Hi there, and welcome to ISG’s latest Market Conditions Recap!
As your trusted partner, ISG believes in keeping you up to date with key developments across the logistics industry. Here’s a quick summary of the current rate trends, capacity shifts, and key disruptions impacting the market during the month of July 2025:
Quick market overview : https://youtu.be/4Gt9RZvNW-0
Canadian Domestic Market:
Freight volumes remain strong in retail, produce, and construction.
- Dry Van: Spot rates up 2% from June due to e-commerce and restocking in Toronto and Vancouver. Fuel costs are starting to pressure pricing.
- Reefer: Rates up 3–4% amid a surge in B.C. produce shipments. Equipment shortages are tightening capacity.
- Flatbed: Spot rates up 1–2%, driven by construction in Alberta and B.C. Load-to-truck ratios rising.
- Key Takeaway: Watch for continued fuel-driven rate increases and driver shortages, especially in Ontario, Quebec, and Western Canada.
Cross-Border (Canada-U.S.):
A split market: Northbound lanes tightening, Southbound softening.
- Dry Van:
- Southbound: FTL rates down 2–3% with 40% drop in LA volumes.
- Northbound: Rates up 2%; holiday imports and ELD rules constraining capacity.
- Reefer:
- Northbound: FTL rates up 2–3%, with LTL up 3–4%. Produce imports rising; equipment and driver shortages persist.
- Flatbed:
- Northbound: FTL rates up 2–3% due to steel and construction demand. Intermodal strain pushing more freight into flatbed.
- Key Takeaway: Capacity is tightening rapidly for northbound reefer and flatbed. Southbound dry van remains soft.
U.S. Domestic Market:
Peak seasonality, fuel costs, and regulation shifts are tightening capacity.
- Dry Van: Spot rates up 3–4% post-July 4 restocking. Chicago and Texas see strong volumes. LTL up 2–3% in Southeast.
- Reefer: Spot rates up 4–5% as produce surges. Load-to-truck ratios exceed 13. LTL rates climbing across the South.
- Flatbed: Rates up 2–3% as hurricane prep and construction increase demand. Diesel up 30% since May, impacting rejection rates.
- Key Takeaway: Reefer and flatbed markets are tight. Dry van demand is growing steadily—early planning is essential.
Looking Ahead:
Seasonal trends are pushing rates slightly higher across all markets.
- Canada: Back-to-school restocking and produce volumes sustaining demand.
- Cross-Border: Northbound pressure continues with holiday imports and driver shortages; southbound softening slightly.
- U.S.: Strong demand driven by harvests, retail restocking, and hurricane recovery efforts—especially in reefer and flatbed.
Forecast: Expect moderate rate increases and tighter capacity in August. Advance booking and reliable carrier partnerships will be crucial.
