2025 RESEARCH STUDY
Shippers pushed to move underutilized truckloads to meet growing demands for speed and agility.
Shippers pushed to move underutilized truckloads to meet growing demands for speed and agility.
Research Summary
Underutilization in truckloads increased from 43% in 2023 to 58% in 2024, presenting an even greater opportunity for shippers to turn unused truck space into efficiency gains.
2024 was characterized by deflationary market conditions, which kept shipping rates low. However, as we move into 2025, rates are expected to rise, though uncertainty remains about the extent of the increase due to new tariffs enacted in early 2025. Despite this uncertainty, 83% of shippers reported an increase in their transportation budgets from 2024 to 2025, with most experiencing a 1% to 10% increase (82%).
A recurring theme among shippers was the emphasis on timely delivery, which often leads to partially empty truckloads. Many shippers are adopting AI and new tracking technologies to improve efficiency in both on-time delivery and cost management.
This year’s study, conducted by Drive Research, investigated the root causes of underutilization in truckload programs. Surveying 1,000 transportation decision-makers from different industries, the study uncovered key inefficiencies in the U.S. freight landscape.
2024 was characterized by deflationary market conditions, which kept shipping rates low. However, as we move into 2025, rates are expected to rise, though uncertainty remains about the extent of the increase due to new tariffs enacted in early 2025. Despite this uncertainty, 83% of shippers reported an increase in their transportation budgets from 2024 to 2025, with most experiencing a 1% to 10% increase (82%).
A recurring theme among shippers was the emphasis on timely delivery, which often leads to partially empty truckloads. Many shippers are adopting AI and new tracking technologies to improve efficiency in both on-time delivery and cost management.
This year’s study, conducted by Drive Research, investigated the root causes of underutilization in truckload programs. Surveying 1,000 transportation decision-makers from different industries, the study uncovered key inefficiencies in the U.S. freight landscape.
$1,000
Transportation decision-makers
$10M-$3B+
Even mix of company sizes ranging from
$10M-$3B+ in annual revenue
Target industries
Target industries included retail, industrial
machinery/equipment, building materials,
food/beverage, technology/electronics,
and consumer packaged goods
Market Conditions
Evolving tariff policies have reshaped the US trucking market, creating a challenging economic environment. Uncertainty around tariffs has increased market volatility, impacting both spot and contract freight rates. Frequent supply chain adjustments have boosted spot market activity, driving up spot rates and, in turn, contract rates. Rising operational costs, like higher diesel prices, have forced many carriers out of the market, further increasing spot rates. Asset-heavy carriers have been hit hardest, while agile, non-asset-based providers like Flock Freight’s Shared Truckload (STL) model have thrived with cost-effective, efficient solutions. Shippers should focus on adaptability and optimization to navigate these tariff-driven challenges.
As the US freight market transitions into a crucial recovery phase, it continues to grapple with tariff-driven demand uncertainty. Since late last year, the market has shown signs of cyclical improvement, but the road ahead remains uncertain. Inflation, unpredictable tariff policies, and a weakening labor market complicate demand forecasting. In this environment, shippers must turn to flexible shipping solutions like Flock Freight’s STL model, which combines the speed and reliability of truckload shipping with the cost efficiency of paying only for the capacity they need.
While the market is projected to recover, with both spot and contract linehaul rates likely to rise through Q2 2025, shippers must remain agile. Adapting quickly to shifting supply and demand conditions will be essential to maintaining a competitive edge in this dynamic landscape. By adopting innovative, flexible strategies, shippers can navigate the challenges ahead and position themselves for long-term success.
As the US freight market transitions into a crucial recovery phase, it continues to grapple with tariff-driven demand uncertainty. Since late last year, the market has shown signs of cyclical improvement, but the road ahead remains uncertain. Inflation, unpredictable tariff policies, and a weakening labor market complicate demand forecasting. In this environment, shippers must turn to flexible shipping solutions like Flock Freight’s STL model, which combines the speed and reliability of truckload shipping with the cost efficiency of paying only for the capacity they need.
While the market is projected to recover, with both spot and contract linehaul rates likely to rise through Q2 2025, shippers must remain agile. Adapting quickly to shifting supply and demand conditions will be essential to maintaining a competitive edge in this dynamic landscape. By adopting innovative, flexible strategies, shippers can navigate the challenges ahead and position themselves for long-term success.
Market Conditions
Why external factors prevent shippers from maximizing truckload utilization
Truckload underutilization rises to 58% in 2024.
