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.
Canadian Tariffs Surge: A Hidden Shock
While China has dominated the headlines, Canadian imports are bearing the brunt of new tariffs under the current administration:
•Average monthly tariffs in 2024: $34M
•March & April 2025 tariffs: $660M and $675M, a 19.5x increase
•June is expected to surge again due to 50% tariffs on steel/metal
Top affected categories
•Unwrought aluminum: $123.7M
•Auto parts: $67.5M
•Finished vehicles: $52.2M
Operating Costs: Inflation Without Pricing Power
- Stagflation Strains Margins: Carriers face the worst of both worlds, flat volumes and rates paired with rising costs. This stagflationary environment has forced many into cost-deferral decisions that may backfire long term (e.g., delayed maintenance, equipment replacement).
- Insurance a Top Pressure Point: Premiums are skyrocketing due to increased litigation and nuclear verdicts (claims >$10M). Carriers are also contending with cargo theft risks, including sophisticated scams like identity manipulation and double brokering.
Supply & Capacity: A Market in Contraction
- Carrier Exits Hit New High: In April 2025, 7,474 trucking companies exited the market, a 12-month peak and a 26% increase from March. Weekly revocation rates remain elevated, with more than 1,500 carriers losing authority each week.
- New Entrants Defy the Trend: Despite exits, new carrier authorities rose 48% month over month in April. Seasonal optimism and the lure of an eventual rate rebound keep new players entering the market, though many may be underestimating the financial headwinds.
Market Update.
Spot has been recognized by FourKites®, a leader in AI-driven supply chain transformation, on its Premier Carrier List for the first half of 2025, identifying carriers and brokers that have shown outstanding tracking performance across all modes of transport globally.
The Premier Carrier List spotlights carriers and brokers who consistently provide exceptional visibility and service quality to their customers. These carriers reduce manual check calls, minimize dwell time, streamline carrier-shipper workflows, and help shippers respond quickly to operational changes and disruptions.
As a leader in AI-driven supply chain transformation, FourKites pioneered the Intelligent Control Tower™ powered by the world’s largest real-time visibility network. Their platform creates comprehensive digital twins of your supply chain with AI-powered digital workers to automate resolution, improve collaboration, and drive outcomes across all stakeholders.
View The Full List >> https://www.fourkites.com/premier-carriers/
In Logistics, time is everything.
It’s measured in transit windows, response times, dock appointments, and delivery confirmations. It’s tracked, optimized, and compressed, and often lost in the margins between systems, partners, and priorities.
For many shippers, time becomes something to manage instead of something to use.
At Spot, we believe time should be given back.
That belief is a solid part of the foundations of The Spot Experience. The defining difference in how we serve our customers.
It’s not just how we move freight. It’s about how we spend our time so our customers can spend theirs on what matters most.
More Than Freight
Plenty of providers can say they move freight. Fewer can say they move it with intention.
We deliver more than shipments. We deliver confidence, clarity, and peace of mind. We do the things others won’t. We sweat the details others overlook. We focus on outcomes, not transactions. That means answering the phone when it rings. Solving problems before they escalate. Communicating proactively. Taking ownership when something goes wrong and making it right.
These moments may seem small, but they carry weight. When done consistently, they remove friction from the day. They reduce stress. They create confidence. And most importantly, they build trust and give time back.
Innovation That Works for People
Innovation is often defined by technology alone: faster systems, smarter algorithms, more data. However, we see it differently. True innovation happens when technology and people work together seamlessly.
We develop advanced technology designed to keep businesses moving. Our systems provide visibility, intelligence, and control across the supply chain. They help identify risks earlier, streamline decisions, and reduce friction.
But technology is only powerful when it’s paired with human insight.
The Spot Experience combines smart tools with smarter people: logistics experts who understand nuance, context, and urgency. People who know your business, your lanes, and your priorities. People who can translate data into action and action into results.
That’s innovation with purpose.
A Focus on What Matters Most
Logistics can easily become transactional. Rates, loads, lanes, repeat.
We choose a different approach.
At Spot, we focus on people, not transactions. On outcomes, not activities. On long-term partnerships, not short-term wins. We dedicate ourselves to what truly matters to our customers: reliability, clarity, and confidence.
