As the new year kicks off, logistics movers and shakers evaluate where key metrics sit. What’s clear is that the industry is continuing to respond to disruptive trends, whether they be from lags in industrial production, the surge in inflation, or the rising prominence of automation technology. To stay ahead of today’s fast-moving landscape, explore these articles on the most pertinent shipping news developments of today.
Overall truckload rates will increase by more than 2%, and contract rates are set to rise by 5% year over year by the end of 2025, one economic forecaster contends. The outlook comes from FTR Transportation Intelligence, Transport Topics reported earlier this month. Although the growth is less than FTR anticipated even last fall — in part because carrier volume is still rebounding as industrial production lags — the firm’s vice president of trucking, Avery Vise, said the rate increase is “certainly welcome from a carrier perspective and certainly could be worse from a shipper perspective.” FTR also expects truck freight volume to rise by 1% this year, an improvement from its mere 0.2% growth in 2024. Within segments, refrigerated and flatbed volumes are slated to grow while dry van volumes should remain unchanged, just as weak short-haul and heavy-haul volumes are expected to linger in 2025.
The inflated price of food at the largest retailer in the country is unlikely to fall anytime soon in 2025, according to its CEO. Doug McMillon said he was “disappointed” with the current level of food price inflation — which rose 1% during the chain’s third quarter alone — at an industry conference last month, Grocery Dive reported. McMillon attributed the main culprits behind food inflation to eggs and milk, products he said will correct faster than dry groceries, but added the price of processed food items likely won’t drop much this year. Data from The Food Industry Association shows overall food-at-home prices surged 25% compared to before the pandemic, while the Consumer Price Index shows the price of groceries increased 1.1% from November 2023 to November 2024. That said, McMillon described Walmart as well-positioned to accommodate any drops in consumer spending due to the corporation’s competitive prices and strong inventory.
The head of a major supermarket chain anticipated it will capture $1.5 billion in savings over the next several years after automating a portion of its distribution volume in 2025. Vivek Sankaran, the CEO of Albertsons, told investors during an earnings call earlier this month that the grocery retailer has automated three of its 22 total distribution centers and has plans to automate at least three more, not to mention launch a new warehouse management system, by the end of the year. The moves, reported by Supply Chain Dive, should improve Albertsons’ in-stock conditions and data analytics capabilities, Sankaran said. The retailer doesn’t stand alone as other supermarket chains have begun investing in automation technology — Walmart, Giant Eagle, and Kroger among them — to grow their market share and delivery sales. Similar strategies, like partnerships with third-party pickup services, increased Albertsons’ third-quarter e-commerce sales to 7% of its total grocery revenue last year.
Icy weather has caused delays in lettuce harvesting, Mexican harvests have yet to stabilize the avocado pipeline, and most melon supply shortages persist, PROACT Crop, a fresh produce solutions company, reported during a January update. The report, from the company’s sourcing manager, Joey Piedimonte, was published online by The Produce News and highlighted that this month brought the coldest week of the winter growing season to the Arizona-California desert. Despite slower growth and defective outer layers causing lower case weights, the supply and quality of various lettuce strains remain in a good position. In the heightened avocado market, demand still exceeds a supply that’s expected to stabilize in February and especially after Super Bowl weekend. Likewise, supplies of cantaloupes and honeydews are limited; seedless watermelons are more available, offering a better produce option until the market turns less fragile in the spring.
A California-based company specializing in the sourcing and distribution of avocados, among other fruits, has positioned itself for a significant expansion into the global market. Mission Produce Inc. recently purchased the outstanding 50% interest in its joint venture into Grupo Arato, one of Peru’s largest avocado growing operations. The update, spotlighted by Yahoo Finance, was unveiled in a Mission Produce slide deck for its January investor presentation that showed the company has now developed 3,890 hectares of avocado orchards in Peru. The strategy comes as the supply chain leader moves to leverage its global “distribution capabilities to continue developing international markets” and “diversify sourcing to enhance our market-leading position.”
Although carriers and shippers may see improvements this year when it comes to rising truck freight volume, it remains crucial to have a trusted logistics partner to take advantage of positive changes. VCPB Transportation is a leader in the field, providing a range of expert solutions, including:
Start shipping with VCPB today to ensure your loads are shipped on time, at the right price, and without a worry.
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