Trucking CFOs, Leaders Eye 2025 Recovery With Tight Budgets

Fleets like Garner Trucking have been keeping an eye on costs while preparing for the budget challenges for the new year. (Garner Trucking)

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Looking toward the new year, carriers are grappling with a tough freight market, relying on cost-cutting measures, operational efficiency and strategic revenue opportunities to stay ahead.

“We are pinching every dime, looking at every penny and finding ways to get more efficient,” said Dean Rigg, chief financial officer of Mesilla Valley Transportation, which is based in Las Cruces, N.M., and ranks No. 73 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.

Sherri Garner Brumbaugh, president and CEO of Garner Trucking and a former chair of American Trucking Associations, said some days she is hanging on by a fingernail in the current freight market.

“We’ve tried to be prudent in our spending but thoughtful with paying our employees — taking care of our employees first,” she said. “There is no extra cash to give away this year. It is all going back into the business.”

However, trucking leaders told Transport Topics that they are cautiously optimistic conditions will improve in 2025.

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Grabell 

“While it remains difficult to anticipate the magnitude of the impact of tariffs and other economic policies on our industry, we feel confident that we’re nearing the bottom of the freight downturn,” said NFI CFO Steven Grabell. The company is based in Camden, N.J., and ranks No. 15 on the TT100.

He expects the current low-price environment to lead to a reduction in trucking capacity, as some smaller or marginal players may not be able to sustain operations. The reduction will help balance supply and demand.

Stan Kolev, CFO of ITS Logistics, said there is a general notion that the freight recession will begin to subside.

“We believe that the market is going to start seeing a certain level of recovery, but we will remain laser sharp on controlling costs, capturing more shared wallet with existing customers and penetrating different verticals,” he said. “I don’t think any CFO is going to tell you any different.”

Controlling Costs

Mesilla Valley Transportation, which has about 1,500 employees, has put all its expenses under a microscope, especially when renewing contracts. “When it gets like this, there’s no way to go up, so you have to figure out how to dice it down,” Rigg said.

During a recent Microsoft renewal, MVT staff completed a total analysis and audit of its account and users that saved between $75,000 and $100,000. The company also did a close review of its Verizon account. “We saved $10,000 a month by getting rid of old lines and putting them against somebody else,” Rigg said.

Boyle Transportation has increased its use of data to optimize routes and manage its fleet, reducing fuel consumption and improving asset utilization to keep operating expenses in check.

“We utilize advanced telematics and route optimization to control fuel consumption and fleet wear, which helps manage both operating and maintenance costs effectively,” said Michael Lasko, vice president of environmental health and safety and quality for Boyle Transportation.

Some costs are beyond carriers’ short-term control. “However, we remain focused on operating efficiently; keeping our drivers actively generating revenue, minimizing turnover and overhead, and promoting safe practices,” Grabell said, adding that drivers and other employees play a crucial role in optimizing operations and navigating the current market.

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Sherri Garner Brumbaugh and Ben Brumbaugh pose with a Garner tractor. (Garner Trucking)

Drivers can significantly impact fuel consumption, and carriers said they are incentivizing drivers to help improve their miles per gallon.

“We watch our drivers’ empty and out-of-route miles along with idle time,” Garner Brumbaugh said. “We call to task those drivers that are underperforming and remove them from our rank and file if they are contributing to preventable safety events under their control.”

Safety is always a priority, not only because it is the right thing to do but also because it contributes to the bottom line. “Rising insurance costs, partly driven by industry nuclear verdicts, have further underscored its importance to our financial health,” Grabell said.

Safety investments help protect drivers and assets while also controlling insurance premiums.

“In response to skyrocketing insurance costs driven by lawsuit abuse and predatory litigation financing targeting trucking companies, we’ve strengthened our safety and risk management programs,” Lasko said.

Boyle Transportation allocates its budget to support a mix of advanced telematics, driver-assist technology and comprehensive training programs. The carrier hasn’t had a preventable recordable accident since 2019.

Garner Brumbaugh said Garner Trucking, based in Findlay, Ohio, invests in new safety technology as OEMs roll out new solutions.

“On a typical vehicle this could add $5,000 to $6,000 in increased expense,” she said. The additional cost can affect the company’s overall equipment purchase. “It may mean purchasing one or two less trucks in a cycle.”

In 2024, Garner Trucking bought “just enough” equipment, Garner Brumbaugh said. However, the fleet could purchase more if it made sense financially.

“I’m not sure if we will buy any new equipment in 2025,” she explained. “If we do, it will be less than what we need. That is, if I need 25 trucks, I may only buy 10 or 15.”

Interest rates and the long-term cost of capital have affected fleets’ buying decisions. When interest rates were low, Rigg took advantage of longer-term capital, which helped the company, but that has changed. “There were times the cost was so high, I was either not bringing in new equipment or paying cash for it,” he explained.

