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.
How Spot & Red Technologies Build Practical, Real-World AI Solutions That Actually Work
Artificial intelligence isn’t new to logistics, but honest conversations about what actually works are. For years, Spot’s wholly-owned subsidiary and technology arm, Red Technologies, has been building and deploying AI in ways that reflect the real-world pace, pressure, and complexity of freight. The work wasn’t linear; it was iterative and deeply collaborative.
What follows is a behind-the-scenes look at how the engineers, data scientists, and operations teams of Red Technologies have adopted AI by doing what logistics has always required: solving the problem directly in front of them, learning from the people closest to the work, and scaling only when the results earn it.
This whitepaper blends two perspectives rarely found in a single narrative:
- The data side: where AI is fueled, shaped, and validated
- The development side: where ideas become actual systems inside Spot’s platform
Together, the two perspectives reveal how the Red Technologies team approaches AI with clarity, humility, and a firm focus on operational value.
Read and download the latest white paper here
In the logistics industry, we are used to high-stakes deadlines and urgent requests. It could be a production line shut down or a retail shelf that needs restocking. But one Tuesday night, Brian Jobe, a Senior National Account Director at Spot, received a call from a longtime customer that changed his perspective on what “urgent” really means.
The Request: Two Cases, One Huge Problem
The call came in late. Jobe’s customer, a baby formula manufacturer, needed a shipment moved from Indianapolis to Kentucky immediately.
At first glance, it didn’t sound like much—just two small cases. But the backstory was more serious. A mother in Kentucky was down to her last scoops of specialized formula for her son. Because of his severe dietary restrictions, this wasn’t something she could just pick up at a local grocery store. Her original shipment had been delayed for days, and she was in a state of pure panic.
The situation had escalated all the way to the manufacturer’s CEO. That’s when they called us.
Going the Extra Mile (Literally)
Jobe knew we couldn’t just treat this like any other load.
- The Search: Jobe immediately tapped into Spot’s carrier network and found a trusted partner an hour away who was willing to push his limits to make the pickup before the facility closed.
- The Communication: As the driver headed south, Jobe got on the phone with the mother of the infant in need of the formula. He could hear the panic in her voice. He gave her his personal cell number and promised her, “We’ve got you. I will stay awake until this is at your door.”
- The Delivery: Throughout the night, Jobe traded updates. At 4:00 A.M., the driver arrived at a quiet residential neighborhood. To ensure the exhausted mother could get as much sleep as possible, the driver quietly tucked the formula into a safe spot, snapped a photo, and moved on.
Why We Do What We Do
The next morning, Jobe’s phone was full of text messages, and he received phone calls from his customer. The mother even called him, calling the team “lifesavers.” His customer reached out to say that this was exactly why they trusted Spot—they knew that when things got dire, Jobe’s team and Spot wouldn’t just provide a truck; we would provide a solution.
In logistics, we often get caught up in the numbers, the ETAs, and the bottom line. But that night, it wasn’t about a “shipment.” It was about an infant who needed to eat and a mother who needed peace of mind.
At Spot, we understand that behind every pallet—or in this case, every small box—there is a person counting on us.
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, three members of Spot’s Red Technologies team sat down to discuss the integration of AI in logistics, focusing on its definitions, importance, and the journey of implementation at Spot.
Director of Red Technologies Ben Garvin led a conversation with Alex Johnson, Director of Development Operations, and Tyler Hampton, Director of Data Science and Engineering, that focused on the significance of intelligent automation, the workforce skills gap, and the evolving nature of jobs driven by AI. They share insights on successful case studies, common pitfalls in AI adoption, and the future roadmap for AI innovations at Spot, highlighting the collaborative culture that drives their technological advancements.
About Red Technologies
Red Technologies, a wholly owned subsidiary of Spot, was founded by Andy Schenck and Andrew Elsener in 2019. Through their experience in the 3PL space and building a network of close relationships with carriers and shippers, Andy and Andrew realized that having the right technology in place would increase efficiency and streamline communication for their customers and their customers’ operations. Rather than implementing an out-of-the-box solution, they developed proprietary software, MySpot, a transportation management system (TMS) that provides complete visibility into customers’ supply chain operations.
