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Embracing New Opportunities in a Dynamic Landscape
Aswe transition into 2025, a unique blend of eagerness and apprehension accompanies us. Significant transformations are disrupting established norms, from the emerging potential and accompanying risks of artificial intelligence (AI) to the upcoming NMFC changes.
Jump Start 2025 saw a record number of supply chain professionals come together to network and gain crucial insights into the future of supply chain and technology innovations. These exchanges allow us to better understand the future and develop insights that prepare us for successful outcomes.
This year’s event particularly emphasized future developments, examining new technologies and their influence on the supply chain. As always, informative summaries and significant takeaways can be found in this issue — from the state of LTL, AI’s growing role in supply chain, to key insights from leaders around the industry.
2025 will also see the incoming NMFC classification changes. These modifications will have a substantial
impact on freight rates and packaging methods. It is vital for shippers to take the initiative in assessing their commodity classifications, refining their packaging strategies, and utilizing data-driven tools to optimize their freight transportation spend. Be sure to read the Technology Insights in this issue for an in-depth look at the potential impact to shippers.
As SMC³ celebrates its 90th anniversary this year, one thing has remained constant – we remain dedicated to providing reliable, agile and innovative freight transportation solutions, providing superior educational opportunities for the betterment of the industry and to providing our customers with an unparalleled customer experience. ▪
ANDREW SLUSHER President & CEO | SMC³
Leadership
Session
Session
Session
Featuring Keynote Speaker Zack Kass
JUMP START OPENS WITH AN VIEW ON THE OPTIMISTIC
REVOLUTION
Looking back at Jump Start 2025
Artificial intelligence (AI) is undeniably the hot topic dominating conversations and planning in every sector. So, it was fitting that Jump Start 2025 kicked off with a keynote session focused on our evolving understanding of how AI will transform the shipping and logistics industry. Presented by OpenAI and go-to-market AI expert, Zack Kass, the address highlighted how the rapid advancement and decreasing cost of artificial intelligence is accelerating toward a future where unmetered access to intelligence is a reality, with AI seamlessly integrated into every facet of our lives.
“Unmetered intelligence” will drive a true industrial revolution
Kass described how the rapid advance of AI will define a true industrial revolution, as AI expands human potential and increases scientific breakthroughs. "What one person can do today will pale in comparison to what one person can do tomorrow," he said.
As AI advances and its applications expand, Kass predicted that the world will soon have access to fully integrated “unmetered intelligence,” comparing this to the unmetering of resources like water, food, electricity, and the internet. "Unmetered intelligence is the simple idea that at some point you will not have to pay for brilliance," he explained.
Historically, Kass noted, industrial revolutions have led to economic booms—and the AI revolution will be no different. Kass predicts we will see AI produce a "massive deflationary cycle," including lower costs for goods, services, healthcare, and education.
AI’s impact on shipping and logistics
Looking at how AI will reshape the shipping and logistics industry, Kass highlighted a few use cases that will increase efficiency and productivity. AI can already outperform humans in areas like optimizing routes and predicting demand, and will increasingly help companies optimize logistics operations, reduce costs, and improve delivery times.
Autonomous vehicles are the other AI-powered elephant in the room, with the potential to transform the long-haul trucking sector by addressing driver shortages and improving safety.
Kass added an even bolder vision, describing how progressively smarter AI agents will find new ways to add value for shipping and logistics operations—from predicting demand and optimizing routes to improving overall supply chain visibility. While the focus now is on how businesses choose to apply AI, the most valuable future use cases will come when “machines actually finally learn how we want to use them," highlighting the potential for AI to adapt to the specific needs of the shipping and logistics industry.
The phases of the AI revolution
Like the industrial revolutions before it, AI won’t transform the world overnight. Instead, Kass outlined three phases of the AI revolution:
1. The Enhance Application Phase:
This is the phase we are currently in, where AI is used to improve existing applications and increase productivity. "We used to have a bunch of apps on our phone that did pretty good work. Now, we have a bunch of apps on our phone that do great work, and we're basically getting about 30% productivity gain as a result," Kass explained.
2. The Autonomous Agent Phase:
In this phase, AI will be able to execute tasks and goals on our behalf, reducing our reliance on using apps directly. Kass cited OpenAI's Operator as an example of an agentive product that can perform tasks like booking travel.
3. The Natural Language Operating System Phase:
This phase will be marked by wearable personal computers and AI that understands how we want to use them. "Machines will actually finally learn how we want to use them," Kass stated.
Addressing AI concerns and risks
Kass did acknowledge that AI comes with risks and challenges—beginning with the most salient worry: that AI will take many (or even most) human jobs. He again pointed to past precedent, noting that industrial revolutions have historically been associated
"In a world where paradigms shift faster and faster, adaptability wins even more. Embrace adaptability as a strategy."
with job creation. Moreover, while the hype now is all about what AI can do, Kass stressed the need to think about the things that AI cannot do, such as creativity, empathy, and critical thinking. He believes that these uniquely human qualities will become increasingly valuable in an AI-driven world.
"AI is getting exceptionally good at intellectually computationally intensive tasks," Kass said. "But it turns out there are some obvious things it's not better than you at, and it is best explored when we actually study the physical space that we are in."
Adaptability will define success in the AI age
While the last decade has been defined by some massive changes in the business world, the AI age will completely upend any comfort in the status quo. This will make adaptability the defining factor of the most successful businesses. "In a world where par-
adigms shift faster and faster, adaptability wins even more. Embrace adaptability as a strategy," Kass said. Kass urged businesses and individuals to embrace a mindset of continuous learning and to focus on developing uniquely human qualities that will become increasingly valuable in an AI-driven world. "You must learn how to learn," Kass said. "The practice of learning at this point is probably the most interesting thing you can do in a world where you will have to learn more in your life than any humans have ever had to learn."
A call to address today’s most scarce resource: optimism
Having acknowledged the very real risks and the very reasonable anxieties about the impending AI revolution, Kass reiterated his strong belief that AI has the potential to massively improve the human experience and human outcome.
Realizing that potential, he said, depends on the beliefs and intentions of those leading AI innovation.
As he sees it, the greatest risk of AI is the potential for unintended consequences when tasks are assigned to AI without proper consideration of human values. Kass emphasized the importance of being aware of these challenges and actively participating in shaping a future where AI is used responsibly and ethically. "In a world where machines can do anything, how do we actually decide what we want them to do?" he asked the audience.
Driving that point home, Kass stressed that steering the AI revolution in the right direction depends on innovators with optimistic, positive intentions leading the way for the industry. "The single most scarce resource in the world right now is optimism," he said. "If you want to make the world a better place, be that source for someone else tomorrow." ▪
Leadership Series: In the Fast Lane with Chris Jamroz
Leading with Authenticity & Integrity in the LTL Industry
The conventional profile of a great leader involves strong convictions and clear direction. But how must great leadership evolve to fit a world that’s increasingly defined by constant change and frequent disruptive shifts? Chris Jamroz, CEO of Roadrunner Transportation Systems, took the stage at Jump Start 2025 to share how his unconventional background helped him bring fresh perspectives and innovative solutions to the table— and redefine the profile of a great leader.
A non-traditional path to success
Jamroz took a very non-traditional path to becoming a leader in the shipping and logistics industry. Born in Poland, he grew up amid Soviet-era restrictions and fled to Western Europe at the age of 15 to pursue a Western European education, which he described as "very evolved when compared to Eastern European school discipline and regimen" of the time.
The challenges and unexpected turns of his early life
instilled in him the importance of adaptability, resilience, and a deep understanding of the human experience. It shaped his leadership style, which he describes as focused on authenticity, integrity, and results.
"If you really want to be good at this," Jamroz explained, "you need to get to the point of being able to act with authenticity and integrity.”
The Roadrunner transformation
Jamroz eventually found his way to the United States, honing his leadership skills at various logistics companies, including Garda Logistics Cash, STG Logistics, and Emergent. When he joined Roadrunner four years ago as a restructuring specialist, he was tasked with turning around a company facing significant challenges. "Everything was deeply, deeply, deeply broken," Jamroz recalled.
