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Colliers Group: Freight Rate Trends Reflect Mixed Conditions Across Modes in Early 2025

Furniture World News Desk on 3/31/2025


Domestic freight rates have increased between 3–7% since the third quarter of 2024, driven by tightening capacity and higher operating expenses. Key cost contributors include rising prices for insurance, vehicle parts, labor, and fuel.

In contrast, ocean freight rates have declined, particularly on Asia-to-U.S. routes. Rates have softened following Lunar New Year due to seasonal demand reductions and the impact of vessel rollover pools. However, ongoing geopolitical disruptions continue to affect international shipping.

Despite a recent ceasefire, carriers remain reluctant to return to the Suez Canal route, maintaining longer transit times and elevated costs through alternative paths such as the Cape of Good Hope.

Freight Benchmarks (as of Q1 2025):

  • Diesel Fuel: $3.67 per gallon (+3.6% since Nov 2024)

  • Less-than-Truckload (LTL): $473 for a 4,000 lb. shipment (+7.1%)
    Route: Ontario, CA to Las Vegas, NV; includes FSC; Class 100; four 1,000-lb. pallets

  • Parcel: $18.34 for a 5 lb. shipment (+6.0%)
    UPS Ground from Ontario, CA to Dallas, TX; undiscounted, no accessorials

  • Air Freight (Domestic): $13,641 for a 4,000 lb. shipment (+5.0%)
    UPS Next Day Air; door-to-door from Ontario, CA to Dallas, TX; includes four oversized pallets

  • Intermodal: $3,296 per shipment (+7.4%)
    Los Angeles, CA to Chicago, IL; includes line haul, FSC, and standard facility handling; 53-ft. equipment

  • Ocean Freight: $4,392 per 40-foot container (-9.2%)
    Shanghai to Los Angeles/Long Beach; includes base rate, bunker fuel, surcharges; excludes destination terminal handling

Domestic drayage and truckload spot rates have also edged upward, reflecting broader market pressures.

Retailers are advised to monitor freight developments closely as tariff changes and regional instability may continue to influence costs and lead times in the months ahead.

 

 

About  Ben Haverty
Ben Haverty has over 30 years of experience as an executive and entrepreneur in the furniture industry, operating retail stores, home delivery warehouses and regional distribution facilities. As the lead of Colliers Furniture Real Estate Group, Ben works with Colliers integrated real estate services to provide comprehensive solutions for every stage of the furniture industry supply chain, ranging from retail showrooms to home delivery furniture warehouses and wholesale distribution centers. Contact Ben to connect with Colliers’ team of professionals to accelerate your success in the home furnishings industry. For more information, visit www.colliers.com/en/experts/ben-haverty.