When logistics works the way it should, it fades into the background. And when that happens, something powerful occurs when time reappears. Time to think strategically instead of reactively. Time to focus on customers instead of disruptions. Time to lead, plan, and grow.
And with that time comes peace of mind.
Doing Logistics Differently
What sets Spot apart isn’t a single service, system, or solution. It’s how everything works together. Our people, our technology, and our mindset. We spend our time differently, so our customers don’t have to spend theirs worrying, checking, or reacting.
We take on complexity so our customers can move with confidence.
That’s how we deliver more than freight. That’s how we deliver time back.
In the dynamic world of logistics, understanding market shifts and their implications on supply and demand is crucial. In this episode of More Than a Broker, Spot Cofounder Andrew Elsner engages with our Senior National Account Directors, Alex Buening and Theo Mascari, to explore how external factors are reshaping the logistics landscape.
The podcast also addresses the implications of regulatory changes, particularly the English Language Proficiency (ELP) guidelines and the non-domicile driver rule. These regulations have impacted driver availability and capacity, prompting shippers to reassess their strategies. The team discusses how these changes have led to changes in the spot market, affecting the overall supply and demand dynamics.
As the episode concludes, the experts reflect on how the logistics landscape is evolving. They agree that the focus on strategic partnerships with carriers is critical, as companies aim to streamline operations and reduce the number of vendors. The discussion underscores the importance of adaptability in a rapidly changing environment, with technology and regulatory factors playing key roles in shaping the future of logistics.
In summary, the logistics industry is currently navigating a complex landscape influenced by a variety of factors. From market shifts and capacity challenges to regulatory impacts and the need for strategic partnerships, it is clear that staying informed and adaptable is essential for success. As we move forward, embracing technology and fostering strong relationships within the supply chain will be vital in overcoming the challenges ahead.
Logistics Lessons in this Episode:
- Rapid Lane Shifts: Customers are demanding extreme flexibility and quickly reassigning lanes due to volatile market conditions.
- Technology as Table Stakes: Advanced reporting and technology are now mandatory requirements for securing business partnerships.
- Mini Bid Necessity: Mini bids are increasingly used to swiftly cover needs and mitigate risks following carrier failures.
- Strategic Partner Consolidation: Shippers are narrowing their focus to fewer, more reliable supply chain partners.
- Capacity Constraints: Regulatory changes are consistently impacting driver availability and tightening market capacity.
- Structural Market Reset: The logistics industry is experiencing a fundamental structural reset, not just a cyclical recession.
- Volatile Spot Rates: Supply constraints can cause freight rates to surge even amidst broader economic slumps.
- Evolving Broker Value: The role of the logistics broker is rapidly transforming to meet complex, evolving market demands.
- Pricing Optimization: Shippers are actively utilizing variable pricing models to achieve maximum cost efficiency.
- Tightening Market Forecast: Future projections anticipate a tighter market environment and potential rate increases.
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.
In this episode of More Than a Broker, Spot Co-Founder, Andrew Elsener, sits down with John Gatesman, CEO and Founder of Gatesman, an award-winning ad agency, as the pair compare insights into the logistics and marketing industries.
Gatesman shares his journey from aspiring to be a truck driver at a young age to becoming a successful entrepreneur. He emphasizes the importance of creativity, adaptability, and building strong client relationships in a rapidly changing business landscape.
The conversation also explores the impact of technology and AI on marketing, the importance of hiring for culture, and the lessons each has learned throughout their entrepreneurial journeys.
About John Gatesman
Under John Gatesman’s leadership, Gatesman has grown to become one of the most successful independent agencies in the Northeast, having been named one of the nation’s fastest-growing companies for nine consecutive years. Gatesman has also been recognized as one of the top 100 independent agencies nationwide and as one of the Best Places to Work for eight straight years.
John identified and led the successful acquisitions of digital firm Quest Fore in 2014 and Nobel Communications in 2017, which expanded agency operations into Chicago and the Midwest. His passion and devotion to his clients, along with his relentless pursuit of their success, continue to be the driving force behind Gateman’s agency’s mantra, “Good Enough Sucks.”
