Logistics News Recap: Navigating the Freight Market As Tide Turns

Carriers Position Themselves to Take Advantage of the Changing Tide in Freight Market

Nick Terry • August 15, 2024

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As the trucking market seems to be past its bottom, carrier firms are becoming increasingly optimistic about the second half of the year — cue, the positive signs arising just before the peak season. With peak shipping demand expected to be right around the corner, the increase in demand and rates will possibly result in a profitable second half for carriers.

Carriers are now building capacity to meet challenges from a market experiencing increased demand. However, some of these businesses are still impaired from fighting a long market downturn, with high maintenance costs and long repair wait times leading to carrier exits. Some companies have suffered significant exits of their owner-operators. In this newsletter, we track this change, besides exploring stories highlighting the industry direction and how businesses prepare to take advantage of the evolving status quo.

The Logistics and Transportation Sector Welcomes Relief As Diesel Prices Dip

According to data released by the Energy Information Administration, the national average price of diesel has dipped 1.3 cents to $3.755 per gallon. The dip continues a four-week downward trend, which has resulted in a gallon of diesel costing 48.4 cents less than it did at this time last year.

According to the EIA’s weekly survey, prices dropped in all regions except the Midwest, which saw a slight increase of 0.2 cents. The Central Atlantic region experienced the largest decrease, at 3.7 cents.

Gasoline prices also fell, and the transportation and logistics sectors reacted positively to this news, especially because it provided some much-needed relief amid broader economic conditions. However, they remain sensitive to changes in global energy policies and supply chain factors.

As Demand Picks Up, Covenant Logistics Continues to Raise Rates

Covenant Logistics Group raised rates three times in 45 days after holding still for two years, signaling a pick-up in demand for the industry. The CEO's recent comments expressed optimism. "This is only the beginning," CEO David Parker said on a Q2 earnings call, pointing to increasing demand as the reason behind rising rates.

Parker expressed optimism over further increases, citing a sustained rise in demand since mid-May. However, his address was peppered with caution as well. "We don't have the momentum yet to go full-fledged and say, 'Roll out rate increases all over to every customer,' but we're looking at that," he contended.

Due to these rate hikes, the company's operating income rose 15% in Q2. Other truckload carriers are also hopeful for a freight rebound, with Knight-Swift Transportation Holdings closely watching for signs of a seasonal volume increase towards the end of the year.

Renewable Diesel Gains Attraction in The US Trucking Industry

Renewable diesel has sparked interest across the trucking industry due to perceived gains, such as reduced carbon emissions and lower maintenance costs than petroleum diesel. According to California's Low Carbon Fuel Standard Certified Carbon Intensities, renewable diesel reduces carbon intensity by 65% on average compared with petroleum diesel.

It can also help distributors and fleet users save up to two cents per mile and works well for existing diesel engines because it is a drop-in fuel, meaning that it can used on the engines without modifications.

While HVO is currently a prominent solution, the increased availability of renewable diesel and clean fuel programs enacted by various states is driving its adoption. A combination of solutions, including renewable fuels and electric power, will play a significant role in achieving substantial decarbonization in the trucking industry.

LandStar Loses 14% of Its Owner-Operator Headcount in Q2

As companies such as Covenant Logistics Group get excited about the pick-up in demand, others are struggling to retain their workforce due to the impact of the past downturn on logistics operations. And Landstar is a victim of this challenge.

Landstar's owner-operator headcount dropped 13.9% year over year to 8,385 last quarter due to increased repair costs and longer wait times. The company had hoped its declining headcount would bottom out last year after acknowledging many had been struggling to keep their trucks in service in the fall of 2022.

As the market shifts and demand increases, revenue per mile remains above pre-pandemic levels, which provides some optimism for the future. The number of owner-operators in the market is expected to continue falling but at a pace slower than before. Landstar believes rates will stay higher than before the pandemic because of increased operating costs.

Korber Purchases TMS Provider to Boost Its Supply Chain Solutions

Korber Supply Chain Software is acquiring MercuryGate International Inc., a TMS provider known for its capabilities in multimodal optimization and execution. Korber will leverage MercuryGate's system to strengthen its supply chain software business.

The move is strategic because it allows Korber to expand its capabilities to deliver a comprehensive and scalable supply chain execution portfolio. Following the acquisition, the company will offer solutions connecting inbound and outbound supply chain activities, improving cost efficiencies and customer experiences.

Additionally, Korber aims to establish a resilient supply chain platform with visibility across inventory pools, providing simulation capabilities to evaluate future strategies and understand return on investment. This acquisition responds to the evolving supply chain landscape and aims to address the challenge of balancing resilience and cost-effectiveness amidst disruptions.

