Transflo’s Guide to Thriving in a Volatile Freight Market

Meanwhile, carriers continue to face massive cost pressures, with the American Transportation Research Institute (ATRI) reporting that non-fuel operating costs reached a record high of $1.779 per mile in 2024, up 3.6% from the previous year. 

Adding complexity to an already challenging environment, tariff uncertainties are creating supply chain disruptions and inventory management challenges. Many shippers front-loaded goods earlier in the year to avoid potential tariff impacts, leading to artificial demand spikes followed by softer volumes. This may create a “short and soft” peak season. 

The stark reality is that freight carriers in 2025 must navigate a market where resilience, agility, and digital transformation are competitive advantages and potential keys to survival. 

In this guide, we’ll discuss the key challenges affecting carriers this year and how Transflo’s freight tech solutions can give your fleet the tools to flourish amid continued uncertainty. 

Financial pressure points:

• Truckload sector operating margin: -2.3% (ATRI 2025 report) 
• Average truck operating cost: $2.26 per mile (up from stable fuel costs masking rising other expenses) 
• Non-fuel operating costs: Record high $1.779 per mile (3.6% increase year-over-year) 

Market dynamics: 

• Empty miles: Average 16.7% as carriers struggle with inefficient routing 
• Truck capacity: Down 2.2% as carriers park vehicles and reduce fleets 
• Class 8 orders: Down 36% year-over-year to the lowest June levels since 2009 

These metrics paint a picture of an industry under stress, where traditional business models are being tested and only the most adaptable operations are maintaining profitability and stability.

1. Economic volatility and uncertain demand 

The challenge: Over half (56%) of transportation industry executives ranked macroeconomic uncertainty as their top concern in 2025, followed by geopolitical risks (50%) and environmental regulations (36%), according to the Transporeon Pulse Report. 

The freight market’s relationship with the broader economy has become increasingly complex. While GDP growth is forecasted at 2.2% for 2025, freight demand hasn’t followed historical patterns. Manufacturing PMI has fluctuated between expansion and contraction, and consumer spending patterns continue to favor services over goods, which reduces overall freight intensity and volumes. 

The tariff factor: With blanket tariffs on many countries and regions now in place as of Aug. 7, supply chains face continued uncertainty. This has already led to inventory pull-forwards and routing disruptions that create artificial peaks and valleys in demand. 

2. Crushing operating cost inflation 

The challenge: Smaller fleets have seen costs spike by as much as 30% over the past three years, with larger fleets also feeling the squeeze across multiple expense categories. 

Key cost drivers: 

• Truck and trailer payments: Up 8.3% to a record $0.39 per mile 
• Insurance premiums: Up 3.0% to $0.102 per mile (following a 12.5% spike in 2023) 
• Driver benefits: Up 4.8% to $0.197 per mile 
• Maintenance costs: Rising due to aging equipment and supply chain issues 

Average operating margins are below 2% in every sector except LTL, with many carriers operating at negative margins while trying to maintain market share. 

3. Technology adoption lagging in a digital-first world 

The challenge: Despite years of discussing digital transformation, the industry still significantly lags in technology adoption. According to the Transporeon Pulse Report, 54% of respondents expect a quarter or less of their processes to be automated by the end of 2025. 

A recent survey found that 16% of freight industry companies still rely on Excel spreadsheets and manual phone calls for core operations. Additionally, 61% operate with partially automated systems using disconnected solutions that create operational silos. 

This technology gap creates several problems: 

• Slower invoice processing leading to extended DSO 
• Manual errors in documentation and billing 
• Limited visibility into operations and performance 
• Inability to scale operations without proportional staff increases 

4. The productivity paradox: Do more with less 

The challenge: Carriers face the impossible equation of maintaining service levels while reducing costs and dealing with unpredictable freight volumes. 

