Welcome to The Source — your monthly market intelligence from Source Logistics, where we connect logistics trends to operational strategies you can act on today.
After months of turbulence, supply chains are showing some signs of steadiness – at least for now.
Warehouse vacancy has stabilized, freight rates have found their floor, and the FDA’s proposed FSMA 204 Traceability Rule delay gives you rare breathing room on traceability.
But this is a use-it-or-lose-it moment.
Companies that build smarter visibility now will be the ones who stay compliant and cost-efficient when pressure returns, and with tariff uncertainty still looming, staying vigilant is critical.
Logistics at a Glance – Key Trend Data
The Big Picture for November
Both regulation and capacity have eased at the same time – something rare in this industry.
With traceability deadlines extended and space and freight costs stable, now is the moment to plan proactively instead of reactively.
- Use the FSMA extension strategically. The delay isn’t a pause; it’s a planning window. Map suppliers, clean your EDI data, and pilot EPCIS 2.0 while you can.
- Re-price lanes early. Freight indices suggest a market bottom; carriers are open to long-term or multimodal deals that protect cost predictability into 2026.
- Technology & Fulfillment: Conditions are calmer, but not predictable. Strengthen integrations and fulfillment redundancy now, before tariff volatility or policy shifts reset cost structures.
Operational Insights for November:
Warehousing & Distribution
- Market Insight: The warehouse market has cooled slightly. Developers are pausing new builds, and tenants are renewing space faster than expected – evidence of a sector catching its breath rather than retreating.
- Impact: Leverage is shifting quietly toward tenants who can make quick decisions. A well-timed renewal or overflow add-on now could secure favorable rates well into 2026 when the market heats up again.
- Recommended Focus: Run a short-term capacity review. Keep what you need, right-size what you don’t, and look at opportunities to optimize before rates go back up.
Fulfillment & E-Commerce
- Market Insight: Order volumes have steadied, but tariff fluctuations and parcel surcharges continue to create hidden costs. Many shippers are rediscovering the value of redundant 3PL partners and flexible packaging strategies.
- Impact: Consumers aren’t forgiving delays, but are rewarding transparency. A resilient fulfillment network can absorb cost swings and still deliver reliably through peak season.
- Recommended Focus: Audit your fulfillment footprint for agility, not just speed. Cross-train teams, diversify parcel carriers, and automate returns handling wherever possible.
Transportation
- Market Insight: Freight activity remains subdued but stable. Spot truck rates have flattened, and shippers are finally seeing consistency in both load acceptance and transit times – the kind of predictability missing for nearly two years.
- Impact: This is the pricing plateau logistics leaders wait for. Locking in multi-quarter terms now cushions you from rate rebounds or capacity squeezes next year.
- Recommended Focus: Revisit your contract portfolio. Blend regional carriers, intermodal, and lane considerations to extend today’s favorable conditions into 2026.
Technology
- Market Insight: AI-powered forecasting and visibility tools are expanding quickly, with new platforms helping shippers track perishables, predict demand shifts, and manage labor volatility.
- Impact: For Food & Beverage and CPG companies, better visibility and predictive analytics mean less waste during harvest and peak season and faster response when weather disrupts supply chains.
- Recommended Focus: Invest in integrations that unify warehousing, transportation, and order data; evaluate AI tools that enhance cold chain tracking, demand planning, and compliance automation.
Visibility & Compliance
- Market Insight: The FSMA 204 proposal has bought time, but it’s also clarified expectations: the FDA is signaling that digital traceability will become the new operational standard. Early adopters are moving from pilot to scale with ASN 856 and EPCIS event data.
- Impact: This is less about meeting a deadline and more about modernizing how you manage movement data. Real-time capture will soon be as basic as WMS scanning.
- Recommended Focus: Start integrating event-level visibility within your current systems. Don’t wait for new software – use your existing EDI stack as the foundation for traceability.
Value-Added Services
- Market Insight: Value-added work has become a quiet growth channel. Retailers and brands are using customization – relabeling, kitting, light assembly – to stretch inventory strategies and personalize offerings without long lead times.
- Impact: When planned alongside fulfillment, VAS can offset inventory holding costs and reduce obsolete stock.
- Recommended Focus: Treat VAS as part of your fulfillment rhythm, not a side project. Forecast labor and packaging demand now to turn customization into a consistent margin driver.
What’s Around the Corner?
- FSMA 204 Finalization: The countdown to 2028 officially begins once the FDA confirms its timeline. Start auditing ASN, SSCC, and EPCIS readiness now so implementation feels routine, not rushed.
- Warehouse Pipeline Watch: Regional leverage could shift by mid-2026 as new builds pause and existing space tightens. Review renewals and add flexibility while vacancy remains near 7-8%.
- Freight Floor Forming: Cass, ATA, and DAT data all signal that freight rates have likely bottomed. Now’s the time to secure favorable multi-lane or multimodal agreements before the cycle returns.
- Ocean Outlook: General Rate Increases and blank sailings are creeping back in for the holidays. Pre-book drayage and cross-dock buffers to avoid congestion if volumes spike.
- Technology & Data Readiness: FSMA compliance and customer visibility are converging. Invest in clean integrations and event-level traceability before disparate systems start costing time and trust.
Turn Momentum into Margin
The logistics market isn’t cooling – it’s normalizing.
That’s when strategic moves compound fastest: cleaner data, flexible space, and smarter freight.
Use this season of relative calm to build the visibility and agility that will define your 2026 advantage.
Make the most of the calm before the climb. Talk with Source about your 2026 plan.