Year-over-year data shows that shippers are increasingly moving partially empty truckloads with lower average utilization, likely due to a soft market where truckload costs are low and the financial impact of shipping unused space is minimal. In 2024, 58% of truckloads moved partially empty, leaving an average of 34 linear feet of deck space unused—equivalent to 1 in 3 truckloads moving completely empty. This marks an increase from 2023, where 43% of shippers reported partially empty truckloads with an average of 29 linear feet of unused space, equivalent to 1 in 4 truckloads moving fully empty. Notably, 79% of freight falls within the 10-40 linear feet or 5-20 pallet range. This "mid-sized" freight represents a significant opportunity for optimization, as it is also where much of the waste occurs.
Empty space in truckloads equates to 1 in 3 trucks moving completely empty
Here’s why: In 2024, with the average less-than-truckload (LTL) cutoff at 9.8 feet, shippers with larger shipments often resorted to shipping partially empty truckloads to ensure reliable delivery.
45.1% of shippers booked truckloads because they weren’t sure another mode would deliver their freight on time.
43% of shippers booked truckloads because they weren’t sure another mode would deliver their freight damage-free.
Percentage of truckloads that moved partially empty in 2024 by company size
Average size of each partially empty truckload shipped in 2024 by company size
Although shippers try to maximize efficiency through truckload utilization, many fall short of their goals due to external factors.
Nearly 95.8% of shippers have truckload utilization KPIs for their business, with an average goal of 84.6% utilization. However, the average truckload utilization reported for partially empty loads was only 37% in 2024. Many shippers are striving to fill their trucks, with 57.9% choosing to delay shipping until they can fill an entire truckload. As a result, they often hold onto their goods longer than they’d prefer.
95.8%
of shippers have truckload utilization KPIs
84.6%
is the average truckload utilization goal
Shippers are often forced to move partially empty truckloads due to a variety of external factors beyond their control. For instance, they have little influence over the order sizes required by big-box retailers. Unpredictable order sizes further add to the challenge, making it difficult to optimize truckload utilization. Just-in-time production systems demand dynamic supply chains that move freight as soon as it's ready to reach the market, regardless of truck capacity.
Truckload underutilization isn’t caused by a company’s transportation strategy, but rather by traditional shipping modes that limit their ability to ship on demand.
96% of shippers aren’t fully satisfied with their multi-stop truckload programs
Multi-stop truckload shipping is a common strategy used by truckload shippers to maximize utilization and reduce costs. However, this approach is typically accessible only to larger companies that generate sufficient shipment volume to consolidate their own loads.
For multi-stop truckload shipping users, 14% of their truckload spend went to this mode on average. Despite increasing reliance on technology and managed services, virtually all (96%) are not fully satisfied with their current multi-stop program due to operational challenges and lack of shipment density.
The majority of these shippers rely on managed transportation providers (77%) and TMS optimization technology (72%) to build multi-stops. These findings highlight the importance of optimizing multi-stop routes and refining operational procedures to minimize service disruptions.
For multi-stop truckload shipping users, 14% of their truckload spend went to this mode on average. Despite increasing reliance on technology and managed services, virtually all (96%) are not fully satisfied with their current multi-stop program due to operational challenges and lack of shipment density.
The majority of these shippers rely on managed transportation providers (77%) and TMS optimization technology (72%) to build multi-stops. These findings highlight the importance of optimizing multi-stop routes and refining operational procedures to minimize service disruptions.
The most common pain points with multi-stop truckload programs:
55%
Difficult managing carrier operations
47%
Difficult accommodating pickup and delivery appointments
46%
High out-of-route mileage
39%
Difficulty filling the entire trailer
23%
Not enough density to build multi-stops
23%
Lack of sufficient tools
The need for speed:
Why traditional modes are falling short
1 in 6 LTL shipments arrived late in 2024
Big box retailers and grocery distributors often require 95% or higher on-time, in-full delivery, making it nearly impossible to meet these demands with less-than-truckload (LTL) shipping. Failure to meet these requirements can result in hefty fines based on the value of the goods, or worse, complete rejection of the shipment by the customer. To avoid these costly penalties and ensure customer satisfaction, many shippers opt to move partially empty truckloads, prioritizing compliance with strict delivery standards over maximizing truck capacity.
82%
Average on time delivery rate for LTL shipments in 2024
OTIF requirements cost the average enterprise shipper $6.1M annually
Big box retailers and grocery distributors often require 95% or higher on-time, in-full delivery, making it nearly impossible to meet these demands with less-than-truckload (LTL) shipping. Failure to meet these requirements can result in hefty fines based on the value of the goods, or worse, complete rejection of the shipment by the customer. To avoid these costly penalties and ensure customer satisfaction, many shippers opt to move partially empty truckloads, prioritizing compliance with strict delivery standards over maximizing truck capacity.