John’s leadership has guided and cultivated teams across a diverse array of notable brands, such as UPMC, Northwell Health, Coen Children’s, Del Monte, PPG, Disney, and many more. He began his career with Ross Roy Group after being selected as one of only six people nationally for its Executive Management Training Program. He then moved on to management positions at Ogilvy, Doner, and Ketchum before joining BNY Mellon as Senior Marketing Director and later Brunner as VP of Client Services, ultimately founding Gatesman in 2006.
Reasons to Listen
- Creativity can come from anywhere in a business.
- Starting a business requires a leap of faith and self-belief.
- Anticipating change is crucial for business success.
- Hiring for culture is as important as hiring for skills.
- Entrepreneurship is about responsibility and accountability.
- Building lasting client relationships is key to success.
- The importance of execution in service delivery cannot be overstated.
- Reflecting on past mistakes can guide future decisions.
- The future of marketing lies in embracing technology and AI.
In this episode of ‘More Than a Broker’, we had the distinct pleasure of hosting Greg Enas, an individual whose professional journey is as unique as it is inspiring. His story begins in the tumultuous 1960s in Berkeley, California, a childhood shaped by social upheaval and a working-class neighborhood that fostered resilience. From these formative years, Greg embarked on a career path that took several unexpected, yet profoundly impactful, turns, ultimately leading him to a distinguished 30-year tenure at Eli Lilly and Company.
Throughout our conversation, Greg generously shared invaluable insights into the essence of leadership, the relentless pursuit of innovation, and the fascinating, ever-evolving world of pharmaceuticals. His narrative offers a rare glimpse into the strategic thinking and personal dedication required to navigate complex industries and build a lasting legacy.
About Greg Enas
Greg Enas is currently a Venture Catalyst as the founder of Innovatov LLC, where he assists leaders across both for-profit and not-for-profit sectors in creating better enterprises, communities, and environments, allowing the world to be part of something greater than itself.
Greg attended Biola University in California, where he earned a BS in Mathematical Sciences, and later headed to the opposite coast to attend the Medical College of Virginia at Virginia Commonwealth University, where he earned a Ph.D. in Biostatistics.
From 1982 to 2011, Greg served at Eli Lilly and Company in Indianapolis, Indiana. He started as a senior statistician and was promoted into management in Statistical and Mathematical Sciences, Decision Sciences, and US Regulatory Affairs. He was responsible for external negotiation with governmental regulators and internal leadership for building capabilities and capacity for growth and impact.
Greg is also the co-founder of Citizen 7, a crowdsourcing organization that brings together men of various backgrounds to unite around different initiatives in the city to heal and grow the good in Indianapolis. Greg was also the founding Board Chair of The Oaks Academy from January 1998 to December 2006.
10 Reasons to Listen
- Inspiring Career Journey: Learn how an unexpected turn from an aspiring doctor to biostatistician led to a remarkable 30-year career at a pharmaceutical giant.
- Inside Look at Eli Lilly’s Evolution: Get a unique perspective on how a major pharmaceutical company transformed from punch cards to pioneering AI in drug development.
- Navigating Corporate Crises: Hear firsthand how Greg and his team tackled major challenges, including the early controversies surrounding Prozac, and helped save the company.
- The True Cost of Drug Development: Gain a deeper appreciation for the immense time, effort, and billions of dollars required to bring life-saving drugs to market.
- Insights into Pharmaceutical Regulation: Understand the complex process of getting drugs approved by health authorities like the FDA and the strategic work involved.
- Redefining Leadership: Discover Greg’s unconventional, yet highly effective, leadership philosophy, including his unique approach to flipping the organizational chart.
- Mentorship Matters: Learn about the profound impact key mentors had on Greg’s professional and personal life, from his math professor to his father.
- Developing Future Leaders: Hear practical advice on how to identify, develop, and empower young talent, even if it means sacrificing short-term gains for long-term success.
- Beyond the Bottom Line: Explore Greg’s perspective on measuring success in management, emphasizing ethics, humility, and a willingness to sacrifice for the collective good.
- Having a Career NorthStar: Be inspired by Greg’s dedication to making a difference, from his corporate career focused on human health to his current role as a community builder in Indianapolis.
Greg Enas’s journey is a testament to the power of adaptability, mentorship, and a commitment to ethical, servant leadership in driving both personal and organizational success.