Earlier today, Green Bay, Wis.-based Breakthrough, a provider of fuel and freight solutions for shippers, issued its “2025 State of Transportation Report.”
A key focus of this report centered around what Breakthrough called an expected freight market flip, coupled with new governmental and economic headwinds that will shape shippers’ strategies over the next 12 months.
“Many are turning their attention toward cost-savings opportunities, which could impact the transportation industry’s sustainability progress,” the report stated. “However, leaders won’t have to choose between those competing priorities if they can successfully leverage emissions reduction options that deliver cost-competitive advantages.”
The study’s findings were based on feedback from 500 freight transportation decision-makers, including 350 shippers and 150 carriers, whom answered questions about their goals, priorities, and predictions over the next 12 months.
In looking at the top three considerations for shippers when establishing carrier partnerships, cost led the way, coming in at 57%, followed by on-time pickup/delivery reliability, at 48%, and favorable shipment schedules, at 37%. Those findings marked a shift compared to the 2024 report, which saw add-on services (like warehousing), at 47%, first, followed by on-time pickup/delivery reliability, at 48%, at 46%, and a third-place tie, between sustainable or alternative energy shipping capabilities and innovative technology capabilities (like autonomous vehicles), each at 45%.
Breakthrough COO Jenny Vander Zanden told LM that it was not surprising to see costs as a primary consideration for shippers when partnering with a carrier.
“With rising expenses impacting manufacturers and retailers in recent years, many shippers are actively seeking cost-efficient solutions and opportunities to streamline their transportation networks and reduce expenses,” she explained.
When asked why add-on services did not make the list this year, Vander Zanden noted that shippers are seeking to do more with fewer resources, and they are turning to their current providers for support.
“They will prioritize partners who can offer add-on services and competitive solutions, particularly those they trust and who have demonstrated the ability to successfully implement solutions within their network,” she said.
Another key finding identified by Breakthrough focused on how shippers’ actions are reflecting their increasing focus on controlling costs as they search for opportunities to optimize their networks, with 55% focused on expanding their use of additional transportation modes like rail and intermodal, and 47% planning to expand volume with core strategic carriers, and 39% planning to diversify carrier relationships.
Vander Zanden said that as freight demand increases, shippers often rely on two key strategies to secure competitive costs and service levels: leveraging their volume with core strategic carriers and diversifying their carrier partnerships.
“In either strategy, it is important to be intentional, use data to evaluate carrier compatibility and rate competitiveness, and clearly communicate expectations as market conditions continue to evolve,” she said.
Looking at sustainability, Breakthrough reported that 87% of shippers have set long-term sustainability-related transportation goals, down from 98% a year ago, with the firm adding that the top priority for most shippers remains emissions reduction.
Each year, more shippers are committing to long-term sustainability goals, according to Vander Zanden, adding that as consumers continue to seek sustainable product options and shippers navigate regulatory pressures, Breakthrough sees shippers translate their high-level goals throughout the organization for Scope 1 and Scope 3 emissions reduction.
“Best-in-class organizations have set clear, measurable goals and developed strategic roadmaps to reduce emissions,” she said. “Notably, there is a growing focus on emissions reduction strategies that balance sustainability and cost-effectiveness, reflecting a commitment to both environmental responsibility and economic practicality.”
In looking at how shippers evaluate carriers, the study observed that for shippers with more than $500 million in annual revenue, 41% indicated that they consider a carrier’s financial stability when establishing a partnership, with that percentage dropping to 28% for shippers with $500 million or less in annual revenue.
In explaining that disparity, Vander Zanden said that organizations with higher revenue often have more robust risk management and supplier vetting processes, noting it is not surprising that larger shippers are more likely to prioritize a carrier’s financial stability when forming partnerships.
“We believe establishing new carrier relationships requires an informed, data-driven approach, including the carrier’s fit score within your network, fleet size, the percentage of their fleet your freight would represent, their SmartWay score, safety ratings, sustainability initiatives, and more,” she said. “A thorough assessment ensures partnerships align with both operational needs and long-term goals.”
