📉 Freight Rates Are Volatile: How Shippers Are Responding to Soft Demand

Freight rates are volatile in 2025—and testing the resilience of shippers everywhere.

Between soft demand, tightening margins, and escalating operating costs, the freight market is
under pressure from all sides. National shippers, regional carriers, and 3PLs facing tough
contract renewals have no choice but to adapt to this level of volatility.
National Freight Connection is working with our partners to stay flexible, eliminate waste, and
protect profit margins in this turbulent market. Here’s how.

🚨 Why Are Freight Rates So Volatile Lately?

Freight pricing volatility is not random. It’s a response to several powerful trends converging at
once:
● Soft Demand: Consumer spending is still depressed, and freight volumes (particularly in
retail and manufacturing) have not yet fully recovered.
● Too Much Capacity: Carrier capacity is outpacing shipment volume in many lanes,
pushing rates down.
● Rising Operating Costs: Fuel, insurance, and regulatory compliance costs (especially in
California) are shrinking margins.
● Higher Customer Expectations: Shippers are being asked to deliver faster and cheaper
than ever before, thanks to the “Amazon effect.”
It’s an especially challenging balancing act: meet deadlines, slash costs, and maintain a high
level of customer service.

🔧 How Smart Shippers Are Adapting to Rate Volatility


The most successful freight operations are not standing still. They’re rethinking how they move
freight:
🚛 Optimizing Fleets
● Right-sizing fleets to match actual demand
● Investing in more fuel-efficient or electric vehicles
● Dynamic routing to minimize deadhead miles
📊 Leveraging Technology
● Rate tracking & forecasting tools for real-time visibility
● TMS automation to streamline administrative burden
● Live visibility for smarter load planning and faster response times

🌐 Rethinking Service Models
● Shifting to short-haul or regional lanes where possible to control costs
● Adding last-mile services or warehousing to improve revenue
● Exploring intermodal options to enhance price-to-performance
It’s all about finding flexible, scalable ways to move freight more efficiently, without sacrificing
speed or service levels.

💬 What the Experts Are Saying

“We’re seeing carriers get creative—from load consolidation to fuel optimization—to
stay profitable,”
– American Trucking Associations spokesperson
“Shippers are looking for logistics partners that can flex with the market, not just
quote low,”
– Logistics Analyst, SupplyChainIQ
That flexibility, paired with smart planning, is how companies are staying ahead.

⚖️ Are New Regulations Adding to Rate Uncertainty?


New policy shifts are also playing into rate dynamics, especially with regards to emissions rules:
● The recent rollback of California’s ACT rule by the federal government has created
confusion about compliance and where
● State-by-state regulations are making long-haul consistency a challenge
● Electric truck investments are being re-evaluated in light of regulatory uncertainty
It’s a mixed bag, to say the least. One that logistics teams have to monitor closely to avoid
costly mistakes.

🧭 What Rate Volatility Means for Shippers


The short version? It’s time to operate lean, smart, and forward-thinking. This means:
● Actively managing rates instead of just locking in a number
● Planning fleet & facility investments with flexibility in mind
● Meeting customer delivery expectations with smarter routing, not brute force
● Staying green wherever possible, but understanding the rules are changing

📦 How NFC Can Help Shippers Navigate Freight Volatility

At National Freight Connection, we are actively helping our partners navigate freight market
volatility with:
● Real-time pricing strategies to stay competitive
● Regional freight expertise to minimize transit times and costs
● Tech-powered transparency that makes planning easier
● Tailored services that scale with your needs, without bloated overhead
Whether you’re coping with tighter margins or re-evaluating your logistics footprint, we are here
to help you adapt, adjust, and thrive.

Let’s Build a More Resilient Freight Strategy


📞 Call / Email us today at (931) 200-5601 / NFC@nationalfreightconnection.com
📍 Visit our website to learn more about flexible service options for today’s market
🚛 Work with a freight provider that delivers more than capacity