By Christian Wilhelm, Founder and Managing Director at Shipsta by Freightos. Connect on LinkedIn here.

Having spent years observing the rapid evolution of the logistics industry, I’ve witnessed just how swiftly the landscape can shift. In 2025, freight procurement will transform driven by key trends and challenges, prompting companies to adapt strategically.

After taking time to reflect on the industry’s rapid changes, I wanted to share my thoughts and break down the most critical trends,  and provide actionable insights to help you stay ahead.

Geopolitical Complexity: Resilience is the New Currency

The Challenge:

The last few years have taught us that global supply chains are fragile. In 2025, successful procurement will be about building resilience, not just efficiency. 

Remember when ships started rerouting around the Cape of Good Hope? The Red Sea crisis is a new reality that has increased shipping times and costs dramatically, with some routes experiencing up to 30% longer transit times and significant cost increases.

Trends:

• Increasing global trade tensions

• Unpredictable shipping routes

• Higher transportation costs due to geopolitical conflicts

• Constant need for route adaptation

Action Plan:

• Diversify your supply chains: Create multiple transportation pathways that can quickly pivot when global tensions flare up.

• Build resilient risk management: Develop comprehensive contingency plans that go beyond traditional thinking. This means having backup routes, alternative providers, and flexible contracts that can withstand sudden global changes.

Sustainability Takes Center Stage

The Challenge:

Environmental considerations are moving from corporate social responsibility slides to core procurement strategy. In 2025, your sustainability metrics will be as important as your cost metrics.

According to The 2024 CDP Supply Chain Report: 65% of global companies now consider sustainability critical in procurement strategies.

Trends:

• Increased focus on Scope 3 emissions tracking

• Growing demand for green logistics solutions

• Regulatory pressures for environmental responsibility

Action Plan:

• Implement comprehensive emissions tracking: Develop a robust system to track and report your entire logistics carbon footprint.

• Partner strategically: Collaborate with eco-conscious LSPs. Look beyond price and prioritize partners with genuine green credentials.

• Invest in green technologies: Explore sustainable aviation fuel, electric and hydrogen-powered vehicles, and other innovative green transportation solutions.

• Create transparent reporting mechanisms: Develop clear, accessible reports that showcase your sustainability efforts.

  Source: Optimizing procurement strategies for 2025

Data and Technology: Your Strategic Superpower

The Challenge:

Traditional methods are dead. Data-driven decision-making has become indispensable and companies are leveraging advanced analytics tools to transform procurement processes, making them more efficient, cost-effective, and resilient.

Trends:

• AI is transforming procurement by analyzing vast amounts of data to uncover patterns, anomalies, and opportunities. Did you know 72% of procurement leaders are prioritizing AI integration? 

• Real-time data analytics for enhanced visibility, faster response times, and more informed decision-making.

• Predictive procurement strategies to forecast demand, anticipate disruptions and optimize routes. 

• Automating manual processes like RFQs, contract management, and performance monitoring will allow teams to focus on strategic tasks and speed up operations.

Action Plan:

• Build a data digitization infrastructure: Create a single, comprehensive source of truth for your freight rate data.

• Invest in advanced analytics tools: Don't just collect data, understand it. Implement tools that can provide predictive insights, by doing that you can forecast freight rates based on historical data and market trends.

• Embrace AI strategically: Start with pilot projects. AI-driven insights can help you develop dynamic pricing strategies, automate risk assessments, and optimize procurement contracts in ways that were impossible just a few years ago.

Cost Management in an Uncertain Market

The Challenge:

With economic uncertainties and rising costs, it’s essential to implement innovative cost management strategies to maintain competitiveness.

Trends:

• Volatile fuel prices that require proactive measures

• Need for dynamic pricing models

• Increasing transportation costs

• Demand for flexible contract structures

Action Plan:

• Fuel hedging strategies: Lock in fuel prices through strategic contracts to minimize unexpected cost spikes.

• Energy efficiency optimization: Reduce empty miles, optimize load planning, and invest in fuel-efficient technologies (electric or hydrogen-powered vehicles to reduce long-term fuel dependencies)

• Freight mode optimization: Choosing the right freight mode can significantly reduce transportation expenses. Shifting to intermodal options and consolidating shipments can provide more cost-effective solutions.

• Dynamic pricing tools: Monitor freight market rates in real-time to secure competitive pricing.

• Adaptive contracts: Use flexible contracts of hybrid contract models that combine fixed rates with flexible spot rate options.

• Collaborative cost management: Work closely with LSPs to create fuel surcharges mechanisms that align with market trends and promote transparency in fuel cost sharing.

• Strategic partnerships: Foster closer relationships with a select group of LSPs to secure priority capacity, and favorable rates during peak times and negotiate discounts for consistent, high-quality service.

Source: Optimizing procurement strategies for 2025

Strategic Supplier Relationships: Your Competitive Advantage

The Challenge:

As the logistics industry continues to change rapidly, the relationship with your LSPs is becoming more critical than ever.  The era of transactional relationships is over. Your success now depends on deep, strategic partnerships that prioritize collaboration, transparency, and mutual value creation.

Trends:

• Enhanced transparency

• Improved negotiation outcomes. When providers view you as a strategic partner rather than just another customer, they're more likely to:

  • Offer more competitive rates

  • Provide preferential treatment

  • Share market insights

  • Be more flexible during challenging periods

• Flexibility in contracts. Given the uncertainties of global markets, flexibility will be a critical feature of freight contracts. 

• Faster problem resolution

Action Plan:

• Look beyond price: Choose partners based on shared values, technological capabilities, and long-term vision.

• Invest in communication: Create regular, open communication channels with key LSPs. Trust is the foundation of any strong relationship, and advanced digital platforms now enable real-time data sharing, helping procurement professionals and providers make informed decisions together.

• Develop shared performance metrics: Create KPIs that align both parties' interests. 

• Build trust through transparency: Share market insights, challenges, and opportunities with your strategic partners.

The Road Ahead: Thriving in 2025

Freight procurement in 2025 requires a blend of technological adoption, sustainability initiatives, and strong human relationships. I’m confident that those who innovate and adapt will not only succeed but set new standards for the industry.

Ready to elevate your freight procurement strategy?