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Kolev 

ITS Logistics made a conscious decision several years ago to realign the number of tractors and trailers in its fleet, reducing its size. “We’re more selective with the freight we’re moving, particularly with our fleet,” Kolev said. “We don’t want to keep assets just to have assets.”

When sourcing capacity, ITS Logistics has focused on buying better. “We use more than 2,000 carriers but most of our freight is moved by a couple hundred carriers we have a strong relationship with,” Kolev said.

He added that ITS Logistics focuses on getting the lowest price possible without sacrificing operations. When working with the Fort Worth Economic Development District on a new transportation center, he was able to get significant tax benefits. “Negotiating real estate rates and targeting available tax abatements adds up to a significant amount of cost,” he said.

Finding the Right Solution

Dwight Bassett, a fractional CFO who consults with the trucking industry, recommends carriers look at fixed costs when searching for ways to save. The largest fixed cost is typically nondriver payroll.

“Make sure you have the right people and the right number of people working for you,” he said, noting that most companies have more staff than needed, especially as technology improves.

NFI Industries is implementing new technologies daily, from upgraded software and enhanced data analytics to robotics, across both operations and back-office functions.

Grabell noted that in its financial services group, the team aims to automate most accounting entries, cash application, reporting and billing.

“While long-standing partnerships and personal connections remain central to NFI’s value, we’re equally invested in technology and businesses like Transfix to enhance our real-time pricing and market insights,” he said.

Rigg said technology enables real-time reporting that drives business decisions, explaining that if carriers don’t know where they are “almost instantaneously,” they won’t be able to react.

“Knowing where the company is at all times gives us the ability to react quicker,” he said. “You can only do that when you have good IT resources.”

Earlier this year, ITS Logistics launched its AI-backed tool, ContainerAI, to manage the flow of containers. It aggregates data in real time and applies machine learning alongside historical context to make predictions and increase visibility.

“It has decreased the time of execution of the loads. Our teams are moving loads and servicing containers much faster,” Kolev said. “This allows the production teams to focus on servicing the customer more efficiently rather than managing documentation flow.”

Boyle Transportation, based in Billerica, Mass., has been integrating advanced technologies, including AI, to increase back-office efficiency. “We’re using AI-driven tools to streamline administrative tasks such as document processing, compliance checks and data management, which reduces manual workloads and minimizes errors,” Lasko said.

By improving data accuracy and processing speed, AI also supports faster, more reliable service for customers and allows office staff to focus more on high-impact areas, such as customer service and strategic planning, Lasko said.

Technology can improve cash flow, which is critical in a difficult market. “A driver can deliver a load, take a picture of the bill of lading and email it in or connect with a driver app. You can bill it the same day,” Bassett said. “You would be amazed how many people wait two or three days or even a week to bill a load of freight.”

Taking even one or two days out of the billing cycle can make a difference. “That’s a pretty significant amount of cash sitting in your bank account that you can use to run your business rather than running up your line of credit,” Bassett said.

Evaluating Profitability

Bassett also recommended carriers stay on top of their accounts receivable.

“The moment your customer gets past due for an invoice, they should be getting a phone call or an email,” he said. “The majority of our expenses in trucking are paid within seven days.”

For vendors that offer 30-day terms, Bassett advises to use them. “Don’t pay people early. It is really important to aggressively manage your cash situation,” he explained.

MVT has turned to auto-billing on trailer detention and examines the profitability of each customer. “You have to weed and feed. You look at your higher rates and try to get rid of the lower rates if you can,” Rigg said.

Bassett said it is essential for carriers to know who their customers are, their profitability and velocity.

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Bassett 

“Look at how long you’re under one of their loads and how much revenue per load,” he said. “If you’re operating with owner-operators and company drivers, evaluate the profitability of each one of those sites.”

It is also important to know how each customer affects the overall operations. About 80% of Garner Brumbaugh's freight is contracted, and the company has a diverse customer base that helps operations. “When one market may be slow, another is fairly busy,” she said.

Reviewing all customers in the portfolio can sometimes help fill backhauls or determine where to focus sales efforts.

“If you’re deadheading a little too much because a customer slowed down or you lost one, you’ve got to go in and replace them quickly,” Rigg said.

The use of freight brokers to help fill miles has increased, but Bassett said carriers should be strategic about how they use them.

“The load boards are the easy button for our sales teams and there is really no excuse to use them. If you are paying salespeople, they need to be going to the company directly. If not, about 20% of the revenue is going to the freight broker,” he said.

ITS Logistics has added to its commercial team and has a sales strategy in place.

“We have a very capable chief commercial officer. He runs the team and redesigned it to address different verticals,” Kolev said.

Grabell said NFI is fortunate to have strong leadership across its operating businesses, with teams that are financially focused and highly skilled.

“My role is to ensure everyone has the right information to make sound decisions and to help the organization effectively prioritize reinvestment in the business,” he said.