DC to DC and Beyond: Three Trends Shaping Food Transportation

Nick Terry • January 12, 2024

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Let's cut to the chase — 2024's food transportation and logistics outlook is pulsing with innovation and challenges. Imagine a world where sleek technology seamlessly intertwines with the gritty realities of labor and operational costs, all while consumer choices shift like the tides. This sector isn't just about DC-to-DC transfers or the backdrop to our daily lives; it's a living, breathing ecosystem adapting to the rhythms of technological progress, economic shifts, and evolving tastes. We're about to unpack three transformative trends shaking up the industry, revealing what’s making it tick and keeping our world nourished and moving.

Trend 1: Technology and Automation in Food Logistics

Food logistics is undergoing a revolutionary change driven primarily by technology and automation. It’s a shift not just about efficiency but a response to various challenges, including changing consumer demands, environmental concerns, and the need for greater transparency.

Rising Importance of Supply Chain Visibility

Recent events over the past three-plus years have revealed the fragility of our food supply chain. The pandemic led to abrupt order cancellations for foodservice suppliers, resulting in significant stock excess due to mismatches in packaging sizes, exacerbating food waste. Geopolitical tensions, particularly the conflict in Ukraine, have disrupted vital crop supplies like wheat and corn, impacting global food accessibility. Similarly, climate change has led to concerning agricultural shifts; Malaysia's chicken export restrictions due to reduced egg production in extreme heat and India's wheat export ban following a heatwave-induced yield drop are prime examples. 


In response, technology has become indispensable. With only
6% of companies having full supply chain visibility, 70% now prioritize this aspect strategically. Emerging technologies like AI and machine learning further revolutionize this space, enhancing demand forecasting, inventory management, and market responsiveness. 


Adoption of Advanced Technologies

Let's take a closer look into those innovative technologies transforming food transportation:

  • Real-Time Visibility: Essential for tracking goods, monitoring inventory, and adapting to demand changes. Alpine Fresh, a major player in the U.S. fruit and vegetable import market, is a prime example of the impact of this technology. They faced substantial losses due to untraceable shipments and product spoilage, so they turned to Tive’s Solo 5G trackers. This move improved their logistics operations and saved them hundreds of thousands of dollars. 
  • Blockchain: This technology offers a secure, decentralized ledger, vital for industries needing high transparency and traceability. Nestlé's use of IBM's Food Trust blockchain ledger exemplifies this. Through it, they can track the origin of products like Mousline purée and Zoégas coffee, partnering with the Rainforest Alliance to monitor cocoa bean sources, enhancing consumer transparency and supporting sustainable farming practices.
  • Artificial Intelligence (AI): AI's application ranges from predictive analytics to data analysis and automation. Its impact on the food supply chain is significant, addressing challenges like container storage costs, asset planning, and route optimization. The increasing adoption of AI-driven solutions in the industry is a testament to its effectiveness in streamlining operations and enhancing overall efficiency. 

Trend 2: Addressing Operational Challenges

The second trend shaping food transportation and logistics is addressing operational challenges. This trend encompasses two major areas: labor and talent management and capacity and cost issues.

Labor and Talent Management

Beyond food logistics, the challenges of retaining workers and managing rising labor costs impact the entire value chain in the transportation and logistics sector. Despite wage increases, logistics operations struggle with hiring and retaining frontline workers. Over 3 million truck driver positions are unfilled globally, including a 60,000 driver shortage in the U.S. Worse, this global shortage could double by 2028. To address these issues, companies are building strategic relationships with temporary staffing agencies and prioritizing proactive hiring, employee development, competitive compensation packages, workforce retention, and developing managers and supervisors. They also leverage technology like advanced tracking and automation systems for more efficient operations.

Dealing with Transportation Capacity and Cost Issues

A 2022 survey revealed that 71.8% of companies were dealing with global supply chain disruptions, and 57.7% were working through ongoing transportation capacity shortages. Consequently, U.S. business logistics costs surged to $2.3 trillion, a substantial 19.6% increase from the previous year, accounting for 9.1% of the nation's GDP, the highest in the deregulated era. These challenges persisted throughout 2023 and led to rising transportation costs, directly impacting the profit margins of food and beverage manufacturers and causing widespread operational disruptions. 

In response, companies are adopting innovative approaches like big data analytics for improved operational insights and route optimization, utilizing Industry 4.0 tools for waste reduction and food safety, switching to more efficient materials like plastic pallets for transportation, and implementing advanced optimization algorithms to enhance transportation efficiency.

Trend 3: Consumer Behavior and Market Dynamics

The third and final trend impacting food transportation and logistics is the interplay of evolving consumer behaviors and global market dynamics.

Shifting Consumer Preferences

Shifting consumer preferences are significantly influencing food transportation. A study by Ingredion shows that 75% of consumers are making more deliberate food choices, with a willingness to pay more for brands aligning with their ideals. Deloitte UK also highlights how the rise in energy prices in 2023 drove consumers towards sustainable products and packaging. Simultaneously, BCG reports that health, quality, and nutrition are top priorities in food choices. 


