Show notes
In this episode, we kick things off by examining how artificial intelligence is dramatically reshaping freight forwarding economics. Listen in to learn how Flexport's freight volumes surged 40% while headcount grew only 5%, driven by AI tools deployed across customs, routing, and engineering. The company's ocean peak started early this year, fueled partly by massive tariff refunds following a Supreme Court ruling, while data center cargo now accounts for around 8% of global air freight capacity and is projected to triple next year.Next, we explore a sobering look at freight market history that reveals why each freight cycle over the past 25 years has differed dramatically from the last, making it nearly impossible to forecast when cycles begin and end. The post-Great Recession period set many expectations of what "normal" looks like, but COVID was the freight market's second black-swan event in just three years. Remarkably, rates were up 10% in September while volumes rose only 2%, which is hard to reconcile with weak demand.Finally, we cover a major truckload carrier's aggressive forecast as Covenant Logistics CEO David Parker expects double-digit contract rate hikes in 2027, driven by rising operating expenses, tightening driver capacity, and continued federal safety enforcement. Shippers resetting contracts in recent months are paying about 12.8% more than the rates they replaced, up from 4.1% during the same period last year. Parker also predicts regulators will eventually require third-party ELD certification, noting that 30% of trucks may be operating with manipulated hours-of-service records.Follow the FreightWaves Today PodcastOther FreightWaves ShowsLearn more about your ad choices. Visit megaphone.fm/adchoices
