This year, the logistics industry saw significant progress in supply chain technology —from the growing accessibility of alternative fuels, electric trucks, and innovations in autonomous trucking, to the use of AI in transportation management and fraud detection. In 2025, the use of these technologies will continue to grow and we’ll begin to see major milestones around AV and EV trucks, as well as the use of alternative fuels and smart technology in sustainability initiatives.
2024 was also a year of major geopolitical shifts. Nearshoring to Mexico was a key trend among shippers, with cross-border trade between Mexico and the U.S. hitting an all-time high towards the end of the year. In 2025, we’ll begin to see how the nearshoring trend impacts the supply chain, and whether an increase in tariffs will lead to increased domestic manufacturing activity and freight demand.
As new advancements make their way through the industry and international trade policies and practices continue to shift, companies are evolving the way their products are delivered around the globe. To explore what lies ahead, we surveyed our experts—leaders in autonomous trucking, sustainability, operations, cross-border logistics, and the freight economy—to get their perspectives on key industry trends and their predictions for the new year.
Read on to learn more about the insights into the technologies, trends, and strategies that will define the future of freight.
AV and EV momentum will ramp up but adoption will take time
The road to fleet-wide adoption of electric trucks is complex and influenced by multiple factors. While orders for electric vehicles (EVs) remain steady—particularly for short-haul routes—there are still many unknowns looming ahead of the incoming presidential administration. “[EV growth] will depend on economic feasibility and identifying the right application for the electric trucks,” says Olivia Hu, Uber Freight’s Head of Autonomous Trucking.
On the autonomous side, the momentum is undeniable. Hu predicts significant milestones in 2025, including expanded operational design domains (ODDs) and the first driverless runs on major freeways. These advancements aim to demonstrate the business case for autonomous trucking. “At Uber Freight, we’ve secured AV [autonomous vehicle] capacity for our customers for many years to come.” Hu says. “In addition to the capacity, we will have a seamless back-end integration and fully bundled offering that will enable fleets and shippers to transition to autonomous trucks to unlock more consistent and efficient capacity.”
While driverless trucks mark a milestone, Hu stresses that the industry’s transformation will take time. “Scaling the manufacturing of a production-ready, fully redundant autonomous truck involves many ecosystem players, including the OEM (Original Equipment Manufacturers),” she says. Importantly, Hu sees AVs improving the lives of truck drivers, offering them local job opportunities and shifting overnight, long-haul routes to autonomous vehicles.
Sustainability efforts will focus on alternative fuels and smart technology
According to Illina Frankiv, Head of Sustainability at Uber Freight, three initiatives will define the freight industry’s approach to sustainability in 2025: alternative fuels, transparent sustainability reporting, and smart technologies for operational efficiency. More organizations are investing in alternative fuels such as EVs, hydrogen, renewable diesel, and renewable natural gas. In 2025, “Companies will focus on disclosing their environmental impact, including Scope 3 emissions, which encompass indirect emissions throughout the supply chain,” Frankiv explains.
Emerging technologies will further drive the shift toward greener logistics. Electric and hydrogen-powered vehicles, dynamic route optimization using AI, and renewable energy-powered logistics hubs are leading the charge. Frankiv also emphasizes the growth of market-driven decarbonization efforts within the trucking sector. This includes the adoption of the increasingly mature book-and-claim framework and the expansion of demand aggregation schemes. These approaches are expected to channel more capital into clean transportation solutions, accelerating the transition to a sustainable trucking industry.
Uber Freight will continue to help shippers access clean transportation capacity through expanded EV options and advanced tools like the Emissions Dashboard, which provides estimates on shipment-level greenhouse gas emissions. “Recognizing the importance of performance tracking, we will continue to innovate and expand the capabilities of our Emissions Dashboard, empowering shippers to monitor and reduce emissions across their networks with greater precision and insight,” Frankiv says.
Transparency and verification will combat fraud and cargo theft
Fraud and cargo theft remain persistent challenges, but transparency is emerging as a critical weapon in the fight. According to Chris McLoughlin, Uber Freight’s Senior Director of Operations, “The continued push for transparency will be a tool to combat fraud. As the expectation for transparency becomes more and more commonplace it will be harder for the bad actors to use anonymity as a tool to defraud.” The rise in supply chain risks, including fraud but also climate-related disruptions, will necessitate robust contingency planning and stronger partnerships across carrier networks.
