Why Are Freight Rates So Low Right Now?
If you’re an owner-operator or fleet manager, you’re not imagining things—freight rates in 2025 are still painfully low. Despite high fuel and insurance costs, average spot market rates have dropped below operating expenses. The Freight Rate Freefall: What’s Going On? The freight market is broken. Most loads pay far below operating costs. Owner-operators are running at a loss, while mega carriers survive on high volumes. “I hauled a reefer load from Texas to Georgia for $1.65 a mile. It barely covered my diesel cost per mile.” The Heartbeat of the Trucking Economy Freight rates serve as a vital indicator for the economy. When they’re flatlining, it’s a sign of bigger problems. A Brief Look Back: The Pandemic Freight Boom In 2020-21, rates hit record highs. Trucks were in demand, and capacity was tight. But that surge led to an influx of new carriers and trucks. Now, we’re seeing the crash. Too Many Trucks, Not Enough Loads With so many trucks chasing fewer loads, the math doesn’t add up. This is the core issue of the trucking recession. The Load-to-Truck Ratio Is Crashing The load-to-truck ratio is crashing across all equipment types, with dramatic drops since the 2021 freight boom. Equipment Type Peak Load-to-Truck (2021) Current (2025) Dry Van 6.2:1 1.6:1 Reefer 10.1:1 2.2:1 Flatbed 85:1 6.5:1 Spot Market Blues: The Collapse That Hurts the Most The spot market is in shambles. Small fleets and new authorities rely on spot loads, and those rates have crashed. Mega Carriers vs. Owner-Operators Mega carriers have leverage. They’ve got contracts, dedicated lanes, and volume discounts. Independent drivers? Not so much. The Rise of Digital Freight Platforms Apps like Uber Freight and DAT have changed the game, offering easier access, but at the cost of increased competition and reduced rate transparency. Shippers Calling the Shots Shippers now have the upper hand. High capacity gives them options—and they’re choosing the cheapest ones. Consumer Demand Is Slowing Down People are spending less, especially on physical goods. Retailers Are Still Sitting on Inventory Warehouses are full. Until they move this stock, there’s no reason to restock. Imports Are Drying Up at U.S. Ports Shipping volumes at major ports like LA, Long Beach, and Savannah have dipped. The Domino Effect of Rising Interest Rates The Fed’s rate hikes have stalled growth in housing, manufacturing, and retail. Fuel Prices Still High, But Freight Pay Is Falling Metric 2024 Avg 2025 Avg Diesel per Gallon $3.89 $3.72 Avg Spot Rate (Dry Van) $2.01 $1.58 Low freight rates in 2025 mean most hauls aren’t covering the diesel cost per mile. Bankruptcies Are Surging in the Trucking Sector FMCSA data shows over 9,000 carrier revocations this year alone. Where Did the Contract Freight Go? Many shippers abandoned long-term contracts. They’re using spot rates or short-term bids instead. Weather Disruptions Aren’t Creating Rate Spikes Winter storms, hurricanes, and even floods used to increase rates. Not anymore. The Invisible Hand of Brokers Some brokers are transparent. Others? Not so much. Government Pressure and Regulatory Costs 2025 is a prep year for the EPA 2027 emissions compliance. That means upgrades, inspections, and costs. Driver Shortage Myth or Market Reality? We don’t have a driver shortage—we have a driver turnover crisis. How Insurance Costs Are Breaking Small Fleets Insurance is often the second-highest cost after fuel. What Truckers Are Saying on the Road “I used to run 3,000 miles a week. Now I park for two days just waiting for a load worth moving.” “Freight rates are trash. We’re doing more work for less pay, plain and simple.” Can the Market Rebalance in 2025? It’s possible—but it won’t be fast. Here’s what needs to happen: Staying Afloat in a Brutal Market Smart survival strategies: FAQs: Freight Rates and Trucking Industry Trends Conclusion: The Fight for Fair Freight The freight market is in a bind, no doubt. Low rates, high costs, and fierce competition are pushing even experienced carriers to the brink. But this downturn isn’t permanent. Truckers who survive today’s challenging market will be better positioned when rates finally rebound. Now’s the time to focus on what you can control: cut unnecessary expenses, maintain strong broker or shipper relationships, and be selective about the loads you haul. It’s also a time to demand more transparency from brokers, platforms, and policymakers. Fair freight isn’t just about price. It’s about respecting the hard work that truckers put in every day. Stay focused. Stay sharp. Better lanes are ahead. Read More