Focusing on long-term value creation over shortterm gains, Jamroz led the transformation of Roadrunner, turning it into a leading LTL carrier. This included
Chris Jamroz
Executive Chairman of the Board & CEO
Roadrunner Transportation Systems
decisive actions to streamline operations, optimize the company's terminal network, and implement a rigorous process improvement program. He also focused on building a strong leadership team and empowering employees to take ownership and contribute to the company's success.
He credits this success to staying attuned to the "pulse" of the organization, making tough decisions with conviction, and fostering a culture of relentless improvement.
Building competitive advantage through focus
Focus is a key theme of Roadrunner's resurgence. Jamroz said the company identified two unique strategic pillars that defined its business—and doubled down on making these their core competitive advantages:
• Direct metro-to-metro LTL: By focusing on this niche, Roadrunner streamlines operations, minimizes touchpoints, and delivers faster, more reliable service. Roadrunner bypasses the traditional hub-and-spoke model, reducing transit times and minimizing the risk of damage or loss. As Jamroz put it, "If you remove different triggers, different potential points of failure, you come up with a better solution.”
• The independent contractor model: Roadrunner leverages independent contractors as drivers, creating critical accountability that aligns interests. "They do a good job—we pay them a lot. They don't do a good job—you're not here tomorrow," Jamroz explained. This model fosters responsibility, performance, and a shared commitment to excellence.
Agility is key to sustainable growth
Looking ahead, Jamroz acknowledged the challenges facing the industry, including economic downturns and ongoing disruptions. However, he expressed confidence in Roadrunner's ability to navigate these challenges and continue its growth trajectory. "The biggest challenge ahead of us is creating sustainable organizations," Jamroz stated. "It's putting the right
"If you really want to be good at this, you need to get to the point of being able to act with authenticity and integrity.”
type of discipline, building the data-driven machine where organizations can last decades."
While he’s incredibly proud of Roadrunner’s turnaround and current success, Jamroz acknowledges the cyclical nature of the LTL industry and the need for constant adaptability. "The biggest challenge ahead of us is creating sustainable organizations," Jamroz said.
He closed by emphasizing that there is no room for LTL businesses to grow comfortable with the status quo; agility and adaptability are crucial for navigating the ever-changing industry landscape. Jamroz urged leaders to anticipate market shifts and proactively build agile strategies that create a foundation for sustainable growth. He stressed the importance of continuous learning, data-driven decision-making, and a willingness to embrace change.
"This is not something that you can put on cruise control," Jamroz cautioned. "You have to decide that you really want to make it. Are you serious about it, or are you just talking about it?" ▪
Rick DiMaio, Executive Vice President and chief supply chain officer at Ace Hardware, talked at Jump Start 2025 about the challenges facing the LTL industry. This was a fast-paced discussion, full of surprising, data-driven insights shared by one of the industry’s leaders.
Rick DiMaio has led the supply chain for Ace Hardware since 2022. For the last three years, DiMaio has overseen every phase of Ace Hardware’s supply chain needs, including inventory management, security, loss prevention, and safety. With 15 facilities, a nationwide network and private fleet of 150 trackers, and 2,000 trailers, he’s uniquely qualified to discuss the LTL industry, including forecasting freight demand, the impacts of tariffs, and what strategies the industry must adopt to stay ahead.
The state of the LTL market
The less-than-truckload (LTL) market has been in a constant state of flux since the pandemic. That’s pretty normal, explained DiMaio, who sees the downturn
caused by overstocking in 2021 and 2022 as part of a cycle that regularly happens—and one that might be about to change.
“We have had, over the history of LTL, two other times where we have been in a cycle like this,” DiMaio said. “In 2008 we went through a cycle like this. We also went through one from 2014 to 2018. Each of those cycles lasted anywhere from 18 to 24 months, which means we’re now coming out of the latest cycle.”
One of the key indicators that we may be headed out of the current downturn is that inventory-to-sales ratios are not coming in line with what we’ve seen in previous eras.
“We are now seeing about 14% of logistics managers believe that they’re overstocked. That’s normal,” DiMaio said. “If we really are coming out of this cycle, and if a brand new order for manufactured goods now activates the entire supply chain…we start to see PMIs really accelerate.”
Wage’s effect on freight
As supply chain inventory returns to normal levels, we will see freight movement increase—which will be ma-
Victoria Kickham Sr. Editor
DC Velocity
jorly driven by increased consumer spending. At 4%, wage growth is actually outstripping inflation’s 2.5%.
“I believe we’re about to activate 78 million households that have not been activated over the last four years,” DiMaio said.
With discretionary spending on the rise, retailers will increase orders and boost freight movement in the LTL sector.
How policy may affect LTL
With a new administration comes new policy shifts that can affect freight demand. This year has already had banner headlines in that area, including tariffs, infrastructure investments, and a shift from government to private sector spending. This shift may help drive private investment toward manufacturing and logistics as LTL freight volumes increase, and as companies are encouraged to build and distribute domestically.
That said, it’s not all roses. DiMaio also noted that tariffs and global trade instability could still impact supply chains.
“We know China’s 10%, which will take the base tariff there to 60%...Mexico, Canada…it’s all over the place,”
"GDP looks like it’s going to be stable. Unemployment is going to be stable. Core inflation is in check.”
DiMaio said. So while greater economic indicators suggest growth in 2025 and beyond, these risks could slow or disrupt LTL if not managed effectively.
Yet DiMaio sees 2025 as a chance for optimism. The normalizing of inventory cycles, growing consumer demands, and a renewed government investment in domestic manufacturing are signs things are turning around.
“Outlook overall is really great for LTL,” DiMaio said. “GDP looks like it’s going to be stable. Unemployment is going to be stable. Core inflation is in check.” ▪
Looking Back to Jump Start 2025
Leadership Series: In the Fast Lane with Grant Crawford
The Evolution of 3PL: Better Relationships to Weather the Changes
The final morning of Jump Start kicked off with an insightful conversation with Grant Crawford, vice president of LTL at Total Quality Logistics (TQL). Crawford gave his insights on the evolution of 3PLs, describing a sector where adaptability and efficiency are increasingly shaping success.
Moving past contention: 3PLs and carriers
Crawford began his remarks by noting that the previously contentious relationship between carriers and 3PLs had changed considerably over the course of his years in the business. While heated competition once defined their relationship, now partnership and collaboration are at the forefront. By working together, Crawford stated, carriers and 3PLs are finding new opportunities to win: in improving service, optimizing costs, and adjusting to changing market conditions.
“Those of us that have been doing this a long time have seen one heck of a change,” said Crawford. “The thought of being together at a conference for four days—3PLs and carriers—wasn't even feasible. We
weren't just competitors. We did not like each other.” By working together, Crawford emphasized, carriers and 3PLs can play to their respective strengths, circumventing operational challenges and collectively generating more business.
3PL Challenges and the tech advantage
Crawford spent time considering the major challenges that 3PLs face. The industry has shrunk considerably, almost by a third since 2021. For smaller or medium-sized 3PLs, this means it’s mostly a fight for survival. Larger 3PLs, on the other hand, are trying to think strategically about what value propositions they can offer the customer to stay competitive, such as technology.
“The small guys, frankly, struggle to stay in business,” said Crawford. “And for big guys, the struggle is to stay ahead of the guy that's right behind you, chasing you.”
In this respect, for larger 3PLs, technological innovation is the biggest opportunity to gain a competitive advantage.
Crawford noted that TQL saved 2 million hours in
Grant Crawford
Vice President – LTL
Total
Quality Logistics
Mario HArik CEO |
Leadership Series: In the Fast Lane with
Mario Harik is the CEO of XPO, where he has spent the last 13 years in various roles. His philosophy on building a business is simple. There are three key investments: terminals, technology, and people. So how do these relate to service? It’s not as complicated as you think.
“One of our north stars is to provide great service for our customers,” Harik said. “We want every customer to know when you ship with our company we’re going to pick your freight up on time, deliver it on time, and deliver it damage-free.”
While this might seem obvious from a C-suite point of view, part of Harik’s unique approach means communicating that service promise to everyone who works for the organization, not just those in leadership roles. That means listening too. Mario personally has over 1,000 drivers’ phone numbers and regularly reads employee feedback.
“When drivers feel valued and heard, their performance improves significantly,” Harik said. “I usually do [an update] for our entire organization every six weeks where we talk about the progress we’re making on service improvements.”