Navigating the Freight Market With Entourage Freight Solutions

Entourage Freight Solutions stands out with its extensive background and expertise in food service logistics. Our unique approach, honed in the food supply chain, ensures an unmatched service level and extreme attention to detail in meeting all our shippers’ needs.

We can achieve a higher service level on all movements by approaching every shipment, whether shelf-stable or not, with the same care and consideration as the regulation-laden food supply chain industry. We also leave nothing to chance, tracking all legs of transportation and driver activity to maximize available capacity without sacrificing quality.

Our platforms use the latest cloud-based, GPS-enabled technologies. They can track drivers regardless of location, continuously reroute shipments based on the dynamics at play, such as weather or traffic, and account for real-time changes in market rates. At Entourage Freight Solutions, we offer a broad range of unsurpassed services. These include:

Full Truckload (FTL): For shipment requiring a dedicated whole truckload.
Less than truckload (LTL): For companies moving multiple LTL shipments to different locations or consolidating LTL goods from other companies to get a lower all-in rate.
Refrigerated Transportation: Leveraged to avoid spoilage and damage to temperature-sensitive goods.
Cross-Docking: With locations in Shelby, Ohio, Cedar Rapids, Iowa, and Romulus, Michigan, that serve as cross-docks for strategic consolidation, storage, and end-to-end distribution programs.

Request a quote today to see how Entourage Freight Solutions can help with your freight movement and other supply chain needs.

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Tariffs, Trade Policy, and the Great Freight Fallout