These trends necessitate efficient transportation for fresh, organic, and local foods, transparency in processed food supply chains, and robust networks for increasing online grocery shopping and home delivery services. Moreover, as consumer behavior evolves, driven by
social trends, economic conditions, and technological advancements, businesses must adapt their supply chain and product offerings to meet these changing demands. 


Economic and Geopolitical Influences

As we kick off 2024, the food transportation sector is still reeling from the prolonged impacts of inflation that began in mid-2021 despite recent signs of easing. Plus, even if the economy sees a “soft landing” in 2024, economists still expect inflation to remain above the Fed’s long-term 2% inflation target. After all, food prices increased 5.8% in 2023 and could rise another 1.2% in 2024. Compounding these challenges are geopolitical tensions and fluctuating global trade policies. Tensions are occurring worldwide, but the Russia-Ukraine War, with the region’s importance to energy and as Europe’s breadbasket, has disrupted supply chains and spiked energy prices. 


In response, the sector is adopting several strategies to mitigate these effects. These include improving operational efficiency,
strategically managing costs and purchases, and enhancing price-negotiation capabilities. In addressing geopolitical uncertainties, investments in renewable energy, effective recycling of surplus nutrients, regionalizing supply chains, and exploring alternative revenue streams are also key tactics.   


Food Logistics: Entourage Freight Solutions (EFS) and The Road Ahead

The food transportation and logistics world is changing, with technology, operational hurdles, and consumer trends at the forefront. So, if your head is spinning, that’s understandable. How can you put your best foot forward to confront these trends?


The answer lies in working with providers like
Entourage Freight Solutions (EFS). With specialized logistics services designed to cater to the complex needs of this dynamic sector, EFS has an answer for everything in foodservice logistics, food manufacturing, and beyond. Whether leveraging cloud-based technologies for real-time tracking, implementing strategic supply chain solutions, or needing expedited services and a refrigerated truck, they ensure top-tier service regardless of your needs. 


Entourage Freight Solutions is your go-to partner.
Request a quote today and position yourself in the best way possible to thrive in the face of these changes. 



