Shift in Truckload Shipping Patterns: A New Era for Supply Chain Management
The average length of haul for truckloads has taken a dramatic turn, plummeting by nearly 8% year over year to start 2025. This stark contrast to the 7% increase seen just a few months prior has significant implications for supply chain management and carriers.
The Rise of Short-Haul Truckloads
A closer look at the data reveals that the shrinking load lengths are driven by a surge in demand for loads moving less than 100 miles, accompanied by a decline in demand for loads moving more than 450 miles. In fact, local truckload tenders (COTVI) have seen an impressive 20% annual growth rate throughout 2024, outpacing all other load lengths.
E-commerce: The Driving Force Behind Shorter Hauls
The growth of e-commerce is a key factor in this shift. Online shoppers expect fast delivery times, prompting companies to reduce the distance between distribution centers and consumers. While this doesn’t fully explain the decrease in load lengths, it’s clear that shorter hauls are becoming increasingly important.
The Impact on Long-Haul Truckloads and Intermodal Shipping
Meanwhile, long-haul truckload volumes (LOTVI) have dropped by 13% year over year, suggesting a trend beyond seasonal fluctuations. Intermodal rail demand, on the other hand, has seen a 6% increase compared to last year, with shippers turning to intermodal for West Coast shipments due to deteriorating truckload service.
Geopolitical Tensions and Inventory Management
Ongoing conflicts and geopolitical tensions are driving shippers to bring in inventory faster, reducing pressure on domestic shipping. This, in turn, has led to increased adoption of intermodal shipping, which is 7-10% cheaper than truckload but often comes with inconsistent service.
A Vulnerable Infrastructure
As intermodal shipping continues to grow, there’s growing pressure on the industry to perform. However, if the sense of urgency returns to domestic shipping, the current structure may struggle to adapt. With truckload capacity leaving at record levels, the industry may not be able to respond quickly enough to meet demand.
A New Era for Transportation Managers
In 2025, transportation managers face yet another risk to navigate. As the freight market continues to evolve, it’s essential to stay informed and adapt to changing trends. By understanding the shifting patterns in truckload shipping, managers can make informed decisions to optimize their supply chain and stay ahead of the curve.
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