Cost remains a major concern for shippers and carriers, especially in response to shifting economic and political dynamics, according to Breakthrough’s annual State of Transportation report.
The survey compiled feedback from 500 freight transportation leaders, including 150 carriers and 350 shippers, across the country on their goals and priorities for the year.
Breakthrough’s report highlighted an expected freight market flip that is likely to begin in Q2 2025. Its 2025 Freight Trends research projected freight demand to have a year-over-year growth in demand in May, estimating an average increase of 1.4% compared to the previous year. Dry van contract rates are also anticipated to be up by 3.2% and dry van spot rates by 9% in 2025.
The study highlighted that 57% of shippers noted cost as a major consideration when partnering with a carrier, followed by on-time pickup/delivery reliability (48%) and favorable shipment schedules (37%).
Shippers’ strategies reveal their concern for costs as they look for ways to optimize networks with the majority weighing alternative transportation modes for their loads. More than 55% put expanding their additional transportation modes, such as rail and intermodal, while 47% plan to expand volume with core carriers, compared with just 39% who plan to diversify carrier relationships.
Proving operations as financially sound is significant. Amongst shippers with more $500 million in annual revenue, 41% said they consider a carrier’s financial stability when establishing a partnership.
If the freight market flips, the report asked carriers about their strategies to explore opportunities, including expanding fleet size or services (49%), raising prices/renegotiating contracts with existing customers (43%), investing in route optimization technology (39%), signing more contracts with premium shippers (44%), diversifying customer base (43%) and expanding dedicated capacity (37%).
Headwinds on the horizon
A substantial portion of respondents, both shippers and carriers, anticipate that supply chain shortages (44%) could impact the industry. Additionally, about one-third foresee significant regulatory changes (34%) and labor disruptions in other areas of the supply chain occurring (33%).
Looking at sustainability, findings show that 87% of shippers have set long-term sustainability-related transportation goals for 2025, with the report noting that the top priority for most shippers remains emissions reduction.
While sustainability is still a focus, there’s a slight decline in long-term goals as they brace for potential cost pressures and uncertainty under the new White House administration.
“The federal government’s focus is shifting away from emissions policy and toward industrial policy, international trade and immigration,” the report wrote. “Meanwhile, consumers, who also drive corporate sustainability action, remain focused on the elevated cost of goods. As a result, shippers may face less pressure to showcase their sustainability commitments.”
A missed opportunity that the report pointed out is that only 14% of shippers include alternative energy requirements in their requests for information (RFIs) or proposals (RFPs). However, for those looking to reduce diesel use, these tools are key to shaping carrier practices.
Additionally, since 38% of shippers are working to reduce supply chain emissions, carriers that actively support sustainability efforts have a chance to stand out from the competition.
It’s a year of striking the right balance between resilience and sustainability, said Jenny Vander Zanden, Chief Operating Officer at Breakthrough.
“As economic pressures evolve, shippers are staying committed to their broader sustainability goals," she said. "Now they are focusing on adapting these strategies to build on the level of success they’ve seen so far.”