Reasons to Listen
- AI is about building systems that can understand and act on information.
- Intelligent automation is crucial for enhancing business processes.
- AI will not replace jobs but will change how they are performed.
- Developers must maintain a holistic understanding of their work despite AI tools.
- A single source of truth for data is essential for effective AI implementation.
- Focusing on one problem at a time leads to better AI solutions.
- AI can significantly improve customer service and operational efficiency.
- Collaboration between tech and business teams is vital for successful AI projects.
- The future of AI at Spot includes innovations in customer support and pricing models.
- Continuous feedback from users is essential for refining AI tools.
Spot, a leading logistics solutions provider, is proud to be named a 2025 Top Company for Women to Work in Transportation by Redefining the Road, the official magazine for the Women in Trucking Association (WIT).
Redefining the Road magazine highlights the 2025 Top Companies list in Edition 3, published on Oct. 29. This recognition program, developed in 2018, supports part of WIT’s mission: promoting the accomplishments of companies focused on the employment of women in the trucking industry, according to Jennifer Hedrick, CAE, president and CEO of WIT.  Â
“Spot is to be commended for earning recognition as a 2025 Top Company for Women to Work in Transportation by Redefining the Road, the official magazine for the Women in Trucking Association,” said Brian Everett, Group Publisher and Editorial Director. “Organizations recognized on this impressive list have proven they are supportive of gender diversity by accommodating family and work balance; offering competitive compensation, benefits, and professional growth; and providing career advancement opportunities. Spot is commended for earning this award.”
Nominations for the accolade were received by Redefining the Road and reviewed based on several characteristics that distinguish the companies recognized on this list, including corporate cultures that champion the employment and advancement of women in trucking; competitive compensation and benefits; flexible hours and work requirements; professional development opportunities; and career advancement opportunities.
If the company’s nomination is accepted, the marketplace then votes to determine whether the nominated company is worthy of this recognition. The voting portion of this nomination carries significant weight in determining whether the company is chosen as a winner. More than 21,000 transportation professionals participated in the industry vote during June.
You can view the full list at womenintrucking.org.
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 & OutlookÂ
Industrial & Manufacturing DemandÂ
- What’s happening: Industrial production for equipment (like machinery and electrical tools) has fallen 2.2% since April. New manufacturing orders have moved into contraction.Â
- Why it matters:Â Reduced production means fewer long-haul shipments of machinery and industrial freight.Â
- Tariffs on imported goods and machinery from China are making production more expensive, discouraging new orders.Â
- Impact: Lower freight volumes from manufacturing and industrial sectors, especially for high-value, long-distance loads.Â
Tariffs & Trade DisruptionÂ
- What’s happening:Â
- Goods from China carry a 10% tariff, with an additional 34% delayed until November 10.Â
- Tariffs on lumber, furniture, and cabinetry are already active.Â
- Truck parts may face 25–100% tariffs.Â
- The overall U.S. tariff rate could reach 20% by the end of the year.Â
- Why it matters: Importers front-loaded shipments earlier in the year to avoid tariffs, leaving later volumes lower.Â
- Impact:Â Softer import-driven freight in the second half of the year, especially at ports and intermodal hubs. Higher costs ripple through domestic supply chains.Â
Supply, Capacity, and Carrier Operating CostsÂ
Carrier Supply & Market ExitsÂ
- What’s happening: More trucking companies exited than entered the market in Q3. Trucking employment is down 3.1% from last year.Â
- Why it matters:Â Small carriers are struggling to absorb higher costs and are leaving the market, reducing total capacity.Â
- Impact:Â Tightening capacity could stabilize or slightly increase rates even without stronger demand.Â
Regulations & LaborÂ
- What’s happening:Â
- A new FMCSA rule may remove up to 194,000 non-domiciled CDL drivers.Â
- Immigration enforcement is leading some drivers to exit the industry.Â
- Visa rule changes and the drug and alcohol clearinghouse continue to reduce the driver pool.Â
- Why it matters:Â Fewer available drivers limit capacity, especially in southern and border regions.Â
- Impact:Â Tighter capacity raises spot rates in affected regions.Â
Spot & Contract Market TrendsÂ
- Overall: The market remains supply-driven, not demand-driven. Freight volumes are flat, but rates are rising slightly due to tightening capacity.Â
- Dry Van: $1.70 per mile nationally, steady but firming in the Midwest and southern border regions.Â
- Reefer:Â $2.07 per mile, up sharply in Texas border markets due to immigration enforcement.Â
- Flatbed:Â $2.07 per mile, stable but stronger in the Southeast.Â
- Contract Rates:Â Mostly flat, with shippers still holding leverage in negotiations.Â
- Impact:Â Spot rates are rising in certain lanes because of capacity constraints rather than increased demand.Â
Market Update.
