Are we in a freight recession? If you’ve heard the term more often lately, it’s not without reason. From plummeting freight rates to shrinking capacity and rising operational costs, the freight shipping industry is facing turbulence. But is it all doom and gloom? Not exactly. While the data points to a slowdown, there’s a silver lining for agile and informed companies. This article dives into the current state of international freight transportation, why commercial shipping remains vital, and how businesses can leverage freight services to stay competitive.
What Is a Freight Recession and Why Does It Matter
Defining a Freight Recession
A freight recession refers to a significant and prolonged decline in freight volumes and shipping rates, even if the broader economy is still growing. Since mid-2023, the freight industry has experienced this very scenario. According to the American Trucking Associations, the freight sector saw 13 straight quarters of weakening demand, the most prolonged downturn in recent memory.
Indicators of a Freight Recession
- Reduced shipping demand: Post-pandemic shifts from goods to experienced slow freight.
- Falling rates: Spot market rates plummeted by 30% in 2024.
- High operating costs: Rising fuel, maintenance, and interest rates have squeezed profit margins.
- Shrinking capacity: Due to financial strain, many small carriers have exited the market or cut services.
What Caused the Freight Recession?
Key Contributing Factors
Several elements combined to trigger the current freight recession:
Tariffs and Trade Uncertainty
New and proposed tariffs, particularly on imports from China, Mexico, and Canada, have disrupted international freight flows. These policies create volatility in pricing and reduce trade volume, mainly affecting ocean freight.
Pandemic Aftershocks
The freight boom of 2020–2021 led to overcapacity and inflated demand. As consumer behavior normalized post-COVID, demand dropped sharply, leaving the industry with excess capacity and declining revenues.
Inflation and Interest Rates
Persistent inflation and high interest rates have pushed up the costs of trucks, maintenance, and insurance, while dampening consumer spending and freight volumes.
The Role of Commercial Shipping Today
What Is Commercial Shipping?
Commercial shipping refers to transporting goods by sea, air, or land for business purposes. It’s the backbone of global trade, connecting suppliers with customers worldwide.
Why Are Commercial Shipping Lines Important?
- Supports global trade: 80% of world trade by volume moves via sea.
- Ensures supply chain stability: Shipping keeps economies running from raw materials to finished goods.
- Enables scalability: Businesses can move bulk freight across continents efficiently and cost-effectively.
How to Get Commercial Shipping Rates
H2: Getting Accurate Freight Quotes
Thanks to digital freight platforms like ExFreight, getting a freight quote is faster and more accurate than ever. Here’s how:
H3: Steps to Get a Quote on ExFreight
- Create a free account on ExFreight’s online platform.
- Enter shipping details: Origin, destination, commodity type, and dimensions.
- Choose your service: Air freight, ocean freight, or domestic trucking.
- Review instant quotes with detailed cost breakdowns.
- Book and track your shipment online.
ExFreight simplifies rate comparison and integrates multiple freight companies and carriers, helping you choose the most cost-effective solution.
ExFreight’s International Freight Shipping Services
What’s Included in Each ExFreight Service
- Door-to-door shipping to over 150 countries.
- Real-time tracking with GPS integration.
- Instant insurance options during booking.
- Digital documentation uploads and management.
- Support for air freight shipping, ocean freight, and LTL/LCL cargo.
FAQs About Freight and Shipping
Are we currently in a freight recession?
Yes, but signs of recovery emerge in early 2025 as freight volumes climb and some capacity leaves the market.
Which documents are required to ship internationally?
For ExFreight shipments, you’ll need:
- Commercial Invoice
- Packing List
- SLI (Shipper’s Letter of Instruction)
- Bill of Lading or Air Waybill.
How do I get international freight shipping rates?
Enter your shipment’s origin, destination, dimensions, and service type on ExFreight’s online platform for instant rates.
What is the maximum liability without additional insurance?
ExFreight includes a standard liability of up to $10,000, but additional cargo insurance can be purchased during the booking process for extra protection.
Conclusion: Navigating the Freight Landscape in 2025
The freight and shipping industry is experiencing a challenging phase, but not all is lost. Companies that understand market shifts and use digital logistics platforms like ExFreight can grow and thrive. By simplifying access to international freight transportation services, providing instant freight quotes, and ensuring transparency, ExFreight empowers businesses to make smarter decisions.
Whether you’re a small shipper or a logistics veteran, now is the time to optimize your freight strategy. Create your ExFreight account, explore freight technology tools, and take control of your global supply chain.
Ready to streamline your freight operations?
👉 Sign up with ExFreight today and experience smarter shipping.
Let us know how you are navigating the current freight climate. Drop your questions below or reach out to our team.
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