Hopes for a 2025 rebound in the U.S. trucking sector are fading, with freight demand remaining soft for a third straight year, The Wall Street Journal reports.
Tariff uncertainty and bloated inventories are weighing on shipping volumes, even as the industry enters its typically busy season. Retailers and manufacturers continue to work through stockpiles built up ahead of tariff shifts, leaving warehouses full and freight needs flat.
The Cass Freight Index fell 4% in May, marking the 28th consecutive year-over-year decline. Meanwhile, the Logistics Managers’ Index shows storage costs rising as goods sit idle. Trucking rates continue to drop, with spot market prices down over 9% since January.
Manufacturing activity also dipped further into contraction territory. As a result, major carriers are scaling back investment, with Class 8 truck orders down 45% from a year ago. Industry analysts now say a recovery could still be many months away, forcing trucking firms to continue navigating one of the most prolonged slumps in recent memory.
