TAKEAWAYS
SUSTAINABILITY FOCUS SHRINKING Despite public commitments to decarbonization and efficiency, U.S. logistics companies continue to view sustainability as a secondary concern, according to a new Tech.co survey of more than 1,500 professionals in the transportation and shipping sectors. From April through August 2025 (per data reported in October), just 7% to 11% of respondents identified sustainability as a top operational focus, placing it far behind priorities such as vehicle upkeep (19%–23%), financial pressures (16%–21%), and staffing (12%–26%). When logistics operators do invest in green initiatives, their decisions are closely tied to cost reduction and measurable ROI, the report notes. The most common sustainability practices are reducing idling time (43%) and optimizing delivery routes for fuel efficiency (40%), both of which directly reduce fuel costs. Sustainability is not a core consideration for the logistics sector at the moment, as it struggles to deal with a volatile year, the research shows. Instead, the investments of time and resources needed for progress in this area are being spent elsewhere. Policy reversals, such as the repeal of California’s Advanced Clean Fleets Act, have dampened enthusiasm for EV adoption and other long-term green initiatives, Tech.co notes.
WHAT’S IN STORE FOR THE FREIGHT MARKET?
Muted demand and cautious optimism define the outlook for Q4 2025, according to the latest TD Cowen/AFS Freight Index , which tracks truckload, LTL, and parcel rate trends using freight audit and payment data from $39 billion in annual transportation spend. The report shows carriers leaning on pricing discipline and operational efficiency to protect margins in what has become the third year of an extended freight downturn. While macroeconomic signals such as GDP growth and lower interest rates offer modest encouragement, capacity imbalances and trade policy shifts continue to limit recovery. The environment is one where “carriers are relying on hard-won lessons of the past to prioritize profitability and hang on in a soft environment,” says AFS Logistics CEO Andy Dyer. Key report highlights include: Parcel: Ground parcel rates are projected to climb 4.8% year over year (YOY), reaching 32.4% above the 2018 baseline as FedEx and UPS introduce new dimensional rounding rules and holiday surcharges. LTL: The rate-per-pound index is expected to hit 64.8% above 2018 levels, marking eight consecutive quarters of YOY growth as carriers maintain yield discipline despite lower shipment weights. Truckload: Rates remain sluggish, with Q4 index levels forecast at 6.1% above the 2018 baseline—virtually flat versus prior quarters—despite small upticks in economic activity.
FUNDING FRENZY?
Source: IL LinkedIn poll Should federal and state transport funds be directed to strengthen trucking and keep freight moving as the economy heats up? YES — Trucking is essential 62% MAYBE — Balanced with other needs 29% NO — Private sector should pay 9%
Logistics experts argue that government investment hasn’t kept pace with the growing importance of trucking to the U.S. economy. From training incentives to infrastructure and technology upgrades, the industry needs targeted support before capacity constraints slow recovery. In a recent Inbound Logistics LinkedIn poll, we asked our audience whether or not they believe it’s time to channel more infrastructure funds into trucking. The answer? A resounding yes.
November 2025 • Inbound Logistics 15
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