Service-linked compensation and incentives for service quality
One area that has helped Harik in meeting those goals is the implementation of performance-based compensation that’s tied to service quality. There are now direct financial incentives in place for dock supervisors and teams to meet service standards through their “Gladiator Program for Operational Excellence.”
This program recognizes and rewards service centers for reducing damages. That can include monetary rewards for dock workers and drivers when these goals are reached.
“Whenever they hit a stretch goal of reducing damages and improving quality, the location gets a Gladiator medal… Every supervisor on the dock gets a spot bonus and the entire location gets a cookout for all employees, Harik said.”
How technology impacts service excellence
Harik pointed to the idea that technology can also make a big difference in meeting service quality goals. He referenced a new phone-based photographic loading inspection system as one of the key drivers for their improvements in this area.
“Whenever a supervisor closes the trailer door, they have to take a photo and rank the loading quality from 1-5 stars,” said Harik. “When the next service in line opens the trailer, they also take a photo and rank the quality of loading.”
Overall this has transformed their system, ensuring proper stacking, strapping, and safe freight handling while also fostering accountability across locations and improving operational efficiency. That’s not an accident, according to Harik.
“Overnight, we had the quality rating of more than a thousand supervisors and who’s doing a good job loading trailers,” said Harik. “We reduced damages by more than 80% in two years, from a 1.2% claims ratio to just 0.2%.”
The expansion of XPO’s infrastructure
The third piece of Harik’s plan is to build infrastructure ahead of the next freight upcycle. While some businesses are taking a wait-and-see approach to what 2025 may bring, Harik sees XPO’s proactive strategy as the best way to prepare for what’s around the corner.
In the last year, XPO has opened 25 new service centers, including a key acquisition of Yellow terminals in high-growth markets like Nashville, Atlanta, and Pennsylvania. They’ve also invested in rolling stock with 15,000 new trailers and over 5,000 trucks, making them one of the youngest fleets in the industry. It’s something that Harik sees as strategic positioning as increased freight demand begins to emerge in the next year.
“Nearshoring will shift more freight to LTL as companies move production back to the U.S.,” said Harik. “We currently have 30% excess capacity in our network. When demand increases, we will be ready to serve our customers.” ▪
The view from D.C.: staying ahead of macro changes in a rapidly shifting transportation industry
The transportation industry is in a state of flux. From economic uncertainty to shifting government policies, the macro picture of logistics is constantly changing.
At Jump Start 2025, Chris Burroughs, president and CEO of the Transportation Intermediaries Association (TIA), provided a candid look at the challenges facing the industry. In a conversation with Cathy Roberson, trade analyst at the Journal of Commerce, Burroughs discussed everything from the lingering effects of COVID to regulatory changes, fraud prevention, and the ongoing debate over broker transparency.
TIA is a trade association that represents the interests of 3PL logistics professionals on Capitol Hill. TIA has 2,000 member companies and is an important voice of advocacy for the transportation industry in D.C.
His message was clear: adaptability and vigilance
will be key to staying ahead in an industry where change is the only constant.
The COVID pivot point
Roberson first asked Burroughs to describe the state of the industry before and after COVID. He noted that, pre-COVID, the freight industry was stable, but the pandemic caused significant fluctuations. There was a surge in demand during the pandemic, followed by a freight recession.
The industry remains slumped, though there have been some recent signs of life. And while economic signs are improving slightly, 2025 is not expected by most economists to be a boom year.
Thinking on your feet with a new administration
Burroughs and Roberson spent some time discussing the changing of the guard in Washington—and
Leadership Series: In the Fast Lane with Chris Burroughs
Chris Burroughs President and CEO
Intermediaries Association
"From our perspective, we have to ask: is this the best use of the FMCSA's time? We have this massive fraud pandemic that's going on. 92% of trucking companies still don’t have a safety rating.”
how a second Trump presidency might affect the transportation community that Burroughs represents.
The general impression: though the president is something of a wild card, there’s a cautious optimism that the interests of his administration may be more aligned with business than with the previous administration.
That said, there’s a lingering sense of uncertainty. To what extent will the bureaucracy of D.C. constrain some of the current administration’s more audacious goals? How much will critical agencies like the Department of Transportation be influenced by the new administration? And how much substantive impact will proposed tariffs actually have on the supply chain—and to what extent are they mere saber-rattling for other policy goals on immigration?
Burroughs’ advice “Stay tuned. Be nimble. Be prepared—as much as you can be prepared,” he said.
Fraud: an existential threat
Fraud is underestimated within the transportation industry, with Burroughs noting that a conservative estimate of how much it costs each year is $1 billion. Fraud within the transportation industry is often un-
derestimated. According to Burroughs, it is conservatively estimated to cost $1 billion annually.
The two types of fraud are straight fraud—i.e., traditional cargo theft—and strategic theft. The latter is larger, but also subtler. It comprises double brokering schemes, identity theft, phishing attempts, etc.
“This is the number one issue facing our industry,” Burroughs warned.
While important, fraud isn’t a new problem. Burroughs stated that legislation was passed in 2012 to combat it: the Fighting Fraud and Transportation Act. But it hasn’t been properly enforced. From his position in TIA, Burroughs works to keep members of association abreast of the latest schemes while also advocating for more stringent enforcement of the laws already on the books. But it’s an uphill battle.
While new technology, including AI, can be helpful in vetting carriers to ensure they’re genuine, no comprehensive solution to fraud has yet emerged.
Ultimately, as Burroughs said, fraud is “an existential threat to our industry” because it hurts the delicate trust between shippers, carriers, and brokers, making it harder to retain those essential bonds of trust that make the industry functional.
Broker transparency concerns
Roberson raised the issue of broker transparency, but Burroughs argued it is overblown—comparing the 80,000 complaints the FMCSA has received in its consumer complaint database concerning fraud to the three received for broker transparency.
“From our perspective, we have to ask: is this the best use of the agency's time?” Burroughs said. “We have this massive fraud pandemic that's going on. 92% of trucking companies still don’t have a safety rating.”
Moving through the uncertainty
Burroughs’ insights painted a clear picture of an industry facing both challenges and opportunities. Fraud remains a critical issue, regulatory shifts bring uncertainty, and economic recovery is still unfolding.
As TIA continues to advocate on behalf of 3PLs, industry players must manage a tall order: continue to strengthen partnerships while leveraging emerging technology—all while remaining flexible in the face of unpredictable changes. ▪ Looking Back to Jump Start 2025
Our “In the Fast Lane” series continued with Jason Seidl, managing director, industrials – airfreight & surface transportation with TD Cowen. Seidl helped put into perspective where the freight economy is headed, market trends, and the potential future within the transportation and logistics industries.
The market shows signs of rebound
Seidl pointed to the idea that we’ve been in an extended market downturn since 2022. Seidl agreed with other market leaders who see signs that the market may be turning around. One of those signs is the Purchasing Managers’ Index (PMI). Its latest reading is 49.5, which indicates improving conditions from recent measurements. It signals that industrial production is stabilizing—almost always a positive sign for freight demand.
Additionally, surveys for railroad shippers and private carriers have shown 50 to 80-point improvements in their business growth expectations.
“Both [industries] jumped into the 60th percentile, saying they are more confident in the economy than before,” Seidl said.
This has corresponded with truckload contract rates, which have improved from 2-3% to an expected 3-5% as bid season progresses, marking a positive shift from 2023 when rates were often negative or flat. A gradual rise in contract rates suggests a rebalance of demand with available trucking capacity.
“We’re finally getting price increases in truckload,” Seidl said. “It’s nothing to write home about—yet, but it’s better than last year.”
The future of AI in logistics
The AI revolution is here for all industries, and logistics is no exception. Seidl is cautiously optimistic on how AI will be used in the coming years, but still sees the applications as emerging.
“It’s early,” Seidl said, “but automation is going to be a big deal.”
Seidl sees the most short-term opportunity for AI automation in areas that can reduce reliance on human labor—namely administrative, routing, and dispatching tasks. Some of these are already in use in
Jeff Berman
Group News Editor Peerless Media
many industries, like AI-powered chatbots for customer service and operational inquiries, while others, like automated freight matching, are already being used by J.B. Hunt, C.H. Robinson, and RXO to optimize freight allocation.
