The over-the-road (OTR) freight market continues to face a perfect storm: soft demand, high operating costs, and a rate environment that is not rebounding fast enough. This margin squeeze is forcing carriers, brokers, and shippers to rethink how they operate.
While no single strategy can erase these pressures, the companies that adapt with smarter processes and sharper visibility are the ones finding breathing room. Here are five ways freight leaders are fighting back.
One of the most overlooked levers in freight management is the choice of mode and lane. A shipment moving LTL, when it could be consolidated into Truckload, or a load routed through a congested or high-cost corridor, can mean hundreds of dollars lost per move.
Leaders are using historical lane data alongside real-time market insights to better match shipments with the right mode. For example, consolidating partial truckloads in regional corridors can significantly cut costs without sacrificing service. Balancing contractual and spot market exposure also allows shippers to avoid overpaying in lanes where capacity is looser.
Margin is not only set in the marketplace. It is also shaped by every routing decision.
Tariffs and parts shortages do not just impact manufacturers; they ripple directly into trucking. When equipment becomes more costly to buy or maintain, or when imported goods carry added costs, transportation providers are forced to absorb more risk.
Smart operators are mapping where tariffs hit hardest in their networks and looking at alternative sourcing or routing strategies. Some companies are shifting freight away from congested ports or diversifying supplier bases to reduce exposure to any one tariff policy while others are incorporating tariff surcharges transparently into bids so they can be passed through fairly, rather than absorbed unpredictably.
This proactive approach makes costs more predictable and protects margins.
Even with trucks on the road, underutilization is quietly eating away at revenue. Empty miles, partial loads, and poor load matching create hidden waste that multiplies across fleets.
Companies are tackling this by rethinking how freight flows through their networks. Some are investing in better load planning and predictive tendering to ensure that equipment is assigned to the most profitable routes. Others are improving collaboration between shippers and carriers to pair backhaul opportunities with outbound freight and reduce deadhead miles. Seasonal and regional demand shifts, such as produce peaks or construction surges, are also being tapped strategically to keep assets running fuller.
The key is not just to move freight, but to move the right freight in the right sequence to maximize every mile.
Margins are often won or lost at the negotiating table. Yet many companies still rely on outdated benchmarks or anecdotal market knowledge when setting rates.
By capturing detailed data on service performance, tender acceptance, lane consistency, and cost fluctuations, shippers and brokers can enter negotiations with objective leverage. For example, showing a carrier that their on-time performance is consistently below peers in a lane can justify a lower rate or a shift in volume. Conversely, carriers can use safety records or reliability data to defend their pricing in competitive markets.
Data moves negotiations away from guesswork and toward measurable value. In an environment where every penny matters, this transparency is what prevents the race to the bottom while still protecting profit.
The frontlines of trucking get the attention but the back office is where margin often leaks quietly. Billing errors, duplicate entries, missed accessorials, and slow claims resolution all add up to wasted dollars.
Leaders are tightening these processes by automating repetitive tasks, standardizing documentation, and integrating compliance checks into workflows. For instance, catching discrepancies between contracted and invoiced rates before payment prevents overbilling. Faster document reconciliation means carriers get paid sooner, improving cash flow at a time when liquidity is tight.
It is not only about cutting overhead. A leaner, more accurate back office reduces disputes, strengthens carrier relationships, and ensures margin is protected long after the freight has delivered.
The margin squeeze is not going away any time soon. Freight demand remains uneven, costs are stubbornly high, and rates are recovering slowly. But that does not mean profitability is out of reach.
The companies that come out stronger will be those that take control of the levers they can influence. Better routing, smarter sourcing, higher utilization, data-driven negotiations, and tighter operations are the differentiators. Waiting for the market cycle to correct could be risky. Running smarter today is how leaders protect their tomorrow.
The strategies above are not just theory. They are the core of how Banyan Technology helps clients protect and recover margin in over-the-road shipping. Here’s how Banyan aligns with each area:
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