In this episode of ‘More Than a Broker’, Spot Co-Founder Andrew Elsener is joined by Dr. Zac Rogers, PhD., Associate Professor of Operations and Supply Chain Management at Colorado State University, for a discussion on the evolution of supply chain education, the significance of the Logistics Managed Index (LMI), and the impact of economic indicators on transportation and logistics.
The conversation examines the impact of the COVID-19 pandemic on supply chains, the implications of tariffs on the market, and the ever-changing dynamics of retail peak seasons.
The pair also touches on the future of reshoring and nearshoring, the importance of data and analytics in logistics, and conclude with insights on the logistics industry’s future.
About Dr. Zac Rogers
Dr. Zac Rogers is an Associate Professor of Operations and Supply Chain Management at Colorado State University. His primary research interests include the financial impact of supply chain sustainability, emerging logistics technologies, supply chain cybersecurity, and various other emerging issues in purchasing and logistics.
Dr. Rogers’ work has appeared in multiple academic journals, corporate white papers, trade publications, and conference proceedings. He is also a frequent speaker at both academic and practitioner-oriented conferences. Dr. Rogers earned his B.S. and M.B.A. degrees at the University of Nevada, Reno, and his PhD in supply chain management from Arizona State University. Before returning to academia, Dr. Rogers worked as a purchasing agent for a large hotel and resort, and as an operations manager for Quidsi, a subsidiary of Amazon.
Reasons to Listen
- Supply chain education is still a relatively new field.
- The Logistics Managed Index (LMI) predicts economic activity through transportation metrics.
- COVID-19 caused unprecedented changes in supply chain dynamics.
- Tariffs have a significant impact on supply chain costs and strategies.
- Retailers are experiencing a bifurcated peak season due to inventory management.
- Reshoring and nearshoring are becoming more prevalent in supply chain strategies.
- Data and analytics are crucial for optimizing logistics operations.
- The logistics industry is evolving rapidly, requiring constant adaptation.
- Understanding economic indicators can help predict market trends.
- Collaboration and innovation are key to navigating supply chain challenges.
Carriers & Drivers – Thank you.
Thank you for the long miles traveled. For the time spent away from your loved ones. For the tough days, in tough conditions. 
We see your tireless efforts and the sacrifices you make every single day. 
Thank you for keeping our shelves stocked, our businesses running, and our economy moving. You deliver the goods that we need to live our lives. Your contributions create a positive ripple felt throughout our communities. 
We extend our gratitude for your tireless efforts, unwavering dedication, and unwavering commitment to our industry. 
Thank you for being an indispensable part of our lives. We look forward to a successful future together. 
We are proud to announce our annual Carriers of the Year for 2025 as part of National Truck Driver Appreciation Week. Each carrier has excelled in their categories and has never lost their drive to deliver.
Spot’s 2025 Carriers of the Year
Southwest – Gallegos Transport
Southeast – BJH Transportation, LLC
South Central – VIFA Logistics
Northwest – Trujillos Trucking
Northeast – Fenton Logistics, LLC
Midwest – Vanner, Inc.
Great Lakes – Crossroads Express Transportation
LTL – Estes Express Lines
Owner Operator – Twin Pines Transportation, LLC
Temperature Controlled – Andy Freight, Inc.
MySpot Carrier – Haulage Freight, LLC