By Nick Terry • April 28, 2025

In 2025, trade policy is no longer something that the freight industry can leave on the back burner. Trade policy today is shaping strategy at every level. From tariff escalations and retaliatory duties to sweeping regulatory changes and targeted maritime fees, supply chain leaders are navigating a freight market in which unpredictability is the only constant. Sourcing decisions are shifting, pricing dynamics are unstable, and long-standing operational models are being rewritten in real time. This edition brings together key stories highlighting the growing pressure across logistics channels. Each development points to an industry moving fast, and often reactively, to keep pace with volatile policy decisions. Tariffs Stall US Freight Recovery as Shippers Pause Orders The recent move by the U.S. Trade Representative (USTR) to impose entrance fees on Chinese-built ships calling U.S. ports has only added to the confusion and uncertainty gripping global supply chains and freight operations. Shippers are pausing plans and slashing orders, with truckload volumes, containerized imports, and manufacturing output all showing signs of contraction. Ocean freight spot rates have collapsed: Asia-U.S. West Coast rates have fallen 61% since January to $2,050 per FEU, while East Coast rates have dropped 53.7% to $3,100 per FEU . Blank sailings are rising, with vessels leaving Asia half-empty. Amazon and Five Below are among the major retailers reducing orders from Asia. Container imports jumped 15.3% in 2024, but forecasts now predict a 20-27% decline through the summer. Exporters, particularly agriculture and forestry suppliers, are also squeezed, facing 125% retaliatory tariffs from China. Truckload and intermodal rates remain stagnant, while U.S. factory output fell sharply in March. US Apparel Importers Brace for Long-Term Volume Declines According to Trade Partnership Worldwide, a 124.1% tariff on Chinese clothing and footwear is expected to reduce U.S. apparel imports by 1.6% annually . China still accounts for 41.7% of apparel shipments, leaving limited flexibility for diversion. The American Apparel and Footwear Association (AAFA) is warning of price hikes and mounting infrastructure stress as sourcing pivots toward Vietnam, India, and Indonesia. A looming May 2 deadline for de minimis exemptions could further complicate flows and delay deliveries. Even with a temporary 90-day pause in reciprocal tariffs, the policy uncertainty already affects long-term planning. AAFA CEO Steve Lamar calls the shifting policies “chaotic,” and warned that high tariff pressure will hit both importers and U.S. manufacturers reliant on Chinese components. Port and rail capacity limitations at larger gateways are adding to concerns. Retailers now face rising costs, shrinking margins, and operational delays — all while consumer demand continues to shift rapidly. Freight Pricing Gains Lose Momentum According to the TD Cowen/AFS Freight Index, Q1 truckload rates rose 5.9% above the 2018 baseline, but are expected to decline slightly in Q2. Shippers are responding to tariff threats with aggressive front-loading and shorter-haul routes, driving per-shipment costs to three-year lows. LTL carriers remain focused on profitable lanes and high-quality freight rather than chasing volume. The index forecasts a 0.7% year-over-year increase in LTL rate per pound for Q2 , despite sustained demand softness and macro uncertainty. A key driver behind the softening spot market conditions is a shift to shorter hauls and regionalized distribution, pushing per-shipment costs to their lowest point in more than three years. This trend reflects how retailers and manufacturers are repositioning inventory in response to tariff volatility, as NRF’s Jonathan Gold and DAT analyst Dean Croke noted. Meanwhile, the LTL sector is seeing a 4% rise in fuel surcharges, offsetting lower weights and shorter hauls. With the freight market still under pressure after 26 months of contraction, optimism remains subdued as we enter the midyear period. US Truckload Freight Spot Rates Continue to Fluctuate National benchmark rates have experienced a decline across all categories. As of April 18, dry van decreased by 4 cents to $1.62, reefer by 2 cents to $1.88 , and flatbed by 3 cents to $2.16. This marked the first overall decrease since late January, signaling potential shifts in market dynamics. These changes can be attributed to factors such as tariff uncertainties and tighter capacity, especially affecting the flatbed market. Flatbed rates rely heavily on manufacturing activity in the country, which has been particularly hard-hit by the ongoing trade war with China, and to some extent, with the rest of the world. US Finalizes Tiered Fee Plan Targeting Chinese Ships The U.S. is moving forward with a revised plan to levy voyage-based fees on Chinese-owned and Chinese-built ships calling at American ports. The U.S. Trade Representative (USTR) announced the measure as part of a broader Trump administration effort to counter China’s dominance in shipbuilding and logistics while reigniting domestic ship construction and port infrastructure investment. Starting in six months, Chinese operators will be charged $50 per net ton, with an annual increase of $30 for three years . Non-Chinese carriers using Chinese-built vessels will face lower rates, beginning at $18 per ton or $120 per container, with annual increases. The USTR capped fee applications at five voyages per vessel annually, scaling back its original, more punitive per-port-call proposal after intense industry pushback. The fees are tied to findings from a USTR investigation, which concluded that China’s shipbuilding dominance — producing 29% of global fleet capacity and 70% of all container ships on order — stemmed from unfair trade practices. Exemptions apply to ships arriving empty, those in the Great Lakes or U.S. territories, and some bulk exports. LNG vessel transport restrictions will phase in over 22 years to support U.S. production. China’s largest container carrier, Cosco Shipping Lines, has sharply criticized the USTR’s plan. In a strongly worded statement, Cosco labeled the move as “discriminatory,” and warned it would disrupt global industrial and supply chain stability. Cosco denied allegations from that USTR investigation that claimed China manipulated its shipping and shipbuilding sectors to gain an unfair advantage. The carrier said it upholds “integrity, transparency, and compliance” in global competition and remains committed to ensuring the resilience of international trade. Walmart Investing $6B in Mexico, Central America Store Expansion Walmart of Mexico and Central America will invest $6 billion to open new stores across the region , reinforcing its long-term commitment to growth in Latin America. The expansion will include Bodega Aurrera, Walmart Supercenters, Sam’s Club, and Walmart Express formats, building on a robust network of 3,200 stores across all 32 Mexican states. This latest move echoes Walmart’s earlier $1.3 billion investment in 2016 for regional distribution and operational upgrades. The retailer entered the Mexican market in 1991 with a Sam’s Club in Mexico City. In a statement, Walmart said the new expansion reflects confidence in the region’s economic potential and consumer demand. Globally, Walmart continues to invest aggressively in infrastructure and store development. The company has pledged about $4.5 billion for its Canadian operations and $1.3 billion in Chile to build 70 new stores and a distribution center. In the U.S., Walmart is executing a five-year plan to build or convert more than 150 stores while modernizing 650 existing locations under its “Store of the Future” initiative. Experience Seamless Shipping with Entourage Freight Solutions Entourage Freight Solutions believes in total transparency in the shipping process. That is why we invest in tech solutions that track every shipment extensively, monitor every driver, and extract every bit of efficiency without sacrificing quality. Our state-of-the-art platform utilizes cloud-based GPS tracking to keep you informed, reroutes shipments on the fly to avoid delays, and even responds to real-time market changes to ensure you receive your shipment on time and as soon as possible. Our Services Full Truck Load (FTL): When you need a truck all to yourself. Less-Than-Truckload (LTL): Efficient solutions for multi-stop shipments or combining smaller loads to save on costs. Refrigerated Trucking: Keeping your temperature-sensitive products fresh and safe. Cross-Docking: Strategically located facilities in Shelby, Ohio, Cedar Rapids, Iowa, and Romulus, Michigan, for streamlined consolidation, storage, and distribution. Ready to experience a new level of service and control in your freight shipping? Request a quote today to see how Entourage Freight Solutions can help with your freight movement and other supply chain needs.