Join Tallgrass Freight Co. President Sean Richardson as he shares quarterly insights and key updates on the freight market and our company. As we launch into the first quarter of the new year, Sean discusses national and global events and their impact on the market, as well as how freight agents can set themselves up for success in 2025.
The dust is settling with the election behind us, and we now know what direction we’re going and how that will impact freight and the economy at large. On the horizon, we’re seeing a lot of positive signs in regards to truckload market capacity. It seems we’re finally getting closer and closer to what a “normal” freight cycle looked like in the pre-pandemic era. Let’s take a look at what 2025 has in store and what we’re expecting as we approach the first quarter.
Looking Back on 2024
The market size in 2024, in terms of shipments and load count, was the best many of our freight agents have ever seen, despite what many were calling the Great Freight Recession. I attribute this to how our agents never take their foot off the gas. They have strategic growth plans for developing their current customers, they’ve established strong sales funnels, they’ve stayed focused on prospecting and earning referrals and so much more.
Tallgrass agents experienced the same struggles as other freight brokers in 2024. We were all fighting that battle. But I look at the great accomplishments of what our freight agents have done, and it’s a true testament to how driven and methodical our agents are. They’re always looking for new opportunities to bring on new customers and gain additional market share.
This past year, we had a record-highstone here at Tallgrass: Despite the obstacles, we marked a record high load count this fall. One agent even told me he had never done so many loads before in his entire life in a given year! With 2025 is returning to normalcy in the freight cycle, then I foresee this to be a very profitable and bountiful year.
What’s on the Horizon for 2025
Anyone looking to capitalize on the freight market should be excited about the outlook for the start of 2025! There are a lot of opportunities going forward for recapturing some lost gains if you’ve been struggling in the post-pandemic years. Here’s what to watch for in 2025.
January Port Strike Potential
While the port strikes along East Coast and Gulf ports were put on hold back in October, they are expected to resume on January 15, 2025, if an agreement is not reached in time. This deadline is right around the corner, and while we certainly hope that there’s no disruption of freight and shipping among the ports, it’s essential to prepare for all possibilities.
It appears there was significant enough positive momentum during the first negotiation to not stifle the discussion going forward, but will that momentum will be enough to avoid another strike? It’s too early to tell. If a strike takes place, I’m hopeful that it wil be short-lived and cause minimal disruption.
Tariffs on International Shipments
As the new administration establishes its goals and aspirations for the first 100 days, there’s a possibility of significant tariffs being instituted on specific countries, like China and Mexico. Prolonged use of tariffs will eventually trickle down to the end consumer and through the freight market. Anything that can help foster a conversation with big, global empires to negotiate a mutually beneficial deal is a good thing.
Environmental Policies
We’re noticing a significant push for electric vehicles, and not only in the vehicles driven by consumers. We’re also noticing a push in commercial trucks and tractors. I think we’ll begin to see more of an EV impact on the freight market as older, less efficient equipment becomes outdated, and we may see regulations prohibiting them on the road to haul freight.
Naturally, this shift may bring about costs for owner-operators and even carriers themselves, who may need to expend additional capital to change their fleets in accordance with new regulations. These requirements may go into effect in early 2026, which could also impact the end of 2025 and cause capacity to tighten.
Leveraging the First Quarter for a Successful 2025
From a freight agent’s perspective, you have to approach the new year as a great opportunity, especially if you’ve done the foundational groundwork to put yourself in a position to capitalize on what’s to come. If you’re not excited right now, you absolutely should be. The new year is a great opportunity for everybody.
Here are my top recommendations to leverage the first quarter for a year of success and growth:
Prepare for Seasonal Fluctuations
As we emerge from the winter doldrums and the holiday season, we’ll start seeing some of the normal seasonal impacts around March and April. Produce will start moving throughout the Southeast, down through the Gulf Coast area, causing a transition of capacity to help reallocate resources to those areas. Typically, these seasonal loads are more expensive and higher-paying, so that’s something worth capitalizing on in that season!
Build Relationships with Carriers
Carriers are just as important for a freight agent as customers. Without carriers, we don’t have customers, so it’s crucial for agents to treat them with respect. In the freight industry, it’s very easy to have a disgruntled conversation when something doesn’t go according to plan. But here at Tallgrass, we want to be known as a broker carriers want to haul freight for — because they know our agents do things the right way. We move good, clean freight. We have good, detailed, accurate information. And we always treat carriers with respect.
Providing good, consistent communication to your carriers is critical to a successful long-term relationship with your customers too. The biggest system failure I see in freight brokerages is a too little communication and too many assumptions. Success happens when you clearly communicate what’s going on, and do everything you can as an advocate for both the carrier and the customer.
Bet on Yourself, Not Someone Else
I always tell our freight agents to have a mirror on their desks and look at the person in the mirror. That person is fully responsible for any and all success that they have. That person is also fully responsible for any and all failures. As an independent freight agent, it’s all on you.
Sound like a lot of pressure? Maybe it is. But think about it through this lens: Wouldn’t you rather take that bet on yourself than rely on anyone else?
Building a business isn’t easy. If it were, everyone would do it. But if you can come in with a plan and work that plan every single day, that makes a difference. After a week, a month or a year, are you still tackling your work with the same level of intensity? The opportunity is out there for anybody who will approach this upcoming year with a plan and execute it day after day.
The best time to become a freight agent was yesterday, so let’s start now and get the ball rolling! Talk to us today about joining Tallgrass.