“The legacy brokers that leaned into technology will benefit in the long run,” Seidl said.
The evolution of supply chain awareness
The health and status of supply chains post-pandemic have gained increased awareness lately. The topics have even made their way into the boardroom, with most corporate leadership taking them into account, a marked change from pre-pandemic times when many corporate leaders lacked knowledge on supply chain logistics.
“Nine and a half out of ten CEOs now understand their supply chains,” Seidl said. “If you can’t understand your supply chain, you probably won’t be CEO for much longer.”
These days, CEOS are much more engaged in understanding freight flows, capacity, and logistics strategies they can utilize moving forward. That increased literacy spells good news for companies who will
"Nine and a half out of ten CEOs now understand their supply chains. If you can’t understand your supply chain, you probably won’t be CEO for much longer."
need to stay agile as supply chain opportunities present themselves.
In the end, there is a lot to be hopeful for: Gradual freight recovery is expected this year, truckload pricing is improving, and AI and automation will help reshape logistics into an even more efficient version of itself. While Seidl emphasizes he can’t predict the future, there are reasons to be cautiously optimistic.
“The economy is going to have to cooperate,” said Seidl. If we can do things that can spur the housing market…for every new home built, that requires seven truckloads.” ▪
A Global Economy in
Dr.Jeffrey Rosensweig, a renowned global economist, took the stage at Jump Start 2025 to de -
liver a deep dive into the forces shaping the global economy. Currently director of the John Robson Program for Business, Public Policy, and Government at Emory University, Rosensweig drew on his expertise in business strategy and international finance to analyze trends affecting growth, trade, and monetary policy.
His analysis: the current economy is a mixed bag of positive drivers and stalling forces. While certain economies are finding their footing, inflation and shifting trade alliances remain strong, destabilizing factors.
Managing inflation at the Federal Reserve
Rosensweig started by dissecting how the Federal Reserve has been handling interest rates. Since 2022, the Fed has raised them aggressively from near zero to over 5%. But, in an effort to cool inflation, the Fed has recently made three consecutive cuts. Yet, as Rosensweig pointed out, inflation is not declining as expected.
“We’re seeing inflation level off rather than continue its downward trajectory,” Rosensweig noted. “That’s got policymakers thinking twice about whether further cuts are on the table.”
The balancing act moving forward will be to stimulate economic activity without allowing inflation to creep back up.
A tour of the global economy
Rosensweig also spoke on global economic health. The U.S., which defied gloomy forecasts in 2024, will maintain moderate growth at around 2%. But not all nations are faring as well.
India continues to lead the pack among major economies, bolstered by a growing workforce and industrial expansion. Meanwhile, China’s slowdown is real, despite its government’s insistence on reporting 5% growth.
“No one trusts their numbers,” Rosensweig said. “The real figure is likely closer to 4%, and even that might be generous considering their banking and real estate crisis.”
Germany and parts of Europe are stuck in stagnation, with little sign of a near-term rebound. Mexico is emerging as a vital trade player, though the upcoming U.S.-Mexico-Canada Agreement (USMCA) renegotiations could cause turbulence.
China on the backfoot
Rosensweig also discussed the ongoing evolution of the global supply chain. Tariffs and geopolitical tensions have weakened China’s once-dominant position in U.S. trade. Companies are now looking for alternatives in Mexico, Canada, and Southeast Asia— particularly Vietnam, Thailand, and Malaysia. Another word for this strategy: “friend-shoring,” i.e., moving production to nations that are more politically aligned with the U.S.
But despite being on the backfoot, China remains formidable.
“There’s no question that they’re finding creative ways around tariffs,” Rosensweig observed. “Chinese firms are increasingly setting up shop in Mexico, assembling goods there, and exporting to the U.S. as ‘Made in Mexico.’”
Automation is inevitable
Political bluster around returning manufacturing jobs to America notwithstanding, Rosensweig was
Looking Back to Jump Start 2025
frank: automation, not reshoring, is the real story.
“For all the talk about bringing jobs back, what we’re actually seeing is a surge in robotics,” Rosensweig explained. “Factories are opening, sure, but they’re filled with machines, not people.”
Transitioning toward a service economy seems almost unstoppable. Transportation and warehousing boomed during the pandemic, owing to the e-commerce surge. But this progress has now plateaued. Meanwhile, healthcare, leisure, and hospitality are seeing the strongest job growth.
How long will consumer spending stay strong?
Strong consumer spending has driven American economic resilience. But with meager savings of 6%—as opposed to China’s 35% and Europe’s 15-20%—Rosensweig cast doubt on whether this spending could continue.
“We can’t keep spending like this forever,” he cautioned. “At some point, tightening credit conditions and higher borrowing costs will force a slowdown.”
Demographics are another concern. An aging population and declining birth rates are slowing down the expansion of the labor force, which could weigh down long-term growth.
“Our birth rate never rebounded after the 2008 financial crisis,” Rosensweig said. “Combine that with stricter immigration policies, and you’ve got a shrinking workforce that’s going to impact productivity.”
Is
this the end of globalization?
Rosensweig contemplated the possible end to the era of globalization. U.S. imports and exports have stagnated after decades of steady growth
“We’ve spent the last 50 years talking about globalization,” he said. “Now, for the first time, we’re seriously considering whether we’re moving in the opposite direction.”
Policy choices will affect whether the tide turns conclusively or not. Trade restrictions and tariffs could accelerate de-globalization. On the other hand, concerted diplomatic effort could also revive the dream of free trade.
“It’s a pivotal moment,” Rosensweig emphasized. “The decisions we make now will determine whether
we remain a major player in global trade or start turning inward.”
Adaptation
as the watchword
The U.S. economy remains resilient, Rosensweig emphasized—but shifting trade patterns, along with other factors, loom large as long-term challenges.
His advice? Stay flexible. Keep a close eye on trade policy. And don’t assume the economic landscape of the past decade will define the next.
“Things are changing fast,” Rosensweig concluded. “The key to success will be adapting just as quickly.” ▪
SMC3 NEW EMPLOYEES
Derek Cassady has joined SMC³ as data analyst II.
Damla Dayal has joined SMC³ as QA testing engineer II.
Adam McCurry has joined SMC³ as director of vertical sales.
New Employees and Changing Roles
SMC3 NEW EMPLOYEES
Amit Ramlakhan has joined SMC³ as enterprise system analyst.
James Watkins has joined SMC³ as QA testing engineer II.
SMC3 CHANGING ROLES
Olga Alexin has been promoted to sr. software engineer – CIS.
Robert Becht has been promoted to scrum master lead.
Stephen Brown has been promoted to QA testing engineer III.
Lorenzo Davis has been promoted to facilities team lead III.
Zoraida Fitzpatrick has been promoted to sr. facilities services supervisor.
Gregory Frazier has been promoted to sales support analyst II.
Isaiah Gillenwater has been promoted to sr. software engineer.
Eddie Harbin has been promoted to sales support analyst II.
Donna Hill has been promoted to sales support analyst II.
Jake Smith has been promoted to data analyst II.
The landscape of the less-than-truckload (LTL) industry is shifting rapidly, and companies are racing to seize the moment. With a surge in mergers and acquisitions (M&A), the sector is evolving, consolidating, and redefining its future. But what’s fueling this flurry of activity? And more importantly, how are companies ensuring these deals pay off?
At Jump Start 2025, industry leaders tackled these pressing questions, offering a behind-the-scenes look at the motivations, challenges, and strategies driving LTL’s biggest deals.
Why the interest in LTL M&A?
A growing number of acquisitions in the LTL sector reflect a strategic push toward expanding networks, increasing density, and strengthening financial resilience. Bill Cassidy, Senior Editor for the Journal of Commerce, led the discussion with Tim Haitz, chief commercial officer of Jack Cooper Freight, Adam Hess, CFO at Knight-Swift Transportation, and Char-
lie Prickett, president & CEO at AAA Cooper Transportation, a Knight-Swift subsidiary.
“We’ve seen an increased focus on LTL due to its durability through market cycles,” Hess noted. “Compared to truckload, which is highly cyclical, LTL provides a more stable income stream. That’s a big driver of valuations and acquisition interest.”
