The freight industry is confronting both infrastructure inefficiencies and shifting market forces as we move deeper into the second half of 2025. A new report highlights a $100 billion annual drain on the U.S. truckload sector caused by inadequate parking, underscoring how long-standing infrastructure gaps can inflate costs and strain carriers. 

At the same time, UPS is seeking to reshape its workforce through voluntary buyouts, while federal policy shifts — including a pause on visas for foreign truck drivers — are reshaping the labor supply in unexpected ways.

Tariffs remain a defining challenge. Companies are stockpiling goods in warehouses to avoid higher duties, temporarily muting consumer-facing inflation, while the ports of Los Angeles and Long Beach continue to process record volumes with stable dwell times. Meanwhile, uncertainty hangs over the truckload rate environment, with RXO projecting modest spot rate growth but warning of instability tied to excess capacity.

Technology, however, offers some optimism. Generative AI is gaining traction in transportation management systems (TMSs), with the promise of streamlining planning and uncovering new efficiencies. 

Together, these developments illustrate the complex interplay of cost pressures, regulatory shifts, and technological innovation shaping logistics strategies, as well as the importance of agility in navigating an uncertain trade and freight environment.

Parking Shortages Cost Trucking Industry $100B 

A new report by the Truck Parking Club and analyst Noel Perry estimates that inefficiencies caused by inadequate truck parking cost the U.S. truckload industry more than $100 billion annually. The study found that of the 23.4 million potential parking locations, only 638,000 are publicly available and legally suitable, meeting just 30% of daily demand.

This gap forces about 70% of truckers to rely on informal or unsafe parking. The inefficiencies include cutting trips short before hours-of-service limits are reached or traveling off route in search of available spaces. Rest stop “circuity” alone — averaging 15 extra miles for a third of stops — adds $37.7 billion annually.

Parking availability directly affects shippers, especially those relying on dedicated fleets. While some fleets strategically plan parking, most leave the burden on drivers. The Truck Parking Club, which operates a marketplace for connecting carriers with available spaces, has recently secured an investment from CAT Scale to expand its network.

UPS Expands Voluntary Buyouts to Operations Managers 

UPS is extending voluntary buyouts to select U.S. operations managers as part of its push to align staffing with lower parcel volumes, particularly from Amazon. Managers in small package operations can apply until September 9, with separations running through July 2026. 

Packages include cash payouts based on tenure, access to healthcare, and outplacement support. The offer follows UPS’ closure earlier this year of 74 facilities, which failed to generate the anticipated attrition. “Our attrition rate was lower than we anticipated, which resulted in higher expenses than we planned,” CEO Carol Tomé said. UPS is also offering buyouts to full-time drivers, with payouts starting at $10,000.

The strategy reflects broader logistics trends. The U.S. Postal Service recently saw nearly 10,500 employees accept voluntary early retirement, underscoring how carriers are turning to buyouts to trim labor costs while restructuring operations.

US Suspends Foreign Truck Driver Visas   

The Trump administration has halted the issuance of visas to foreign commercial truck drivers, citing concerns over safety and the economy. The decision follows a fatal crash in Florida involving an undocumented immigrant with a CDL from California and Washington. 

Transportation Secretary Sean Duffy said lax enforcement has allowed unqualified drivers to obtain licenses improperly. This latest move follows an April executive order requiring English proficiency for truckers, with inspectors now issuing out-of-service violations to drivers who fail roadside tests. 

The American Trucking Associations voiced support, calling for stricter oversight of non-domiciled CDLs and stronger training enforcement. California and Washington are among 19 states, plus the District of Columbia, that issue licenses to undocumented immigrants, raising questions about state versus federal authority in commercial driver regulation.

RXO Sees Spot Rate Growth Slowing, Market Tightening Ahead

Truckload spot rate growth slowed to 6.5% in Q2 from 9.1% in Q1, according to RXO’s The Curve report. While volumes remain muted, RXO said tightening capacity will eventually drive sharper increases. Persistent low rates are pushing owner-operators toward company driving jobs and threatening smaller carriers with exit, a shift that could trigger a future rate spike.

Analysts remain cautious. Craig Decker of Brown Gibbons Lang & Co. predicts no major recovery for at least two quarters due to excess capacity. TD Cowen’s Jason Seidl noted modest contract renewal gains but emphasized that “uncertainty” dominates the outlook. 

RXO pointed to 2014 as a possible benchmark for the next rate cycle, suggesting the peak could be lower than past recoveries.

Tariff Effects ‘Hiding in the Middle Mile’

Retailers front-loaded imports to blunt tariff increases, with goods now sitting in warehouses rather than pushing up consumer prices. Zachary Rogers of Colorado State University noted that tariff effects are “hiding in the middle mile.” While back-to-school apparel and toys are already more expensive, most consumer-facing inflation is expected to emerge when inventories clear in September and October.

C.H. Robinson’s Mike Short said companies are carrying heavier warehouse costs, elevating supply chain planning to “boardroom, C-level conversations.” Flexible warehousing providers, such as Flexe, report higher demand as importers buffer their Q4 inventory. 

Meanwhile, tariffs on Vietnam and India highlight shifting sourcing patterns as China diversifies its export routes. Gene Seroka of the Port of Los Angeles said August cargo volumes remain strong but are cushioned by earlier stockpiling. Analysts warn that once inventories flow through, consumers could face another wave of inflationary pressure.

Ports Handle Record Volumes Without Major Delays

Despite record July container volumes, the ports of LA and Long Beach maintained steady dwell times. Truck dwell averaged 2.87 days, nearly identical to July 2024, and rail dwell averaged 5.18 days, down from 5.66 days a year earlier.

The Pacific Merchant Shipping Association (PMSA) credited adequate trucking capacity and coordination among terminals, drayage providers, and cargo owners. “Even with unprecedented surges and shifting cargo patterns, San Pedro Bay terminals continue to demonstrate operational resilience,” PMSA’s Natasha Villa said.

The data supports Seroka’s claim earlier this year that the gateway has the capacity to handle surges, with fluidity ensured by Union Pacific and BNSF rail services that move about 60% of West Coast import containers.

Generative AI Gains Ground in TMSs

TMS providers are embracing generative AI as shippers and carriers seek greater visibility, automation, and efficiency. Oracle, Blue Yonder, and Uber Freight have all rolled out AI-driven tools since 2023, with adoption growing among large shippers.

A Deloitte survey conducted in late 2024 found that 75% of companies had at least one implementation of generative AI in their supply chain functions, while another 16% were piloting applications. Experts see near-limitless use cases, from uncovering cost savings to automating disruption response and optimizing transportation schedules.

“Technology advancements are coming fast and furious,” said enVista’s Britain Pavlic. JourneyTMS’ Chris Orban predicted a hybrid model in which AI generates data-driven recommendations while humans make final decisions, creating more adaptable supply chains.

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

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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.