TGIF. Wondering what 2025 holds for freight brokers? DAT’s latest report reveals the top markets, rate trends, and how to stay ahead as the market rebounds.
Plus:
🏭 Major Manufacturing Hub
📉 J.B. Hunt Q4 Earnings Drop
🌱 Zero-Emissions Mandate Paused
& more...
Today's Newsletter is Brought to You By OTR Solutions.
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🐔 WHAT’S COOKIN’ IN FREIGHT
🚀 Ohio Secures $1 Billion Defense Hub, Adding 4,000 Jobs. Anduril Industries will establish Arsenal-1, a $1 billion, 5-million-square-foot manufacturing facility in Columbus, Ohio, creating over 4,000 jobs in the state’s largest job-creation project. Arsenal-1 will produce autonomous systems and weapons at scale. Located near Rickenbacker International Airport, the facility ensures swift delivery of components. Governor Mike DeWine praised the project, stating, “This investment not only strengthens our economy but cements Ohio’s legacy as a leader in aerospace and defense innovation.” With 500 acres for future expansion, Arsenal-1 represents a major step in modernizing defense manufacturing and rebuilding the “arsenal of democracy.”
📉 J.B. Hunt Reports Decline in Q4 2024 Earnings. J.B. Hunt announced a 5% YoY decreasein Q4 2024 revenue, totaling $3.15 billion. Earnings per share were $1.53, slightly below the consensus estimate of $1.62, influenced by a $16 million intangible asset impairment. Adjusted operating income declined 13% to $223 million. Its brokerage segment saw revenue decline 15.4% YoY to $308 million, with operating income dropping 61.4%. Dedicated Contract Services saw a 5% revenue decrease to $839 million, while operating income dropped 15% to $90.3 million.
🌎 California Drops Clean Trucks Mandate Amid Federal Uncertainty. California has withdrawn its request for an EPA waiver that would mandate zero-emissions big rigs, citing uncertainty under the incoming Trump administration. "The withdrawal is an important step given the uncertainty presented by the incoming administration that previously attacked California's programs to protect public health and the climate and has said it will continue to oppose those programs," CARB Chair Liane Randolph stated. Trucking industry opponents of the mandate have long asserted that the zero-emissions goals were too strict and ambitious, given the current lack of infrastructure and equipment to support such a change. Despite this, state regulators plan to advance emissions reduction goals through local measures already in place.
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DAT's 2025 Freight Outlook: What Freight Brokers Need to Know
DAT Freight & Analytics released its Freight Focus 2025outlook, offering insights pulled straight from the $1 trillion in market transactions that run through their system annually.
We sifted through the report summing up the points that matter most for your business. Let’s break it down:
Where was freight moving last year? DAT’s top markets reveal the hotspots:
Dry Van: Chicago, Dallas, and Los Angeles dominated, with Atlanta and Fort Worth not far behind.
Reefer: Fresno led the charge in temperature-controlled freight, followed by Chicago and LA. Philadelphia and Atlanta showed signs of heating up for 2025.
Flatbed: Houston stayed on top, with Fort Worth, Dallas, and Cleveland highlighting the demand for construction and industrial freight.
Market Recovery Ahead?
2024 was rough, but 2025 is looking up—or so DAT says.
Rate Rebound: Spot rates should start climbing by mid-year as capacity tightens, potentially closing the gap with contract rates.
Carrier Shakeout: Smaller carriers are struggling to hang on. High costs and lower rates have thinned the herd, giving larger carriers the upper hand.
Brokers should lock in strong carrier partnerships now to avoid getting squeezed when capacity gets tighter later this year.
Load Postings and Rate Insights
This chart illustrates the dramatic shifts in linehaul rates post-COVID. Spot market volatility peaked in 2021, followed by a steep decline as demand normalized.
The data reveals major shifts in load-to-truck ratios and rate trends that could shape 2025:
Load Postings: Flatbed and reefer postings showed significant drops in 2024, but Q4 hinted at stabilization. Dry van loads are expected to see a slow rebound starting Q1 2025.
Spot vs. Contract Rates: Contract rates are leading the recovery, with spot rates following close behind. DAT projects a more balanced market by mid-year.
What’s Next?
This is just the surface of DAT’s insights. For the full scoop on trends, tech, and strategies to stay ahead in 2025, check out their report.
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⚡ Tesla's Midwest EV Push. Tesla secures $100M from the Biden admin to build a Midwest electric truck charging corridor in Illinois, adding 345 ports across 14 sites.
🏛 Sexual Harassment. Wyoming trucking company Waller’s Trucking Company was ordered to pay $124K to settle allegations of workplace harassment, leading to the two women’s “forced resignation.”
📦 Import Restrictions. The US plans to limit low-value imports from China by having shippers electronically submit additional data on low-value goods before arrival. This will help customs target more high-risk shipments in the future.
🛠️ Bold DOT Vision. Trump’s DOT nominee Sean Duffy pledges to focus on infrastructure, starting with rebuilding I-40, along with CDLs for under-21 drivers and autonomous vehicle regulations.
👂Hearing Driver Exemptions. Sixteen hearing-impaired drivers received exemptions from FMCSA to remain on the road nationwide until December 2026. The decision is likely based on studies showing hearing impairment doesn't significantly increase crash risks.
🎣 THE FREIGHT CAVIAR CORNER
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I’m Adriana, a writer and editor at FreightCaviar. I’ve covered everything from freight tech to industry lawsuits and market shifts, helping scale us to almost 14K subscribers. My goal: to make logistics stories digestible, clear, and fun to read.
Hello! I'm Jerome FreightCaviar! I’m into the politics of freight and the impact it will have worldwide. I'm always eager to learn more. Follow me on X @JeromeFreightC
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