Knight-Swift’s recent acquisitions, including Dependable Highway Express (DHE), Midwest Motor Express (MME), and AAA Cooper, demonstrate how companies are looking to diversify operations while capitalizing on the efficiencies that LTL offers. Meanwhile, Standard Forwarding Freight’s recent restructuring and growth strategy underscores how new entrants see the sector as a path for expansion.
The ROI of LTL acquisitions
For companies making these moves, the return on investment (ROI) is about more than just acquiring assets—it’s about optimizing networks and achieving higher operational efficiency. Haitz shared how Stan-
Jump
Tim Haitz Chief Commercial Officer Standard Forwarding Freight
Andrew Hess Chief Financial Officer Knight-Swift Transportation
dard Forwarding Freight leveraged M&A to accelerate market entry:
“For us, acquisition was about getting into LTL. Instead of starting from scratch with no drivers, no terminals, no customers, and no technology, we acquired an established network, saving union jobs and creating a strong foundation for future growth.”
Prickett emphasized the role of network expansion in delivering long-term ROI: “LTL carriers typically expand gradually, but what we’ve done in the past three years is unprecedented. Instead of slow organic growth, we’ve dramatically increased coverage and infrastructure.”
Hess further explained the unique value of LTL synergies: “In truckload, synergies come from best practices and shared customers, but in LTL, it’s about leveraging density. By increasing scale, we can drive profitability much faster than in truckload.”
The challenge of integration
M&A success in LTL depends heavily on effective integration. As Hess pointed out, “We all know the devil’s in the details, but in LTL acquisitions, the devil’s in the integration. We’ve seen companies struggle post-merger when integration doesn’t go as planned.”
Prickett shared insights from Knight-Swift’s approach to bringing DHE, MME, and AAA Cooper together under one operational umbrella while preserving brand equity:
“When we acquired AAA Cooper, we never considered rebranding it as something else. We wanted to
Charlie Prickett CEO AAA Cooper Transportation
maintain the goodwill of legacy brands while integrating backend operations. That’s a delicate balance, but we believe it’s the right way to do M&A.”
From a practical standpoint, integration challenges often center around technology and workforce adaptation. Prickett described how Knight-Swift handled this transition:
“We implemented a complete technology overhaul— new desktops, laptops, servers, and phones—eliminating cybersecurity risks and streamlining operations. But the hardest part isn’t the technology,” Prickett said. “It’s people. Habits are tough to change, which is why mentorship and hands-on training are critical.”
What’s next for LTL M&A?
Looking ahead to 2025 and beyond, industry leaders expect more acquisition activity—particularly among regional carriers. Hess outlined Knight-Swift’s roadmap: “We’ve been clear about our national LTL strategy. We increased our door count by 30% last year, and our next priority is increasing density and expanding into the Northeast.”
Standard Forwarding Freight sees a similar opportunity. “Once we build our customer base in our current five-state footprint, we’ll look at acquiring carriers outside that region or expanding organically,” Haitz said.
Cassidy noted a broader industry prediction: “The LTL market, currently at $56 billion in revenue, is projected to reach $139 billion by 2030. That growth signals more deals ahead.” ▪
Asthe LTL industry continues to navigate economic shifts, technological advancements, and evolving shipper-carrier relationships, understanding the challenges and opportunities from the shipper’s perspective is critical.
This session provided a closer look into the most pressing topics shaping logistics today. The session featured insights from industry veterans, Nick Waters, director of logistics at Masco Corporation, and Kevin Huntsman, president, Mastio & Company, and moderated by Michelle Livingstone, founder and CEO, Livingstone Consulting.
State of LTL: What’s ahead for 2025?
As 2025 gets into gear, shippers are keeping a close eye on capacity, pricing, and innovation.
According to Waters, Masco’s recent sourcing event revealed that, while capacity remains available, shippers must remain proactive in securing reliable carrier partnerships before conditions tighten. Huntsman echoed this sentiment, emphasizing the value of nurturing relationships with a select group of high-quality carriers.
“Creating a collaborative relationship with your carrier is critical,” Huntsman noted. “It’s about trust and ensuring that when capacity tightens, you’re at the front of the line.”
Cost continues to be a primary decision-making factor—accounting for nearly 80% of shipper considerations. However, Huntsman pointed out that long-term success hinges on trust, service reliability, and strong sales and account management teams. “If pricing is the same across the board, the question becomes: Who do you want to do business with?” he added.
Shipper of choice: A long-term strategy
Becoming a preferred shipper is a continuous effort, not a reactive measure when the market tightens. Both panelists emphasized the importance of building strong, transparent partnerships with carriers to remain competitive.
Waters stressed the value of data-sharing
and early engagement. “We want to be a shipper of choice so that when capacity tightens, we’re prioritized. That starts with being proactive—sharing data, engaging in quarterly business reviews, and ensuring alignment well before contract renewals.”
Navigating the NMFC changes
A key focus of the session was the upcoming National Motor Freight Classification (NMFC) changes, which are expected to impact freight classification and pricing. Both Waters and Huntsman advised shippers to collaborate with their top carriers now to assess how these changes could affect their operations.
Speaking to the imminent shakeup, Waters offered that “there are a lot of changes coming. But it goes back to collaborating with your top carriers right away––have these candid discussions now. Start with your carriers, then build awareness within your organization that this change is coming.”
“Uncertainty breeds concern,” Huntsman acknowledged. “The key is open dialogue—shippers need to start conversations with their carriers to understand how their freight is currently classified and what changes they should anticipate. I think it’s a shortterm pain for a long-term gain.”
3PLs and the role of technology
The discussion also touched on the increasing role of third-party logistics providers (3PLs) in freight management. Waters noted that 3PLs were instrumental during the pandemic in providing capacity and expertise, particularly in areas like final-mile delivery.
Huntsman reinforced this, adding that as technology advances, 3PLs will continue to be a valuable resource for shippers navigating an increasingly complex logistics landscape. “As capacity tightens, it could become even more valuable where [they] can come into play,” he concluded.
The future of LTL M&A and industry consolidation
With continued M&A activity in the LTL sector, the panelists discussed how these shifts could affect shippers. While consolidation can bring efficiencies and expanded service networks, Waters stressed the
Looking back at Jump Start 2025
importance of understanding how new terminal expansions align with shipper needs.
“If a carrier acquires new terminal locations, how can we align our freight needs with those expansions? That level of collaboration is key,” he explained.
Adaptation and collaboration will define success
Both panelists underscored the importance of adaptability in an evolving industry. Whether it’s preparing for NMFC changes, strengthening shipper-carrier relationships, or leveraging technology, success in 2025 will depend on proactive planning and strategic partnerships.
“The industry is always changing, but the fundamentals remain the same,” Livingstone concluded. “Shippers that invest in relationships, data, and innovation will be best positioned for the future.” ▪
Kevin Huntsman President Mastio & Company
Nick Waters Director, Logistics Masco Corporation
It’s
no surprise: the political landscape has changed dramatically in the past few months, and will likely continue to change. The new administration brings new perspectives and priorities that logistics leaders must stay attuned to if they want to maintain a competitive edge.
Randy Mullett, founder and principal at Mullett Strategies, moderated a “Washington Buzz” discussion to give attendees an inside look at what’s on the horizon. The two speakers from BGR Group, William Crozer, co-head of state of Local Advocacy Practice, and Erskine Wells, president, brought a wealth of Washington insider knowledge to the session. In some cases, they had personally worked with recently appointed members of the Department of Transportation.
State-level shake ups
In addition to lobbying at the federal level, BGR Group has a robust state and local practice, which helps them integrate international and federal insights with community-specific shifts happening on a smaller scale.
“We are doing policy and political advocacy with the full spectrum of state and local officials,” Crozer said of BGR’s domain. “Governors down to mayors and county commissioners, and everywhere in between.”
This level of local insight may prove useful under a new administration that has signaled interest in abandoning a top-down regulatory approach in favor of block grants that shift more authority and influence to individual states.
The result? More disparate and partisan approaches to virtually everything. Crozer put it bluntly: “The influencers at the state and local level are obviously going to change―largely based on political parties.”
Accordingly, he advised logistics leaders who are curious about crucial infrastructure spending to keep a close eye on state legislatures.