By Nick Terry April 28, 2025
In 2025, trade policy is no longer something that the freight industry can leave on the back burner. Trade policy today is shaping strategy at every level. From tariff escalations and retaliatory duties to sweeping regulatory changes and targeted maritime fees, supply chain leaders are navigating a freight market in which unpredictability is the only constant. Sourcing decisions are shifting, pricing dynamics are unstable, and long-standing operational models are being rewritten in real time. This edition brings together key stories highlighting the growing pressure across logistics channels. Each development points to an industry moving fast, and often reactively, to keep pace with volatile policy decisions. Tariffs Stall US Freight Recovery as Shippers Pause Orders The recent move by the U.S. Trade Representative (USTR) to impose entrance fees on Chinese-built ships calling U.S. ports has only added to the confusion and uncertainty gripping global supply chains and freight operations. Shippers are pausing plans and slashing orders, with truckload volumes, containerized imports, and manufacturing output all showing signs of contraction. Ocean freight spot rates have collapsed: Asia-U.S. West Coast rates have fallen 61% since January to $2,050 per FEU, while East Coast rates have dropped 53.7% to $3,100 per FEU . Blank sailings are rising, with vessels leaving Asia half-empty. Amazon and Five Below are among the major retailers reducing orders from Asia. Container imports jumped 15.3% in 2024, but forecasts now predict a 20-27% decline through the summer. Exporters, particularly agriculture and forestry suppliers, are also squeezed, facing 125% retaliatory tariffs from China. Truckload and intermodal rates remain stagnant, while U.S. factory output fell sharply in March. US Apparel Importers Brace for Long-Term Volume Declines According to Trade Partnership Worldwide, a 124.1% tariff on Chinese clothing and footwear is expected to reduce U.S. apparel imports by 1.6% annually . China still accounts for 41.7% of apparel shipments, leaving limited flexibility for diversion. The American Apparel and Footwear Association (AAFA) is warning of price hikes and mounting infrastructure stress as sourcing pivots toward Vietnam, India, and Indonesia. A looming May 2 deadline for de minimis exemptions could further complicate flows and delay deliveries. Even with a temporary 90-day pause in reciprocal tariffs, the policy uncertainty already affects long-term planning. AAFA CEO Steve Lamar calls the shifting policies “chaotic,” and warned that high tariff pressure will hit both importers and U.S. manufacturers reliant on Chinese components. Port and rail capacity limitations at larger gateways are adding to concerns. Retailers now face rising costs, shrinking margins, and operational delays — all while consumer demand continues to shift rapidly. Freight Pricing Gains Lose Momentum According to the TD Cowen/AFS Freight Index, Q1 truckload rates rose 5.9% above the 2018 baseline, but are expected to decline slightly in Q2. Shippers are responding to tariff threats with aggressive front-loading and shorter-haul routes, driving per-shipment costs to three-year lows. LTL carriers remain focused on profitable lanes and high-quality freight rather than chasing volume. The index forecasts a 0.7% year-over-year increase in LTL rate per pound for Q2 , despite sustained demand softness and macro uncertainty. A key driver behind the softening spot market conditions is a shift to shorter hauls and regionalized distribution, pushing per-shipment costs to their lowest point in more than three years. This trend reflects how retailers and manufacturers are repositioning inventory in response to tariff volatility, as NRF’s Jonathan Gold and DAT analyst Dean Croke noted. Meanwhile, the LTL sector is seeing a 4% rise in fuel surcharges, offsetting lower weights and shorter hauls. With the freight market still under pressure after 26 months of contraction, optimism remains subdued as we enter the midyear period. US Truckload Freight Spot Rates Continue to Fluctuate National benchmark rates have experienced a decline across all categories. As of April 18, dry van decreased by 4 cents to $1.62, reefer by 2 cents to $1.88 , and flatbed by 3 cents to $2.16. This marked the first overall decrease since late January, signaling potential shifts in market dynamics. These changes can be attributed to factors such as tariff uncertainties and tighter capacity, especially affecting the flatbed market. Flatbed rates rely heavily on manufacturing activity in the country, which has been particularly hard-hit by the ongoing trade war with China, and to some extent, with the rest of the world. US Finalizes Tiered Fee Plan Targeting Chinese Ships The U.S. is moving forward with a revised plan to levy voyage-based fees on Chinese-owned and Chinese-built ships calling at American ports. The U.S. Trade Representative (USTR) announced the measure as part of a broader Trump administration effort to counter China’s dominance in shipbuilding and logistics while reigniting domestic ship construction and port infrastructure investment. Starting in six months, Chinese operators will be charged $50 per net ton, with an annual increase of $30 for three years . Non-Chinese carriers using Chinese-built vessels will face lower rates, beginning at $18 per ton or $120 per container, with annual increases. The USTR capped fee applications at five voyages per vessel annually, scaling back its original, more punitive per-port-call proposal after intense industry pushback. The fees are tied to findings from a USTR investigation, which concluded that China’s shipbuilding dominance — producing 29% of global fleet capacity and 70% of all container ships on order — stemmed from unfair trade practices. Exemptions apply to ships arriving empty, those in the Great Lakes or U.S. territories, and some bulk exports. LNG vessel transport restrictions will phase in over 22 years to support U.S. production. China’s largest container carrier, Cosco Shipping Lines, has sharply criticized the USTR’s plan. In a strongly worded statement, Cosco labeled the move as “discriminatory,” and warned it would disrupt global industrial and supply chain stability. Cosco denied allegations from that USTR investigation that claimed China manipulated its shipping and shipbuilding sectors to gain an unfair advantage. The carrier said it upholds “integrity, transparency, and compliance” in global competition and remains committed to ensuring the resilience of international trade. Walmart Investing $6B in Mexico, Central America Store Expansion Walmart of Mexico and Central America will invest $6 billion to open new stores across the region , reinforcing its long-term commitment to growth in Latin America. The expansion will include Bodega Aurrera, Walmart Supercenters, Sam’s Club, and Walmart Express formats, building on a robust network of 3,200 stores across all 32 Mexican states. This latest move echoes Walmart’s earlier $1.3 billion investment in 2016 for regional distribution and operational upgrades. The retailer entered the Mexican market in 1991 with a Sam’s Club in Mexico City. In a statement, Walmart said the new expansion reflects confidence in the region’s economic potential and consumer demand. Globally, Walmart continues to invest aggressively in infrastructure and store development. The company has pledged about $4.5 billion for its Canadian operations and $1.3 billion in Chile to build 70 new stores and a distribution center. In the U.S., Walmart is executing a five-year plan to build or convert more than 150 stores while modernizing 650 existing locations under its “Store of the Future” initiative. Experience Seamless Shipping with Entourage Freight Solutions Entourage Freight Solutions believes in total transparency in the shipping process. That is why we invest in tech solutions that track every shipment extensively, monitor every driver, and extract every bit of efficiency without sacrificing quality. Our state-of-the-art platform utilizes cloud-based GPS tracking to keep you informed, reroutes shipments on the fly to avoid delays, and even responds to real-time market changes to ensure you receive your shipment on time and as soon as possible. Our Services Full Truck Load (FTL): When you need a truck all to yourself. Less-Than-Truckload (LTL): Efficient solutions for multi-stop shipments or combining smaller loads to save on costs. Refrigerated Trucking: Keeping your temperature-sensitive products fresh and safe. Cross-Docking: Strategically located facilities in Shelby, Ohio, Cedar Rapids, Iowa, and Romulus, Michigan, for streamlined consolidation, storage, and distribution. Ready to experience a new level of service and control in your freight shipping? Request a quote today to see how Entourage Freight Solutions can help with your freight movement and other supply chain needs.
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