With the freight market projected to remain turbulent, the following year could be a challenging period in trucking. Fleet executives recently noted in an industry event that, “It’s going to be a bumpy next 12 to 18 months.” While it doesn’t mean disastrous, “bumpy” means that it could be unpredictable, especially with the industry’s current issues. Trucking bankruptcies have grown over the last few years, with 2025 on its way to outpace 2024. August 2025 has also marked the 30th straight month of freight shipment decline. This article will explain the cause of the current challenges and how they may impact domestic shipping.
Why Could There Be A Challenging Period in Trucking?
Several challenges, such as the freight recession, have led to the current issues in the trucking industry. In 2022, the demand for carriers due to the coronavirus pandemic declined significantly. Concurrently, a record number of truckers entered the market in 2021 to meet the demand. As the need for domestic shipping began to fall, the number of carriers remained constant, leading to overcapacity. Spot rates soon began to drop, and company bankruptcies began, leading to the recession. Fast forward to 2025, and spot rates remained low with too many trucks chasing too little freight. Many mid-sized carrier companies have already filed for bankruptcy this year, with eight happening last month.
Another reason the trucking industry could face a rough period is the higher costs. In 2024-2025, prices for insurance, equipment, and driver pay reached record levels, with operating expenses rising over 5% each of the last three years. For a 10,000-mile month, that’s approximately 2,600 extra. President Trump’s tariffs have been a significant cause of rising expenses. Along with impacting international shipping, the tariffs have been felt in moving goods domestically, raising costs and creating uncertainty. Trump’s case going to the Supreme Court in a few months adds further vagueness in the industry. Shippers are tightening budgets and transporting less to cope with the rising costs.
What Can That Mean For Your Shipment?
Due to the projected timeline, shippers and carriers must prepare for what’s to come. Truckers may benefit from understanding critical information like the actual cost per mile and fuel-adjusted breakeven points. Constant maintenance, like brakes, tires, and other equipment, is necessary to prevent potential downtime. A domestic shipping company must constantly communicate with its drivers on what to expect during this period of uncertainty. This can include explaining their performance goals and giving them ideal lanes. Even a little downtime can lead to a significant monetary loss. Although the peak season potentially provides temporary relief, the long-term forecast remains unpredictable.
While the trucking industry may have a rough time ahead, it should not stop you from shipping domestically. The shipper should, however, take the proper steps to protect their cargo during the transport process. A way to protect your shipment is to speak to freight brokers like A1 Worldwide Logistics. Brokers are the middlemen between shippers and carriers and coordinate a shipment’s movement on behalf of the shipper. They do this by connecting to a network of carriers prepared to move your shipment. Brokers also offer other services like finding rates, providing paperwork, consultation, and more. Speak to our brokers at 786-375-9420 or info@a1wwl.com for a quote to move your cargo anywhere in the US.