“[State legislatures] are going to have a couple of big bites at the apple on some major policy items. They will be very active on all of these issues.”
A new Transportation Secretary
Wells expressed optimism regarding the new Transportation Secretary, Sean Duffy.
“Sean is a high-quality, high-character, high-integrity type of guy,” he said. “Based on my time working with him, I understand his values and how important family is to him and how important it is to work hard and do a good job. I think he's going to bring that with him to the White House.”
Regarding Duffy’s upcoming collaboration with the new President, Erskine projected a positive working
Co-Head of State of Local Advocacy Practice BGR Group
“We are doing policy and political advocacy with the full spectrum of state and local officials,” Crozer said of BGR’s domain. “Governors down to mayors and county commissioners, and everywhere in between.”
― William Crozer
relationship that centers on the President’s agenda.
“My expectation is that Sean and the President are going to look to spend the infrastructure money that's been appropriated by Congress. They're just going to do it on the projects that match with the President's priorities.”
Continuing efforts and new technology
In response to an audience question about the newly formed Office of Multimodal Freight, Wells seemed cautiously optimistic about its ability to implement positive change.
“It’s an opportunity to minimize friction points within our multimodal system. It’s an opportunity to get a product to market faster through our infrastructure and freight system. I would expect that to be something Secretary Duffy and the President are interested in.”
Responding to a question on AI, Crozer urged attendees to pay attention not only to federal movement on the issue, but to state and local action as well.
“I think a lot of people aren't focused on all of the activity that's happening in states,” he said. “A majority of states have stood up task forces to assess the implementation and utilization of AI, including around autonomous vehicles. They're looking for use cases. Ultimately, these states are going to be promulgating rules and regulations around the use of AI, the efficient use of AI, safety guidelines, etc.” ▪
Erskine Wells President BGR Group
William Crozer
Intoday’s business environment, 3PLs find themselves navigating a host of simultaneous changes. From changes in regulatory guidelines to the continued digitization of logistics and the acceleration of AI-powered technology, logistics leaders need to stay up to date on major shifts in the industry if they want to stay competitive.
Geoffrey Muessig, executive vp and chief marketing officer at PITT OHIO, moderated a panel designed to deliver these insights. Filling out the panel were three experienced logistics insiders with extensive knowledge of where the industry is today―and where it’s going tomorrow. Panel participants included Christina Carroll, vice president of LTL, C.H. Robinson, Chris Scheid, co-founder and chief strategy officer, MyCar-
rier, and Chase Smith, vice president of LTL and Parcel, MODE Global.
A changing rulebook
Upcoming changes at the National Motor Freight Traffic Association (NMFTA) were a major topic of conversation at the panel, with each panelist offering their perspective on how the changes will be felt in the industry. But everyone’s perspective shared an important commonality: the experience of the customer.
Carroll stressed the importance of “helping [customers] understand how it’s going to impact them― and in some cases, how to get it prioritized on their roadmap of necessary changes.”
Smith elaborated on this point, noting that custom-
SMC³
SMC3 in the News
Read more:
SMC³’s Next Generation LTL Carbon (CO2) Emissions Calculator Accelerates Sustainability and Standardizes Calculations for the Industry
SMC³, a leader in LTL freight transportation technology solutions, announced the launch of a new emissions calculator, available within its widely adopted activity-based costing technology, Cost Intelligence System (CIS). Designed to standardize Scope 3 emissions reporting for the LTL industry, the robust, user-friendly calculator automates carbon (CO2) data reporting and helps industry stakeholders more effectively track and achieve sustainable freight transportation goals.
Logistics Management
Read more:
Understanding Changes in Transportation Spend in 2025
Q&A with Brian Thompson, Chief Communication Officer, SMC³
SMC³
Freight’s Digital Shift
Listen here:
LTL pricing and operations are evolving fast, and SMC³’s Brian Thompson is at the center of it. In this episode of SemiRelated, host Chris Torrence and Brian break down two of the biggest shifts happening in the industry right now: the NMFTA’s proposed classification changes and the push for standardized APIs.
Journal of Commerce
Read more:
‘Green shoots’ in US economy fuel optimism, but not exuberance, among LTL carriers
Improvements in manufacturing, lower inventories and steady consumer demand are three factors that may point to a recovery of some LTL demand ahead of the second half of the year. Higher wage growth and lower inflation are two more.
ers may need guidance when it comes to “ensuring that the pricing provisions have been realigned to support the changes.”
Scheid highlighted the importance of being proactive. “Customers have engaged with us significantly on the new upcoming changes,” he said, “especially the small to mid-market shippers. They want to know: What can they do to be proactive? How can they address the handling of their freight―how they package it, reduce airspace, things like that―to get ahead of the change?”
Better collaboration and prioritization
As it is every year, the continued digitization of the logistics industry was an important touchpoint for all panel participants. Carroll pointed to its connective power within the industry, specifically in how it enables more (and better) collaboration.
“I do want to recognize the collaboration with our carrier partners,” she noted of C.H. Robinson’s digital strategy. “They've not only been critical in getting started and scaling, but also as we continue to add new capabilities. I do think a strong collaboration is part of what's needed to unlock our digital opportunities.”
Smith had a similar point of view but zoomed in on digitization’s impact on the customer. By automating and simplifying low-value tasks, digitization has the power to refocus 3PLs’ talent and resources on more high-value activities.
We're absolutely embracing any digitization that allows us to enhance the customer experience,” he said. “Ultimately, digitization should solve for things that are not needed from a customer or human interaction perspective. Creating a load or tracking a
shipment will not always be a high-value activity. Ultimately, we want the digitization to allow us to focus on high-value activity, whether that's business development, customer engagement, knowledge expansion, etc.”
Different approaches to AI
Artificial Intelligence (AI) came up in almost every session throughout Jump Start 2025, and this panel was no exception. But as each panelist dove into his or her perspective on AI, one thing became clear: There is no one-size-fits-all approach to this new technology.
“C.H. Robinson is at the forefront of innovation with Gen AI,” Carroll said of her firm. “Last year, it supported over 10,000 transactions per day for us. As far as use cases, we're focused on the shipment lifecycle and aspects that, up to this point, have not been able to be automated. AI has really enabled us to efficiently respond faster to our customers. This year and beyond, it's continuing to drive automation within the shipment life cycle.”
Smith zoomed in on a use-case for AI that was more focused on internal operations.
“We've been using AI to help inform our own business―really training the AI on financial data, sales training material, and the like to be able to bring that subject matter expertise to users when they need it, so they can engage internally, ask questions, and ultimately get to conclusions and answers quicker.”
Scheid had a similar perspective, noting how AI has boosted product development.
“Being a software company, we've looked at it very heavily from the shipper perspective. AI has been great internally―just to speed up the rate at which we can do software development.” ▪
Chase Smith VP – LTL and Parcel MODE Global
Chris Scheid Co-founder and CSO MyCarrier
Christina Carroll VP – LTL
C.H. Robinson
WELCOME NEW CARRIER MEMBERS
A
AG Freight
The mission at AG Freight is simple: to provide highquality services for their valued clients. The team goes above and beyond to cater to each customer’s specific needs. Through open communication and exceptional service, they hope you’ll find what you’re looking for with their freight company!
A
Atcheson’s Express
Atcheson’s Express began in 1988 serving Southern California. Today, the trucking company offers overnight and same day TL and LTL service to over 350 service points in Southern & Central California. They also offer service to and from Las Vegas and its surrounding cities. With a variety of equipment available to meet your unique needs, including 48 and 53 ft trailers, flat beds, stake beds and bobtails, including lift gate & air ride equipment available upon request. They offer HAZMAT & trade show transportation, and more- with computerized dispatch, GPS & Radio equipped trucks assure precise tracking of your freight. Atcheson’s Express Proudly delivering — Count on it!
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QX Logistix
QX Logistix supports many of the largest retail and ecommerce businesses in the country, holding themselves accountable to the highest standards and fulfilling the desired outcomes of their customers. Step into a world where your e-commerce reaches new peaks without the growing pains. Join hands with QX Logistix today and let’s scale up together!
