RENO, Nev., Dec. 31, 2025 (GLOBE NEWSWIRE) -- ITS Logistics, one of the nation’s fastest-growing 3PLs, has released the December Supply Chain Report. This month, the report reflects a freight market balancing peak-season headwinds with softened demand and volatile capacity. While regional trucking capacity tightened amid severe winter weather and seasonal demand, softer industrial activity, moderating warehouse utilization, and policy-driven labor uncertainty are shaping a more cautious outlook for the broader supply chain entering 2026.
“Heading into the year-end, the supply chain is being shaped less by a single pressure point and more by the convergence of several somewhat volatile factors,” said Josh Allen, Chief Commercial Officer at ITS Logistics. “Seasonal demand is still present, but it’s now intersecting with labor constraints, policy risk, and new consumer trends, which is changing how capacity is utilized across the market.”
Trucking conditions tightened unevenly in November as peak-season demand coincided with severe winter weather across the Midwest. Major storms disrupted freight flows and constrained available capacity in several regional markets, pushing rates higher amid typical holiday surges. The national 7-day rolling average spot rates across both the reefer and dry van markets also ticked upward moving into early December, per DAT, with reefer rates reaching the third-highest Week 50 rate ever recorded.
Flatbed rates also rose, but only marginally — reflecting more restrained consumer demand beneath the pressures of peak season. The flatbed market continues to face headwinds tied to tariffs, elevated borrowing costs, and delayed construction activity. Recent earnings commentary from Home Depot underscored this trend, with the retailer citing consumer hesitation around large projects and renovations.
Evolving driver regulations also remain a growing source of uncertainty in the domestic supply chain — extending beyond peak into 2026. A new lawsuit has been filed in response to California’s notice to cancel nearly 20,000 commercial driver’s licenses. The suit alleges a significant portion of the cancellations stem from administrative and clerical errors tied to compliance documentation, with impacted drivers having little recourse to reapply for proper licensing. The case has drawn particular attention to the impact new enforcement actions are having on Sikh drivers, who represent roughly 20% of the total U.S. driver pool, emphasizing concerns that broad regulatory changes could significantly impact capacity in the year ahead.
At the ports, containerized import volumes declined 5.4% month-over-month to 2,183,048 TEUs. With this continued downward trend, year-to-date volumes are now just 0.1% higher than 2024 levels — down from 10% margins at the beginning of the year. Even so, November ranked among the stronger import months on record, underscoring a degree of resilience beneath the slowdown.
From a macroeconomic standpoint, November data pointed to a cooling but persistent U.S. economy. Inflation continued to ease, job growth slowed, and consumer confidence weakened, yet overall spending held steady during the early holiday period. The National Retail Federation reported that total retail sales increased marginally month-over-month in November, and full-season holiday sales are projected to surpass $1 trillion for the first time, reflecting a consumer base that remains engaged but increasingly value-conscious as economic uncertainty persists.
ITS Logistics offers a full suite of network transportation solutions across North America and distribution and fulfillment services to 95% of the U.S. population within two days. These services include drayage and intermodal in 22 coastal ports and 30 rail ramps, a full suite of asset and asset-lite transportation solutions, omnichannel distribution and fulfillment, LTL, and outbound small parcel.
The monthly ITS Supply Chain Report serves to inform ITS employees, partners, and customers of marketplace changes and updates. The information in the report combines data provided through DAT and various industry sources with insights from the ITS team. Visit here for a comprehensive copy of the report with expected industry insights and market updates.
About ITS Logistics
ITS Logistics is one of North America's fastest-growing, asset-based modern 3PLs, providing solutions for the industry’s most complicated supply chain challenges. With a people-first culture committed to excellence, the company relentlessly strives to deliver unmatched value through best-in-class service, expertise, and innovation. The ITS Logistics portfolio features North America's #18 asset-lite freight brokerage, a top drayage and intermodal solution, an asset-based dedicated fleet, an innovative cloud-based technology ecosystem, and a nationwide distribution and fulfillment network.
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An infographic accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/faed79f9-eb8a-42af-b4f1-269dbcdc1cd6