Industry leaders are implementing tactics that reflect this pressure: 

• Extending equipment life cycles  
• Tightening maintenance schedules while reducing shop hours 
• Reducing non-driver staff by 6.8%, per ATRI data 
• Increasing truck utilization, with average annual mileage up to 82,677 miles 

5. Compliance complexity and regulatory evolution 

The challenge: Regulatory requirements continue to evolve, creating compliance complexity that drains resources from revenue-generating activities. 

2025 compliance focus areas include: 

• ELD mandate updates with stricter certification standards and expanded audits 
• Environmental regulations including revised CO2 emissions standards 
• English-language proficiency enforcement potentially impacting driver availability 
• Cross-border compliance requirements for Canadian operations 

6. Rising fraud and security risks 

The challenge: Fraudulent activities across the supply chain have become an epidemic. A report and survey from Transportation Intermediaries Association (TIA) in April stated that more than 1 out of 5 respondents (22%) lost $200,000 or more from fraud in the last six months. Furthermore, 83% of respondents said they encountered three or more different types of fraud during that period. 

Common fraud schemes include: 

• Double brokering  
• Rate confirmation alterations 
• Carrier identity fraud 
• Cargo theft  

And while many types of freight are under fire, the survey was nearly unanimous that truckload freight is the most frequent target, as 97% of respondents said it was the most targeted type. 

At Transflo, we’ve built solutions to support carriers in this kind of challenging environment. Whether you’re a large fleet managing thousands of vehicles or a small operation with just a few trucks, our integrated digital solutions help you reduce costs, streamline operations, and position your business for sustainable growth or in the most volatile market conditions. 

1. Accelerating cash flow with AI-powered automation 

Our Workflow AI solution directly addresses the cash flow challenges that are hurting carriers in today’s market. By automating critical back-office functions like invoicing, document management, and exception handling, Workflow AI cuts processing times and dramatically accelerates cash flow. 

Real results from real customers: 

“What used to take more than a week from delivery to invoice is now done in just 1-2 days. The no-touch indexing saves my team a ton of time, so we can use those resources in a more productive way. About 80% of our document processing is now automated, saving each biller about two hours per day.”  

– Breonda Ziegler, CFO, Hill Brothers Transportation 

Other Workflow AI for Carriers results from Hill Bros.: 

• Reduced invoice lag from 7+ days to 1-2 days 
• Saved 2+ hours per day per billing staff member 
• Eliminated manual data entry errors 
• Scale operations without adding staff 

As Lars Ward from Transflo explains, “In trucking, every day of delayed invoicing hits your bottom line. When you’re processing thousands of loads monthly, those delays add up to millions in delayed revenue recognition. Carriers using Workflow AI are scaling profit without scaling headcount—they’re increasing revenue and profitability through efficiency, not by adding more employees.” 

2. Enhancing operational agility through real-time insights 

In a volatile market, the ability to make informed decisions quickly can mean the difference between profit and loss. Transflo’s integrated telematics and ELD solutions provide complete visibility into your operations through: 

Advanced fleet management 

• Real-time GPS tracking with precise location data 
• Route optimization to reduce deadhead time and maximize efficiency 
• Driver performance monitoring including idle time, fuel consumption, and safety metrics 
• Predictive maintenance alerts to prevent costly breakdowns 

Optimization results 

• Reduce empty miles through better load planning and routing 
• Improve driver utilization with data-driven dispatching 
• Lower fuel costs through route optimization and driver coaching 
• Minimize vehicle downtime with predictive maintenance 

“Partnering with Transflo has been a game-changer for our trucking company. Their comprehensive suite of services, including telematics, electronic logbooks, dashcams, and GPS, has significantly enhanced our operations. The telematics system provides us with real-time tracking and data, helping us improve fleet efficiency and reduce costs.”  

– Martin Munoz, Safety Manager, F/X, a Redwood Logistics Company

 

The power of the everything app: Transflo Mobile+ 

Driver productivity and satisfaction directly impact your bottom line. Transflo Mobile+ has is the industry’s preferred driver app because it consolidates everything drivers need into one user-friendly platform. 