SStoltzfus Truck Brokerage, Inc. (STBI)
Passionate about trucks and the people that understand their importance. STBI’s goal is to treat those in the transportation business, their owner operators, employees, and customers in the same way they would wish to be treated. Their highest aim is to integrate Biblical values of honesty, integrity, reliability, and stewardship into the food transportation industry. They hope that after decades of service to be known as the transport company that says what it can do and does what it says.
Jump Start 2025 General Session Recap
Navigating the AI Highway: Carrier and 3PL Perspectives
Inthe past few years, artificial intelligence (AI) has gone from a tech curiosity to one of the most closely followed developments on the global stage. In the business world, leaders from every industry are looking to stay competitive by finding optimal ways of leveraging AI within their operations. Logistics is not exempt from this trend.
George Lauriat, editor-in-chief at the American Journal of Transportation, moderated a panel of industry leaders, and picked their brains on the role of AI in logistics today. They discussed how it’s currently being used, how it will be used in the future, and how leaders can drive maximum ROI while also being responsible AI stewards. Industry experts on stage included Stephanie Bixler, chief product officer at eShipping, Megan Orth, senior director of commer-
cial connectivity at C.H. Robinson, and Bill Ward Jr., president and CEO at Ward Transport and Logistics.
Where AI stands today
Panelists brought three different perspectives to the table, but they all shared the opinion that AI has massive potential throughout the logistics space. Ward noted that his team has embraced AI as a powerful tool for optimizing core decision-making―all while accelerating the speed at which his team can work.
“One of the big ways that we use AI is route planning,” Ward said of his team’s approach. “We use predictive AI to help with route planning, which means that our planners are spending 70% less time planning those daily routes. That way, they’re spending less time behind a computer and more time out on the dock, leading their teams.”
NEW CARRIER & ASSOCIATE MEMBERS
Adient US
Plymouth, MI | Associate
Acuity Brands Lighting Atlanta, GA | Associate
Affordable Seating Chicago, IL | Associate
AG Freight
Piedmont, SC | Carrier
Allen Distribution
Carlisle, PA | Associate
Asahi Kasei Plastics North America
Fowlerville, MI | Associate
ASM Group
Minneapolis, MN | Associate
Associated Materials
Cuyahoga, OH | Associate
Atcheson's Express
Ontario, CA | Carrier
Bennett International Group
McDonough, GA | Associate
Blue Yonder
(fka JDA - i2 Technologies)
Markham, ON | Associate
Brewers Supply Group
Shakopee, MN | Associate
ChemTreat
Glen Allen, VA | Associate
Cumberland Packing Corp
Brooklyn, NY | Associate
D & H Distributing Co
Harrisburg, PA | Associate
Diginetics
Salt Lake City, UT | Associate
eFreight Logistics
Santa Fe Springs, CA | Associate
EmergeTech
Scottsdale, AZ | Associate
Fountain City Logistics
Overland Park, KS | Associate
Freight Pricing Strategies
d/b/a SORS
Fort Smith, AR | Associate
Gebrüder Weiss
Wood Dale, IL | Associate
GreatFreightRates.com
Nashville, TN | Associate
Greenline Logistics
Memphis, TN | Associate
Hobart Brothers Troy, OH | Associate
Honeywell International Charlotte, NC | Associate
Hormel Foods Corporate Services
Austin, MN | Associate
House-Autry Mills
Four Oaks, NC | Associate
ICAT Logistics
Elkridge, MD | Associate
Illumina
San Diego, CA | Associate
Kaizen Softworks
Boston, MA | Associate
Kopf Logistics Group
Elkhart, IN | Associate
Lubrizol Corporation
Wickliffe, OH | Associate
Mastery Logistics Systems
Chicago, IL | Associate
Method Industries Pty
Northcote, Victoria | Associate
“One of the big ways that we use AI is route planning. We use predictive AI to help with route planning, which means that our planners are spending 70% less time planning those daily routes. That way, they’re spending less time behind a computer and more time out on the dock, leading their teams.” ― Bill Ward
Orth and Bixler both homed in on AI’s ability to turn a mountain of logistics data into actionable insights.
“The problem we went out to solve was the concept of unstructured data,” said Orth, noting that their employees field a massive amount of data every day. “We've been focusing on the shipment life cycle― from quote to tender to tracking to appointments. We've looked at how to get from that unstructured data to more of a structured digital footprint.”
Bixler added to the data point: “Part of what we've been doing with AI and LLMs―we take [transportation] data, normalize it, standardize it, and transform it in a way that allows us to then help our customers understand their optimal distribution points, where to best co-locate inventory to avoid split shipments, and how to actually make shipping more efficient.”
An ethical approach to emerging tech
Of course, a major AI issue on many people’s minds is the ethical use of this new technology. How can logistics professionals make sure they're using it in a way that supports positive net effects for customers and employees?
Bixler noted the importance of including your workforce as an active party in the process of AI adoption, as opposed to simply enforcing its use.
“I think an important element of ethical, responsible use is making sure that you're bringing your workforce with you, training folks on how to upskill with AI,” Bixler said. “The important thing is not to leave people behind on that journey because, otherwise, they're going to see AI as a threat to their careers, their jobs, and their livelihoods.”
Orth seconded the point, noting that it’s important to emphasize the human element when it comes to leveraging AI.
“At C.H. Robinson, we call it the ‘human in the loop,’” Orth said of her company’s AI philosophy. “We really focus on the user experience, the workflow. It really changes the expectations of our employees and the work that they do. So we frame up AI use more as exception management, problem solving―skills that we'll need in the future―versus just step one, two, three, etc.”
AI today, AI tomorrow
Looking forward, the panelists saw many future applications for AI technology. Expanding on her “human in the loop” philosophy, Orth described an approach for easing AI into customer-facing functions.
“We're working on agentic workflows now,” Orth said of C.H. Robinson. “We’re asking how can we partner [with AI] over time and have these agents talk to each other? Then when that doesn't work right, then the 'human in the loop' comes into the picture. We're really looking at it from that standpoint. That allows you to be a little bit more intentional and thoughtful in terms of starting task-based and then gradually moving to low-level decision-making.”
Ward also saw long-term benefits for the administrative side of things. “AI can make it more seamless, reduce the pain points on our administrative teams. I could see a ton of benefit there.” ▪
Stephanie Bixler Chief Product Officer
eShipping
Megan Orth
Sr. Director Commercial Connectivity
C.H. Robinson
NEW CARRIER & ASSOCIATE MEMBERS
New Pig Corporation Tipton, PA | Associate
OLIMP Warehousing Chicago, IL | Associate
Pallet San Francisco, CA | Associate
Pegasus Logistics Group Coppell, TX | Associate
Progress Lighting Greenville, SC | Associate
PSP Distribution
d/b/a Pet Supplies Plus Livonia, MI | Associate
Bill Ward President & CEO
Ward Transport and Logistics
QX Logistix Vernon, CA | Carrier
RecVue
Palo Alto, CA | Associate
Reman Group Engines Houston, TX | Associate
Selig Group Forrest, IL | Associate
Siemens Energy Orlando, FL | Associate
Speedy Transport Group Brampton, ON | Carrier
Sterno Plano, TX | Associate
Stoltzfus Truck Brokerage (STBI) Kinzers, PA | Carrier
Summit Appliance Division, Felix Storch Bronx, NY | Associate
The Campbell's Company Camden, NJ | Associate
The Legacy Companies Paris, KY | Associate
Transport Logistics Wichita Falls, TX | Associate
Trident Transport LLC Chattanooga, TN | Associate
Varsity Brands
Farmers Branch, TX | Associate
Vibracoustic USA
South Haven, MI | Associate
Worthington Steel Columbus, OH | Associate
JumpStart2025GeneralSessionRecap
Top left: Keith Prather
Managing Director
Armada Corporate Intelligence
Top right: Kevin Huntsman
President
Mastio & Company
For the first time at the Jump Start 2025, SMC3 presented the State of LTL Report, an in-depth analysis of market conditions, economic trends, and shipper sentiment shaping the industry. The session, led by Keith Prather, managing director at Armada Corporate Intelligence, and Kevin Huntsman, president, Mastio & Company, laid out what LTL carriers can expect in the coming year and where growth opportunities may emerge.
"I do think we're coming into a brand new cycle in LTL," Prather said. "Whatever you've been doing the last two years, you're going to have to forget. We're going to have to dust off some playbooks from further back."
