Inefficiencies Drive Up Costs
Delays at the facility level are compounding capacity constraints across the board:
- Dock Delays: Live-load times stretching 5 to 6 hours waste a driver’s hours of service, cutting their maximum daily distance nearly in half.
- ELD Enforcement: Regulatory crackdowns on ELD workarounds means a delayed pickup now directly translates to a missed delivery window.
- Trailer Staging: Shippers using drop trailers as temporary yard storage are pulling critical asset capacity out of circulation.
Frequent Bidding Backfires
Chasing short-term rate cuts through constant mini bids often costs shippers more in the long run. New or low-cost providers frequently underprice lanes without accounting for execution hurdles (like weekend pickups or rural origins). When those providers fail, switching back to primary or spot capacity creates high-cost penalties.
The Bottom Line
Data shows that shippers who prioritize strong, consistent routing guides and dedicated carrier relationships consistently pay lower freight costs than those relying on variable, auction-style tendering.
When market predictability drops, stable partnerships win.