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2025 Logistics Outlook: Cautious optimism tempered by tough realities

Logistics providers closed out 2024 dealing with flat business volumes, rising costs, increasing competition, excess truck capacity, and shippers demanding more value for their logistics dollar. Will 2025 provide a much-needed spark?

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Ocean shipping: The tide turns

In 2023, ocean shippers saw ample capacity and falling rates. This year, however, that trend has reversed due to labor disruption, geopolitical issues, and rising demand.

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A new outlook that’s a lot like the old outlook

Growth in the freight and logistics markets stalled in 2023 owing to overstocking, weak demand, and excess capacity. Expect more of the same in 2024.

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Choppy waters

Summer has been one for the history books as the market wrestled with UPS’ labor negotiations, FedEx’s restructuring, downshifting consumer spending, and slackening parcel demand.

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Market throws last-mile providers a change-up

The pandemic supercharged last-mile delivery as stuck-at-home consumers ordered everything from treadmills to computers and furniture for their homes. Now with COVID subsiding, pocketbooks thinner, and inflation rising, is last-mile growth hitting a wall?

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Adjusting to uncertainty

Unpredictable ocean-shipping rates and continued port congestion will make navigating peak season challenging for shippers.

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Bracing for changing seas

The maritime industry could see some major changes this upcoming year. IMO 2020, which governs ship emissions, will require significant investments in new fuel and/or technology. Meanwhile port expansion and upgrade efforts continue to boom across the United States.

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