LTL's inventory cycle has finally stabilized
Prather opened with a look at the broader economic landscape, highlighting a critical shift: the LTL down cycle is finally over. The industry had been trapped in an extended inventory correction cycle, similar to those seen in 2006-2008 and 2014-2018.
During the pandemic, companies over ordered at unprecedented levels, leading to bloated inventories and stagnant freight movement. Now that cycle has stabilized back to normal levels, with only 14% of logistics managers still reporting excess inventory. As manufacturers work through their stock and begin placing new orders, supply chains will re-engage, leading to a much-needed rebound in freight volumes.
A consumer spending surge on the horizon
Another key factor set to impact LTL demand is a reawakening of consumer spending. For the past four years, inflation has disproportionately squeezed lower-income households, forcing them to cut back on discretionary purchases.
However, that may be about to change, due to the
rare economic recovery. "I’m going to make a bold prediction: we’re about to activate 78 million households that haven’t been active in the market," Prather said. Wage growth is now outpacing inflation, allowing these consumers to reenter the retail economy, particularly in sectors like apparel, electronics, and sporting goods.
Economic modeling shows no signs of a downturn in retail demand, with a particularly strong outlook for the second half of 2025.
Private investment will drive growth
Beyond consumer trends, a shift in economic policy could further support LTL growth. While government spending has fueled economic expansion in recent years, Prather noted that the new administration aims to transition more of that spending into private-sector investment.
"For LTL, that’s a fantastic trend," Prather said. "You do a lot better with non-residential fixed investment than with government spending."
Efforts to accelerate manufacturing and infrastructure investment—including permitting reform and reduced regulations—are expected to spur private-sector growth. This shift could increase LTL demand in industrial freight, which typically generates more stable, high-volume shipments.
Global risks still loom
Despite an optimistic outlook, geopolitical uncertainty remains present.
• Tariff negotiations with China, Mexico, and the EU could create volatility in global supply chains.
• The Red Sea shipping crisis has driven up transportation costs and increased oil prices.
Prather suggested that resolving the Red Sea disruptions could be a priority in the coming months. "If we can get that volatility out of the market, purchasing managers will be able to plan with more certainty, and that’s going to make a big difference for freight."
Shippers are choosing service over price
While the macroeconomic picture suggests a stronger 2025, how shippers perceive and select their carriers is also evolving.
Huntsman presented insights from Mastio & Company’s latest shipper survey, which has tracked LTL customer sentiment for two decades. Service quality—not just price—remains a dominant factor in shipper decision-making.
"Price is never the number one factor," Huntsman explained. "It's always a major consideration, but shippers ultimately choose carriers that make their jobs easier—those that are responsive, easy to do business with, and provide a reliable experience."
Competitive pricing has grown in importance but still ranks below on-time pickup, damage-free shipments, and trustworthiness.
How carriers are positioning themselves
The session also explored how carriers are perceived in the market. Many carriers have shifted into the high-cost provider category, according to shippers. Several high-profile carriers continue to lead in Net Promoter Scores (NPS), reflecting strong customer loyalty,
Huntsman emphasized that market positioning is fluid—carriers can improve over time, but those that neglect service may lose ground.
"Just because a carrier isn’t where they want to be today doesn’t mean they can’t change their position," he said.
Technology and efficiency are reshaping LTL
Shippers are also becoming more technology-driven, with adoption of transportation management systems (TMS) rising—especially among larger shippers.
• 75% of shippers are willing to adopt electronic Bills of Lading (eBOL) if it lowers costs.
“Price is never the number one factor. It's always a major consideration, but shippers ultimately choose carriers that make their jobs easier—those that are responsive, easy to do business with, and provide a reliable experience."
― Kevin Huntsman
• Sustainability remains a low priority, with only a small percentage citing it as a factor in carrier selection.
Cross-border freight is another area of opportunity. While 55% of surveyed shippers move freight between the U.S. and Canada, only 18% ship cross border with Mexico. Several U.S. carriers, including ABF and XPO, are expanding their Mexican operations, positioning themselves for future growth as nearshoring gains traction.
A
strong 2025 for LTL? The outlook is bright
Both presenters agreed that LTL is heading into a year of renewed strength.
With inventory cycles normalizing, consumer demand rebounding, and industrial investment accelerating, LTL carriers may finally see the kind of sustained growth that has eluded the sector in recent years.
"The economic signals we’re getting are really strong," Prather concluded. "2025 is shaping up to be a much better year for LTL, and it’s going to feel very different from the past two years." ▪
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Aswe enter 2025, a major challenge confronting the industry is the likelihood of shifting freight trends due to the relocation of production and manufacturing facilities worldwide, as companies strive to enhance cost-efficiency, manufacturing speed, and inventory management. Geopolitical conflicts and policy shifts, particularly the looming threats of elevated tariffs, are generating unpredictability and complicating the strategies of supply chain experts across various sectors. Shippers are evaluating how these factors might affect their logistics and contemplating whether to boost onshore inventory levels in anticipation of possible disruptions. Such developments could lead to abrupt changes in shipping behaviors, disrupting normal seasonal patterns and influencing capacity and pricing from transportation providers.
In the less-than-truckload (LTL) shipping segment, the most prominent upcoming challenge is the expected simplification to the NMFC classification system as more than 40% of commodities will have their class determined by a new, expanded density scale in July 2025. The impact on freight rates will vary, with potential increases or decreases determined on a shipment-by-shipment basis by the density. Shippers must conduct a detailed evaluation to grasp the implications for their transportation budget. Those without established processes for accurately determining package density or those who do not effectively manage their packaging processes may find themselves paying more for their LTL transportation.
The impact of these classification changes will vary depending on the current classification methodology used for each commodity, as well as how efficiently each shipment is individually packaged. This is because density will determine the newly assigned class of affected shipments.
Broadly speaking, the 2025 NMFC changes will have far-reaching implications for shippers and their business operations. Some of the key impacts include:
1. FREIGHT CLASS RECLASSIFICATION
Many commodities will likely experience changes in their freight classification due to the revised density scale and the transition of various items to the full density scale. Shippers must proactively review their commodity classifications to understand how these changes will impact their shipping costs and adjust their budgets accordingly.
2. RATE VOLATILITY
The NMFC updates may lead to fluctuations in freight rates, with some commodities experiencing rate reductions while others face potential increases. Shippers need to carefully analyze the potential impact on their transportation spend and develop strategies to mitigate any adverse effects.
3. PACKAGING OPTIMIZATION
The increased emphasis on density highlights the importance of efficient packaging practices. Shippers should evaluate their current packaging methods and explore opportunities to optimize package design and materials to minimize density-related costs.
4. DATA MANAGEMENT
Accurate data management will be crucial for navigating the NMFC changes. Shippers must ensure they have the necessary systems and processes in place to capture and analyze relevant data, such as commodity dimensions, weight, and density.
LTL Class Changes are Coming in 2025
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Use the densities of impacted commodities to determine the new class
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Shippers must proactively adapt and optimize their operations to maintain a competitive advantage in light of these NMFC changes. This includes focusing on enhancing their data management capabilities to gain real-time visibility and enable more reliable scenario planning, while seeking out smarter carrier collaboration opportunities. It’s imperative that shippers seek methods for collaborating with their carriers― who have access to data, information, and transit intelligence―to gain a deeper insight into how these changes in classification affect their operations. By working closely with their carrier partners, they can adjust to these changes in a manner that advantages both sides.
SMC³’s BatchMark® XL solution serves as a rapid batch rating tool, delivering comprehensive freight expenditure analytics to shippers, 3PLs, and carriers.
This tool allows users to create various scenarios and simulate adjustments to their freight characteristics, including alterations in shipment classifications. The high-speed batch rating feature of BatchMark XL enables them to efficiently calculate the implications for their LTL expenses across numerous shipments in mere minutes.
While we can anticipate certain challenges ahead in 2025, every year has the potential to bring with it unforeseen circumstances―challenges and opportunities alike. However, access to information and technology will set all industry participants the ability to react quickly and successfully meet any challenge ahead.
To learn more about how SMC³’s BatchMark XL solution can optimize your freight transportation spend, visit www.smc3.com. ▪
