Flat Market? Volatile Market? Digital Freight Operations Adapt to Thrive

As 2025 draws to a close, truckload and less-than-truckload (LTL) freight market analysts are looking back at the trends of the past year, as well as predicting what 2026 will bring. Recently Redwood co-hosted a webinar called “Leveraging Technology for Operational Efficiency in the Truckload & LTL Ecosystem” that focused on just those issues.

The event was held in collaboration with AlixPartners, a global consulting firm with a dedicated practice area in shipping, logistics, and infrastructure.

Jeff Leppert, Redwood’s Executive Vice President for Modal Operations, was joined by fellow panelist Marc Iampieri, Partner, Managing Director, and Global Co-Leader for Logistics & Transportation at AlixPartners. The discussion was moderated by James Roe, Director at AlixPartners. Following is an overview of the discussion, but the event is also available to watch on-demand.

Is 2025 the Calm Before the (Rate) Storm?

Both panelists agreed that shippers and carriers have enjoyed a market of flat rates and relative stability for a long time — in fact, far longer than normal.

“If you look at market indicators like the DAT Dry Van Index, and the spread between spot rates and carrier rates, there’s very little movement in pricing today,” said Leppert. “And we’re actually on a three, almost four-year journey in terms of a lack of volatility. Historically, we should see more. And even now, we’re seeing very little market contraction — even though we’re in what we consider to be a peak season for truckload and LTL freight.”

However, both experts agree that the market’s next turn isn’t a question of if, but when truckload and LTL rates will begin to climb. Iampieri noted that, while flat rates are great for shippers, they’re not the best news for carriers — who have simultaneously seen their operating costs rise by over 30%, driven by fuel, labor, and insurance expenses. “Only the strong carriers are surviving right now,” he observed.

Those cost pressures are leading to capacity exiting the market, which is certain to affect rate stability in 2026. “We finally have the ingredients for a shift,” said Leppert. “The supply side is struggling to post a profit, and we’re seeing carrier exits from the industry. That pressure is going to build.” Iampieri added that trucking supply can contract very quickly — which will likely tighten capacity and finally push rates higher by the second half of 2026.

Advanced Technology Helps Shippers Weather Any Storm

While there’s no telling when a rate storm — or an actual weather event, new tariff, or geopolitical disruption — will affect freight demand, capacity, and pricing, Leppert and Iampieri believe that using advanced technology is imperative in thriving amid today’s ongoing uncertainty.

By using technology solutions like a transportation management system (TMS) to form closer, more collaborative relationships with carriers and other partners, shippers can not only increase their internal efficiencies, but also help carriers maximize their own cost-effectiveness.

Leppert and Iampieri emphasized that being a shipper of choice — one that communicates transparently, plans ahead, and leverages modern technology — is certain to drive down truckload and LTL freight costs. “If you’re known as a shipper of choice, you’ll pay less. If you’re known as difficult, you’ll pay more. It’s that simple,” Iampieri noted.

The webinar focused on five key shipper activities that can be dramatically improved via digitalization, driving greater efficiency for both carriers and shippers:

• RFPs and carrier selection. Truckload and LTL shippers who are still using manual processes and human analysis to create RFPs and select carriers are wasting time and money. Process automation, dynamic bidding platforms, and collaborative RFP workflows lead to faster awards, less manual effort, and more accurate pricing.
• Load tendering and acceptance. Shippers have huge volumes of data they can leverage to plan and tender loads well in advance — based on demand patterns, product seasonality, production volumes, and other factors. By using this data to plan ahead, they can give their transportation partners maximum advance notice. That enables carriers to also plan more effectively — lining up scarce labor resources, consolidating loads, optimizing routes, and eliminating empty miles. The end result? A lower freight cost.
• Shipment planning and documentation. By consolidating their shipments, using smarter loading strategies, and scheduling accurate appointments, truckload and LTL shippers can drive out costs, as well as minimize dwell times, delays, and penalties. All required documentation is automatically generated by today’s technology solutions, minimizing manual reporting demands.
• Shipment execution and visibility. Digitalization also means shipments are automatically executed and tracked in real time. When shippers and carriers are digitally integrated, carriers can provide real-time tracking, automated updates, and digital proof-of-delivery. And today’s intelligent solutions can not only predict obstacles in advance, like traffic or weather, but also autonomously course correct to keep shipments on time and on track. The benefits for both carriers and shippers are enormous.
• Freight invoicing, auditing, and payment. Forget emails and paperwork. Modern technology enables every administrative process to be digitized and automated. EDI connectivity and application programing interfaces (APIs) mean faster invoicing and payments, along with fewer errors. Both shippers and carriers can dramatically reduce the resources they need to support billing, invoice reconciliation, and other administrative tasks. 

Digitalization Is Within Your Reach. Why Wait?

Iampieri emphasized that, while advanced technology solutions like a TMS were previously only manageable and affordable for large enterprises with deep resources, today digitized freight operations are within the reach of every truckload and LTL shipper. He said technology providers have “democratized logistics” by introducing cloud-based, off-the-shelf tools that are accessible to even small and mid-sized shippers.

Whatever direction the freight market takes in 2026 and beyond, Leppert noted that shippers need to invest in advanced technology now to achieve agility, increased efficiency, and a competitive edge. “We’ve never been stronger in our ability to use data and technology to make strategic pricing and operational decisions,” stated Leppert. “The shippers and carriers who embrace that will be the ones who win the next cycle.”

If you need help understanding and leveraging the benefits of advanced technology in your truckload and LTL operations, reach out to Redwood. We’ve helped hundreds of shippers save costs and drive improved efficiency via more intelligent freight operations.