“On time delivery and auto-tracking are essential because they ultimately help build strong customer relationships and minimize OTIF penalties.”
Enterprise food and beverage respondent
Speed to market is becoming increasingly important, yet traditional modes aren’t equipped to handle fluctuating demand
Speed and reliability have become essential for shippers
in today’s fast-paced industry. When selecting a broker,
they prioritize key factors like on-time performance, insurance coverage, and auto-tracking to guarantee dependable deliveries. For shippers, avoiding delays is paramount, as even minor setbacks can lead to costly late fees and the risk of losing customers.
This urgency often drives them to move underutilized truckloads to stay on schedule. Ultimately, consistent and timely service is crucial for ensuring their operations run smoothly and efficiently.
The most important attributes of a broker’s carrier network
01
On-time performance (pickup & delivery)
02
Insurance (cargo, auto, liability, etc.)
03
Auto-tracking
04
Electronic logging device (ELD) compliance
05
Previous load history with broker
Shippers explain why these attributes are the most important to them
“Getting shipments on time is a big deal because delays mean extra costs and frustrated customers. Insurance keeps us covered if something goes wrong, and tracking helps us stay on top of things and avoid surprises.”
—Mid-market food and beverage company
“We rely on precise timing to keep our production running smoothly, so even small delays can cause big headaches and tracking our shipments helps us stay ahead of any issues, and having insurance means we are covered if something goes wrong.”
—Enterprise consumer goods company
“All of these are necessary for timely delivery. Tracking ensures that any anticipated delays are identified, and prior communication about them prevents miscommunication with customers.”
—Enterprise building materials company
In addition to delays, rising shipping demand and anticipated rate hikes are just some of the factors placing greater risk on shippers' freight.
Top factors that put freight shipping performance at risk in 2024
Shippers are turning to new technologies to increase efficiency and mitigate risk
Incorporating new technologies into your supply chain is no longer optional—it's essential for improving efficiency and staying competitive. Most shippers understand the value of innovations like AI and advanced tracking technologies, which are quickly becoming top priorities. However, many face challenges such as time constraints and uncertainty around return on investment. Despite these hurdles, nearly half of shippers plan to adopt AI and tracking technologies by 2025, demonstrating a clear commitment to staying competitive in a rapidly evolving shipping landscape.
Top technologies shippers are interested in implementing in the next 12 months:
The True Cost of LTL
LTL shipping is often seen as cost-effective, but hidden fees and handling risks can quickly drive up expenses.
Shipments in the LTL hub-and-spoke network are loaded and unloaded multiple times at various terminals, increasing the chances of delays, damage, and loss. Additionally, since the system is designed for smaller loads, businesses may face unexpected charges if their shipments exceed the anticipated size.
The average enterprise shipper spends $5.1M annually on LTL damage and loss
In 2024, shippers reported an average LTL damage rate
of 1.24%.
This means 1 in every 80 shipments resulted in a damage or loss claim in 2024.
The average cost for these claims is around $1,796 per LTL shipment, with larger companies facing higher expenses, likely due to their larger shipment sizes.
This means 1 in every 80 shipments resulted in a damage or loss claim in 2024.
The average cost for these claims is around $1,796 per LTL shipment, with larger companies facing higher expenses, likely due to their larger shipment sizes.
These frequent damage and loss claims add up to significant losses over a year, with the largest shippers incurring up to $5.1M in damage and loss claims in 2024.
Shippers are even getting creative with new technologies to reduce damage, one respondent stated:
“In the coming year, we will begin using IoT sensors to monitor vibrations and shaking to minimize damage.”
SMB consumer goods company
Amount paid on LTL damage or loss claims in 2024 by company size
The average enterprise shipper spent $9.9M on goods lost to fraud or theft in 2024.
Fraud continues to pose a significant financial risk for shippers, with losses averaging $3.18 million annually due to fraud or theft—affecting roughly 1% of their shipments. Alarmingly, 52% of shippers report experiencing these issues, underscoring the systemic nature of the problem. The technology and electronics sector is the hardest hit, closely followed by food and beverage.
Shipments that were impacted by fraud or theft in 2024
1.11%
Average percentage of shipments impacted by fraud and theft
Amount paid annually by impacted shippers on goods lost to fraud or theft in 2024 by company size
“Our focus is on AI based fraud prevention, which lowers the risk of theft of identity by ensuring secure authentication.”
SMB food and beverage business
Preparing for NMFC changes in 2025
LTL shippers are now facing additional challenges with changes to the long-established National Motor Freight Classification (NMFC) system. These adjustments not only disrupt a familiar process but also introduce further short-term uncertainty to the already unpredictable landscape of LTL freight shipping.
