Trucking Market Rebounds, Insurance Costs Goes Up

Trucking Market Continues to Rebound, Even as Insurance Costs Rise

Nick Terry • August 29, 2024

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While Cass Information Systems (CIS) has reported a shipment decline of 1.1% year-on-year in July, there are a couple of good things to note in this weak freight market. One, the decline in July is the lowest in the previous 17 months, and two, despite the decline, there was an increase of 3% from June’s report. These two data points have prompted confidence in a rebounding market.

That said, it is not sunshine and rainbows yet. Operational expenses continue to be a problem for trucking firms, with a significant chunk of that being insurance costs. The high costs of insurance have pushed truckers to search for alternatives, which we will explore further in this edition of our monthly curation of the news and trends shaping the industry.

July Freight Data Shows Smallest Shipment Decline in 17 Months

Cass Information Systems' July freight data reveals a persistent decline in shipments but also highlights a reduction in expenditures. Although shipment volumes remain low, the report notes a 3% increase from June, with only a 1.1% year-over-year decrease. This marks the smallest year-over-year decline in 17 months, even as overall expenditures decrease compared to previous months.

Beyond informing us about the shipment volume and expenditures, the Cass report has also shown that pressure on for-hire trucks is easing as demand for shipping services rises and private fleets reduce capacity.

However, it wasn't all about shipments and expenditures. The truckload line haul index, which reflects the core line haul rates, saw a year-over-year decline, primarily due to overcapacity and competitive bidding.

As Insurance Costs Rise, Trucking Companies are Finding Alternatives

Insurance costs remain a major problem for trucking companies, which have seen a persistent increase due to inflation, labor costs, and larger court settlements. In response, these companies are investing in several strategies to offset the cost.

Here is what that looks like:

Investing in Technology: Many trucking companies are implementing advanced driver assistance systems, telematics, and cameras to enhance safety and potentially reduce insurance costs. Tech solutions track mileage, driver behavior, and other factors, helping optimize insurance costs to carrier performance.
Self-Insurance and Captives: Companies are coming together to explore self-insurance options because it allows them to gain more control over their insurance costs and risks.
Focus on Safety and Compliance: Smaller carriers prioritize safety and compliance to make their operations more attractive to insurers.
Adapting to New Risks: Trucking companies are adapting their insurance strategies to address the rising prevalence of alternative fuel vehicles and the increasing threat of nuclear verdicts by revising coverage needs and implementing specialized driver training.

As insurance costs continue to skyrocket, more trucking businesses and carriers will continue to adapt and find cheaper alternatives.

Freight Recession Continues to Impact the Top 100 Carriers

The prolonged freight recession has forced companies to survive on lower rates and tightly managed operational expenses while waiting for the market to rebound. Most trucks on the Top 100 For-Hire Carriers list reported lower revenue and profits in 2023 due to the reduced rates and increased shipper bargaining power.

The bankruptcy of Yellow Corp, a major LTL carrier ranked 13th last year, ultimately had ripple effects and reshaped the industry's competitive landscape. Despite the downturn, industry consolidation continued with several high-profile acquisitions, such as TFI International's purchase of Daseke and Ryder System's acquisition of Cardinal Logistics.

The updated list of the top 100 carriers for hire included new entries like Manitoulin Group and FirstFleet. The rankings are based on 2023 revenue, primarily from company surveys and financial reports, but companies now need to operate at least 500 commercial vehicles to qualify for the list.

What Would The De Minimis Demise Mean For Shippers?

The de minimis exemption is a U.S. trade law that allows duty and tax-free import of goods valued under $800. However, Chinese e-commerce companies like Temu and Shein have increasingly taken advantage of the ruling, enabling them to offer low-cost products to their customers in the US.

Despite this benefiting consumers in the US, the move has sparked concerns in the government about China's influence on the market, and de minimis could also make room for contrabands to enter the country unabated. The de minimis rule has evolved alongside e-commerce, shifting from a personal-use exemption to a critical business tool. It allows businesses to respond to consumer trends faster and effectively manage lean inventory.

However, increased government concerns could result in stricter customs screening or a lowered threshold, impacting these benefits. Although the government has not taken action yet, experts predict that some changes will be likely, but demand for international goods is also expected to remain strong.

Food and Snack Company Plans $1.2B Supply Chain Upgrade

Mondelēz International invests $1.2 billion in a multi-year project to transform its ERP system and supply chain. The major food and snack company aims to increase the efficiency and throughput of its operations through this move. The project is planned to be completed by 2028 but will involve collaboration with SAP, Accenture, and o9.

This move is similar to that of other food companies like Hershey, which also invests in ERP modernization to streamline operations and reduce costs in response to changing consumer spending habits.

Entourage Freight Solutions: Food-Grade Expertise for All Your Shipping Needs

Our roots run deep in food service logistics, and our expertise and track record speak for themselves. At Entourage Freight Solutions, we've built our reputation on handling perishable and sensitive shipments with the utmost care and precision. This dedication to service and attention to detail extends to every shipment we touch -- perishable or not.

We believe in total transparency. That is why we invest in tech solutions that track every shipment extensively, monitor every driver, and squeeze out every bit of efficiency without sacrificing quality. Our state-of-the-art platform uses cloud-based GPS tracking to keep you informed, reroutes shipments on the fly to avoid delays, and even reacts to real-time market changes to ensure you're getting your shipment on time and in full.

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, Cedar Rapids, and Romulus 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.

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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.