Ahead of the Curve: 4 Insights to Powering Drayage Success in 2025

This year was full of disruption and innovation in drayage, and 2025 is shaping up to be another dynamic time for the first mile of the supply chain. 

I recently moderated a PortPro webinar exploring the state of drayage in 2024 and what lies ahead next year for the drayage space. Three industry leaders joined us: Lisa Yakomin, President of the Association of Bi-State Motor Carriers; Lee Klaskow, Senior Analyst for Transportation & Logistics at Bloomberg Intelligence; and Cary Davis, President & CEO, American Association of Port Authorities. Each panelist brought a unique perspective on challenges and opportunities facing our industry— sparking a lively conversation about how all of us in drayage can adapt and thrive moving forward.

Here’s a recap of panelists’ 4 key insights for the state of drayage in 2025.

#1  The Economics of Freight in 2025 Could Be a Mixed Bag

GDP growth isn’t looking great for 2025. When consumer demand and BCO demand soften, it naturally affects trucking rates and drayage volumes. Expectations for GDP growth are 2.1%, down from this year’s 2.7% growth, according to Lee.

“So we're seeing a deceleration of growth,” Lee said. 

On the flip side, he expects trucking contract rates to rise by mid-single digits. Why? Rates have been slow to recover because of “capacity that's been coming out of the market has been a lot slower than we would have thought,” Klaskow said. 

Lisa also predicted rates would go up in 2025 and there will continue to be carrier exits. “There’s going to be some residual pain as we get back to the new normal,” she said.

It pays to track these macroeconomics. Shifts in consumer demand can create pressure on both capacity and margins, so drayage operators need to stay nimble to deal with various scenarios.

#2  The Supply Chain Will Push for Green Initiatives That Make Sense

The Inflation Reduction Act included $3 billion for port decarbonization and infrastructure, Davis said. The funds can be used for all sorts of projects, including electrifying port operations, on-dock rail, plug-in vessels, plus alternative fuels like hydrogen and liquified natural gas. Lisa added that the Port of New York, New Jersey received almost $400 million for clean air initiatives and fleet conversion to low-emission and electric vehicles.

“We all want to reduce pollution. That is something that we can all agree on,” Lisa said.

But how to get there is up for debate. According to her, EV mandates are not the way to go. She mentioned testimony by Andrew Boyle, co-president of Boyle Transportation and former chairman of the American Trucking Associations. Boyle said a diesel truck takes 15 minutes to fuel, then the driver can go 1,200 miles, whereas an electric vehicle can take 10 hours to charge and only go 300 miles. Plus, electric trucks have extremely heavy batteries, which means they can’t carry as much cargo due to weight restrictions. 

“Maybe zero-emission is the long-term goal, but we need to start having some short-term goals that are achievable,” Yakomin said.

She said infrastructure needs to be a priority, and efficiency needs to be a main goal. Lee added that a big way to improve emissions is by replacing older diesel trucks with newer ones. 

Meanwhile, Cary mentioned that BCOs play a role in emissions reduction, too. While it’s a slow transition, some shippers have changed their purchasing decisions based on carbon footprint or put out requests for low-emission shipping, Davis said. “There's absolutely a groundswell of people who want ports to be cleaner. No doubt about it.” 

Embracing greener practices, at a pace that makes sense, will help position drayage players ahead of the curve.

#3  Carriers will Keep Gravitating to Emerging Tech

In today’s market of low freight rates, carriers are laser-focused on making their businesses as efficient as possible to preserve margins. One of the best ways to do that? Differentiate, focus on the fundamentals, and embrace technology.

During the webinar, we discussed how carriers started adopting more technology to reduce in-person interactions during COVID. Carriers started to become more open to technology during the pandemic, as they tried to minimize in-person interactions. But as fleets realized the benefits technology brought them, they kept those tools once they saw the benefits in day-to-day operations. Now, 70% of industry stakeholders view tech adoption as critical for future success.

Lisa also mentioned a handful of technologies that help with those day-to-day operations:

• Real-time fleet tracking software

• Apps that help drivers move efficiently through terminals

• Electronic appointment systems

Many of these technologies focus on transparency and information sharing, which have seen growing demand and essentially become table stakes. 

“Being able to open up something on our cell phone, know exactly what's happening with that cargo, when is it gonna be delivered – people want to know where their stuff is,” I contributed.

#4  The Next Administration Could Make Big Shifts That Impact Trucking

Cary opened up this portion of this discussion and expects “a clean sweep” as the presidential administration switches over in late January. But as for the supply chain, politicians on both sides of the aisle are paying a lot of attention to resilience, infrastructure, and freight policy. 

Tariffs are a big unknown. Donald Trump has vowed higher tariffs on goods imported into the U.S. Higher prices could lessen demand and therefore freight. Trading partners like Mexico and Canada could retaliate with tariffs of their own, Lee said, affecting exporters and the drayage carriers hauling that freight. Cary noted, though, that maritime trade “is remarkably persistent.” In the past, seaborne trade rose despite global shutdowns and tariffs. 

Lisa hopes the next administration will be friendlier to independent contractors, and that there will be more stable policies related to contractor laws. At the Port of New York and New Jersey, about 77% of truck drivers are owner-operators and they need consistent rules that let them remain flexible and competitive.

“We need to preserve that flexibility in the workforce,” she added, “and the only way we're going to do that is if we stop this ping-pong policy.”

Where Do We Go From Here?

As we reflect on the challenges we faced throughout 2024, it’s clear many of those hurdles are transforming into real opportunities for 2025. In an industry that’s so dynamic and constantly evolving, the real winners in drayage will be those who adapt quickly, embrace innovative tools, and build resilient partnerships. Staying agile and laser-focused on solutions that deliver tangible results, we’ll be ready not just to weather the changes ahead, but to turn them into lasting growth.