The once-booming logistics market, where securing transportation capacity was a constant challenge, has undergone a significant transformation. Today's market moves at a slower pace, presenting both obstacles and opportunities for industry players. We explore these changes through the perspective of Erin Van Zeeland, Chief Commercial Officer at Schneider National.
Market Dynamics: Balancing Challenges and Opportunities
Jeff Berman (News Editor, Logistics Management Group): Erin, how would you characterize this year's market performance compared to last year?
Erin Van Zeeland: The current market shows marked differences from last year. The trucking sector has softened considerably with excess capacity flooding the market. Carriers are aggressively competing on price just to keep their fleets moving—a situation persisting for multiple quarters. Compared to 2020-2022, we're seeing reduced consumer spending willingness that's pressuring the entire market.
Key Indicators: Reading the Market Pulse
Jeff Berman: When evaluating freight economics, which metrics do you prioritize among retail sales, consumer demand, inflation, inventory levels, and import activity?
Erin Van Zeeland: We closely monitor the challenges facing our shipper partners. Currently, their inventory outlook has improved—previously, excessive stock levels created transportation bottlenecks. While large shippers report better inventory management, below-expectation sales continue affecting truckload demand. The supply chain flows more smoothly now, though some shippers have reduced inventories below comfortable levels as a precaution. This makes their service requirements exceptionally stringent, as they can't afford stockouts without safety buffers.
Consumer Trends: Understanding Market Shifts
Jeff Berman: How significantly has reduced consumer spending contributed to declining freight volumes?
Erin Van Zeeland: Many shippers focus on gaining market share. While optimistic about year-ahead growth, they aim to achieve this through volume increases rather than price hikes. Maintaining competitive positioning becomes crucial for attracting cost-conscious consumers.
Peak Season Outlook: Preparing for Uncertainty
Jeff Berman: What are you observing regarding peak season preparations?
Erin Van Zeeland: We're in peak planning stages, but unlike previous years, we haven't reached the point requiring elaborate capacity layering. Many shippers relying on smaller carriers and brokers for cost savings worry about peak-season availability—this presents opportunities as some may have chosen vulnerable solutions.
Intermodal Transportation: The Sustainable Future
Jeff Berman: Schneider has been active in intermodal—what's your assessment of current developments?
Erin Van Zeeland: We're excited about our intermodal capabilities. Pandemic-era challenges like equipment shortages and rail service issues have largely resolved. With improved rail performance and ample capacity, our partnerships with CPKC, CSX, and UP show great promise. Shifting freight from road to rail aligns with sustainability goals and operational efficiency. We're targeting doubled intermodal volume by 2030 and see strong progress. The growing manufacturing base in Mexico also presents exciting new supply chain opportunities.
Service Enhancement: Achieving "Trucklike" Performance
Jeff Berman: How is intermodal addressing the need for "trucklike" service?
Erin Van Zeeland: The new CPKC route from Monterrey to the Midwest has exceeded expectations—some lanes now outperform truck transit times. We anticipate similar results from the Mexico-to-Southeast Meridian Speedway route.
Rail Partnerships: Strengthening Networks
Jeff Berman: Could you describe Schneider's collaborations with Class I railroads?
Erin Van Zeeland: Our two-year partnership with Union Pacific on transcontinental West-East Coast moves provides customers flexible options for port and cross-border shipments. CSX delivers excellent service in the East, while our new CPKC relationship offers growth potential.
Nearshoring: Mexico's Manufacturing Rise
Jeff Berman: What does Mexico's emergence as a manufacturing hub mean for nearshoring?
Erin Van Zeeland: The pandemic exposed vulnerabilities in China-centric supply chains. Companies are diversifying to Mexico, which attracted significant foreign investment—including from Chinese firms avoiding tariffs. This shift will profoundly transform North American supply chains across automotive, semiconductor, and component manufacturing.
Technology Innovation: Driving Future Growth
Jeff Berman: What technological advancements is Schneider pursuing, particularly regarding AI?
Erin Van Zeeland: Technology remains crucial for differentiation. Our FreightPower platform, launched three years ago, uses data science to match shippers with optimal capacity solutions. While exploring AI applications through Microsoft's Copilot for sales processes and communications, we view it as supplemental—automating repetitive tasks while preserving human judgment for complex decisions like managing high-volume shipments.
Customer Needs: Tailored Solutions
Jeff Berman: How does Schneider address customers' specific challenges?
Erin Van Zeeland: Through comprehensive supply chain assessments, we identify redundancies and risks, then develop customized strategies. This includes determining which shipments suit long-term contracts with index-based pricing versus spot market participation—helping customers navigate market volatility while achieving their operational goals.
Industry Best Practices
Jeff Berman: Are certain industry approaches particularly effective?
Erin Van Zeeland: In automotive, a control-tower model providing complete visibility and execution capability proves essential. For retail, success lies in supplier coordination—establishing clear expectations around appointments and capacity flexibility to eliminate process friction and improve utilization.