Core Mobile+ features: 

• Unlimited mobile scanning with automatic document processing 
• Load management workflows with real-time tracking 
• Two-way messaging for seamless communication 
• Electronic BOL/POD workflows with digital signatures 
• Hours of service integration for compliance monitoring 
• Navigation integration with CoPilot for truck-friendly routing 

Driver retention benefits: 

• Eliminate app fatigue with one consolidated platform 
• Reduce administrative burden on drivers 
• Improve communication between drivers and dispatch 
• Streamline compliance with automated logging 

3. Simplifying compliance in an evolving regulatory environment 

Transflo’s comprehensive compliance solutions help you stay ahead of evolving regulations while reducing administrative burdens. 

ELD and HOS compliance features include: 

• FMCSA-certified ELD solutions that exceed current requirements 
• Cross-border compliance with 100+ HOS rulesets for U.S. and Canada 
• Automated audit trails for DOT inspections 
• Driver assistance alerts for violation prevention 
• Real-time status updates for remaining driving hours 

As FMCSA and CVSA update certification standards, enforcement, and inspection protocols in 2025, Transflo customers are automatically protected with: 

• Continuous compliance updates as regulations evolve 
• Enhanced data accuracy requirements 
• Stricter audit capabilities for remote compliance reviews 
• Advanced tamper-resistance features 

Proactive safety through video and AI 

Beyond basic compliance, Transflo helps you build a culture of safety that reduces insurance costs and protects your business from accident liability. Our video telematics and AI-powered safety solutions provide comprehensive dash cam integration with real-time risk detection capabilities that alert drivers and fleet managers to potential hazards before incidents occur.  

The system continuously monitors driver behavior and provides coaching opportunities to improve performance, while automatically documenting any incidents for claims protection. Safety scores help you qualify for insurance discounts by demonstrating measurable improvements in fleet safety performance to your insurance providers. 

4. Fortifying security and fraud prevention 

Transflo’s secure digital ecosystem provides multiple layers of protection: 

Document security: 

• Blockchain-verified document integrity preventing alteration 
• Digital signature verification ensuring authenticity 
• Secure transmission protocols protecting sensitive data 
• Audit trails for complete transaction visibility 

Identity and transaction verification: 

• Carrier verification to prevent double brokering 
• Rate confirmation security with tamper detection 
• Payment fraud prevention through secure processing 
• Real-time fraud alerts for suspicious activities

Immediate impacts 

• Proven ROI within 60-90 days of implementation 
• Cash flow improvement through faster invoice processing 
• Cost reduction via automation and efficiency gains 
• Risk mitigation through compliance automation and fraud prevention 

Long-term partnership 

• Continuous innovation with regular platform updates and new features 
• Dedicated support that doesn’t stop after implementation  
• Industry expertise from a team that understands trucking operations 
• Scalable platform that grows with your business 

Competitive differentiation 

• Superior customer service through better visibility and communication 
• Lower operating costs enable more competitive pricing 
• Enhanced reliability through automated compliance and risk management 
• Growth capability without proportional cost increases 

While your competitors struggle with manual processes, cash flow challenges, and operational inefficiencies, you can leverage AI-powered automation, real-time intelligence, and integrated workflows to capture market share and build sustainable competitive advantages. 

2025 may bring continued uncertainty. But with Transflo as your technology partner, you can gain the resilience, agility, and visibility needed to not only sustain but thrive. 

The market rewards efficiency, reliability, and innovation. Transflo delivers all three. 

Don’t let another day of manual processes, limited visibility, and delayed cash flow hold your business back. The freight market won’t wait. Neither should you. 

Schedule a personalized demo to see how Workflow AI, telematics, and Mobile+ can transform your operations, accelerate cash flow, and deliver efficiency-boosting fleet insights.