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Why Transportation Strategy Can’t Be Static in a Volatile Market
Q From a COO’s perspective, what’s the biggest mistake leaders make when planning transportation strategy for the year ahead? A The biggest mistake is assuming the market will behave the way it did last year. Transportation planning is still often anchored to historical pricing, static forecasts, and the belief that volatility is temporary. But that’s no longer the environment we’re facing. In 2026, leaders face real forces that directly affect transportation outcomes: evolving trade policies and tariffs, persistent labor constraints, regulatory pressure, and uneven capacity recovery across modes and equipment types . When transportation strategy is built on last year’s conditions, it breaks the moment those forces shift. From an operational standpoint, the risk isn’t simply higher costs; it’s being locked into decisions that can’t adapt when the market inevitably moves. Q How do changes within the business itself complicate transportation decisions? A Transportation strategy doesn’t exist in isolation, it evolves with the business. New customers, changes in suppliers, shifts in production locations, or expansion into new markets all reshape freight patterns, often faster than organizations expect. What worked for one customer mix or supplier footprint may no longer apply as the business grows or changes.
COOs see this firsthand when legacy contracts, lane strategies, or carrier assumptions no longer align with how freight actually flows. Teams are then forced to manage around structural misalignment instead of executing efficiently. The challenge isn’t that the original strategy was flawed; it’s that it wasn’t designed to flex alongside business change. Q Why is it critical to rethink transportation strategy now, particularly given where contract and spot market dynamics are heading? A We’re entering a cycle where traditional contract and spot market relationships are becoming less predictable. Historically, contracts provided stability while the spot market absorbed volatility. As we move forward in 2026, those curves are increasingly compressing, with periods where spot rates undercut contract pricing, followed by rapid reversals when capacity tightens. When transportation strategy is overly rigid, organizations miss opportunities in soft markets and face heightened exposure when conditions shift. From a COO’s perspective, the goal isn’t to chase the lowest rate; it’s to build a balanced approach that protects the business across market cycles. Leaders who fail to rethink their transportation strategy now risk structural misalignment at the very moment volatility accelerates again.
Karen Orosco Chief Operating Officer RedStone Logistics solutions@redstonelogistics.com redstonelogistics.com 888-733-5030
52 Inbound Logistics • January 2026
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