Increased adoption of multifactor identity verification tools and data-sharing standards will further bolster fraud prevention. “Supply chain participants won’t be able to hide behind general email domains and VOIP networks, ” McLoughlin says. “More and more participants will be required to supply and allow verification of government-issued identification credentials. For example the FMCSA [Federal Motor Carrier Safety Administration] is moving forward with plans to incorporate ID verification through IDEMIA.”
Bad actors are also targeting overly complex systems, exploiting delays in detecting discrepancies. To combat this, Uber Freight is continuously evolving its processes and tools to stay ahead. By leveraging machine learning algorithms and building strong relationships with law enforcement, Uber Freight is not only able to strengthen fraud prevention efforts, but also optimize the chances of recovering stolen freight after a theft occurs.
“The bad actors are constantly altering their behavior,” McLoughlin says. “To remain ahead of them, we must as well.”
To mitigate fraud, companies need to have a comprehensive cargo theft playbook that includes key contacts such as local authorities, insurance providers, and other investigative resources. They also need a best-in-class Transportation Management System (TMS) to connect all nodes of the supply chain, streamline communication, manage costs, and improve service delivery for customers.
Nearshoring and cross-border shipping will help businesses enhance efficiency and control costs
The shift toward U.S. manufacturing in Mexico is set to intensify trade imbalances between the two countries in 2025. “Depending on the region in Mexico, the trade imbalance can go from 4 or 6 northbound shipments per 1 southbound, creating the need to move empties from the interior of Mexico or from the border—even from the interior of the U.S.—to the heavy export markets in Mexico,” explains Carlos Godinez, Vice President of New Business Development and Marketing at Uber Freight Mexico. This imbalance is expected to drive truck freight rate increases, ranging from mid-single digits to double digits, while also pushing shippers to diversify entry points and adopt alternative modes like intermodal and short-sea services to manage costs.
Still, nearshoring offers significant advantages for U.S. consumers, Godinez says, including quicker inventory replenishment, faster transit times, and access to competitively priced, high-quality goods due to logistical efficiencies and trade agreements. But shippers often face challenges navigating Mexico’s tax, labor, and customs compliance regulations. That’s why Godinez emphasizes that reliable logistics partners are essential for this transition, providing technology, multi-modal solutions, and local expertise to streamline operations on both sides of the border. “Uber Freight supports shippers with managed and capacity solutions, TMS, and customs platforms, backed by $750 million FUM in Mexico, more than 1,100 full-time employees, 10 offices, and over 16 years of experience in the country,” says Godinez.
The benefits of nearshoring go beyond logistics, offering access to Mexico’s competitive workforce and growing economy, as well as reduced lead times to serve the U.S. market compared to Asia. By manufacturing closer to home, businesses can enhance efficiency, control costs, and better meet customer demands.
Freight supply and demand could stabilize in late 2025 as economic conditions shift
Economic forces will play a pivotal role in shaping freight demand in 2025. Mazen Danaf, Uber Freight’s Staff Economist, foresees improvement in the latter half of the year, if federal fund rates lower. “As mortgage rates potentially decrease, related freight sectors, such as furniture and home improvement, may see increased activity, further driving demand,” Danaf notes.
On the supply side, trucking capacity is expected to remain stable, with the market showing little movement after a period of overcapacity. But shifts in tariff policy could influence demand. “An increase in tariffs could lead to increased domestic manufacturing activity and freight demand,” Danaf says. “However, this growth would likely come with the trade-off of inflation and higher costs, which are typically associated with tariff adjustments.”
E-commerce remains a key driver of freight volume, with its share of consumer spending increasing from 19% to 20% last year. “While this may seem like a small percentage gain, it translates to a 4% increase in freight volumes, demonstrating the sector’s growing importance,” says Danaf. This steady upward trend is likely to continue in 2025, providing additional support for freight demand.
The road ahead
As our team’s insights illustrate, 2025 is poised to be a year of innovation for the freight and logistics industries. With advancements in autonomous technology, sustainability, fraud prevention, and economic resilience, the path forward is clear: a more efficient, secure, and sustainable supply chain.
To better navigate the future of logistics, arm yourself today with dynamic, proactive transportation management strategies.
