ITS Logistics has published its April Supply Chain Report, revealing ongoing uncertainties in global supply chains that may hinder the recovery of the freight market projected for 2025. The report highlights that tariff uncertainties continue to create volatility in cross-border operations and drayage markets. As the U.S. saw an influx of front-loaded inventory through March, most major ports experienced increases in import volumes. However, following the Trump Administration’s announcement of reciprocal tariffs in early April, global ocean container bookings plummeted by 49%.
This situation has set the U.S. drayage market up for potential instability, while the flatbed market has contracted after two months of growth due to declining demand in manufacturing. Additionally, warehousing growth has stagnated, witnessing a month-over-month decline as pricing contractions impact inventory, warehousing, and transportation sectors. Josh Allen, Chief Commercial Officer at ITS Logistics, commented on the immediate disruptions caused by the tariffs. “A widespread booking freeze across international freight is evident as businesses scale back orders in the midst of shipments.
Companies are minimizing purchases to avoid the risk of incurring higher costs in the near future,” he explained. The report notes that the Trump Administration has introduced and postponed several tariffs on imports from Canada and Mexico since January, further complicating the market dynamics. For instance, during the week ending February 28, dry van spot market volumes from Toronto to Chicago surged by 57%, leading to a 7% rise in rates as shippers hurried to move products. As the blanket tariffs on Canadian imports take effect, cross-border shipping volumes risk a sharp downturn, jeopardizing both U.S. and Canadian carriers.
Industries notably impacted by these evolving tariff measures include automotive, agriculture and food exports, as well as metals and manufacturing. Companies in these sectors must navigate heightened costs and potential declines in demand due to tariffs on raw materials, as well as competition from alternative suppliers like Brazil for agricultural products. In addressing these tumultuous market conditions, Allen emphasized the necessity for businesses to adapt and commit, warning that without action, the entire logistics system risks stagnation. As we look toward 2025, ITS Logistics recommends that businesses diversify their supply chains, cultivate strong partnerships, enhance internal efficiencies, and keep a close eye on policy changes.
ITS Logistics provides comprehensive transportation solutions across North America, ensuring rapid distribution to 95% of the U.S. population within two days. Their services encompass drayage and intermodal in 22 coastal ports and 30 rail ramps, among others. The monthly Supply Chain Report serves as an essential resource for ITS’s employees, partners, and clients, offering valuable industry insights and market updates.