In July 2025, the NMFC code system will undergo several key changes, including:
In July 2025, the NMFC code system will undergo several key changes, including:
Standardized density-based classification.
New unique identifiers for special freight.
Simplified & condensed commodity listings.
Enhanced freight classification tools.
The majority of LTL shippers (70.3%), are preparing for this shift. Here’s what they are doing:
Analyzing historical shipment data
Changing packaging procedures
Investing in
pallet scales
Investing in dimensional scanning technology
Shifting to other
freight modes
Haven’t started preparing yet
Nothing, my current process will not be impacted
Shared Truckload as an efficient solution
STL helps shippers meet delivery demands while maximizing cost savings and truckload utilization.
Shared Truckload (STL) turns underutilized truckloads into efficiency gains. With STL, shippers can move their freight as soon as it’s ready, utilizing truckload service without waiting to fill a truckload. This means shippers save time and enjoy cost savings while maintaining the same truckload value they’re accustomed to.
Flock Freight’s Shared Truckload service, FlockDirect®, is powered by advanced AI pooling technology. This technology identifies the best possible routes for shipments and pairs them with other Flock shippers heading in the same direction into a single Shared Truckload.
Working with Flock Freight is simple and similar to working with any other freight broker. The key difference lies in the STL model, which pairs your freight with others to create a more efficient and cost-effective shipping solution.
Flock Freight’s Shared Truckload service, FlockDirect®, is powered by advanced AI pooling technology. This technology identifies the best possible routes for shipments and pairs them with other Flock shippers heading in the same direction into a single Shared Truckload.
Working with Flock Freight is simple and similar to working with any other freight broker. The key difference lies in the STL model, which pairs your freight with others to create a more efficient and cost-effective shipping solution.
Benefits of Shared Truckload:
Only pay for the space you need
Receive truckload-level service
Keep your inventory moving
Avoid costs from damage, delays and theft
Reduce CO2e emissions by up to 40%
Flock Freight takes extra precautions when it comes to security. When you ship any mode with Flock your shipment is significantly less likely to be impacted by theft than the industry standard rate.
In 2024, shippers reported that 1.11%1 of their shipments were impacted by fraud or theft2.
At Flock, we achieved a 99.99% theft-free rate for all shipment types in 20243.
In 2024, shippers reported that 1.11%1 of their shipments were impacted by fraud or theft2.
At Flock, we achieved a 99.99% theft-free rate for all shipment types in 20243.
1 Source: 2024 Drive Research Study & Flock claims data
2 Source: 2025 Drive Research Study
3 Disclaimer: 99.96% reflects all reported claims and may change as new claims are surfaced.
2 Source: 2025 Drive Research Study
3 Disclaimer: 99.96% reflects all reported claims and may change as new claims are surfaced.
Book a demo to see how FlockDirect® can help you drive efficiency within your shipping program.
Methodology
The data supporting the content and objectives set forth in this paper come from an online survey conducted by Drive Research, a third party not affiliated with Flock Freight.
The survey took an average of 30 minutes to complete and included 53 questions. The survey received 1,000 responses. Fieldwork for the survey began on February 14 and lasted until March 14, 2025.
With a probabilistic sample, a total of 1,000 responses at the 95% confidence level offers a 5% margin of error. If the survey were conducted with another random pool of 1,000 respondents, the results would yield within +3% or -3% of the stated totals in the reports. The margin of error can be used as a guideline to understand the reliability of these results.
With a probabilistic sample, a total of 1,000 responses at the 95% confidence level offers a 5% margin of error. If the survey were conducted with another random pool of 1,000 respondents, the results would yield within +3% or -3% of the stated totals in the reports. The margin of error can be used as a guideline to understand the reliability of these results.
All participants were either the sole decision-maker (20%) or shared decision-making responsibilities (80%) for their organization’s shipping solutions.
The desired mix of company sizes was reached (i.e., 20% made
$10 to $99 million, 20% made $100 to $499 million, 20% made $500 to $999 million, 20% made $1 to 2.9 billion, and 20% made $3 billion
or more).
The desired mix of industries included consumer packaged goods (15.5%), building materials (15.5%), food/beverage (15%), industrial machinery/equipment (15.8%), retail (15.9%), technology/electronics (15.4%), and other (6.9%).
A mix of titles or roles was represented including C-Suite
officials (4.5%), Vice Presidents (28.8%), Directors (32%),
and Managers (34.4%).
A mix of departments was represented including supply chain (33.5%), operations (32.9%), logistics (11%), transportation (5.7%), sourcing (1.2%), and procurement (15.7%).
