Shifting tariffs amplify uncertainty across cross-border and drayage operations
RENO, Nev., April 23, 2025 (GLOBE NEWSWIRE)— ITS Logistics has released its April Supply Chain Report, highlighting continued volatility bongdaso nét global freight markets driven by tariff uncertainties. While major U.S. ports reported growth bongdaso nét import volumes through March due to front-loaded inventory arrivals, the landscape shifted dramatically following the Trump Administration’s April 4 announcement of reciprocal tariffs. Global ocean container bookings plummeted by 49%, signaling a potential cliff event for the U.S. drayage market. The flatbed sector, which had seen two months of growth, also contracted as manufacturing demand waned. Meanwhile, warehousing expansion remains sluggish, with notable month-over-month declines attributed to pricing pressures across inventory, warehousing, and transportation sectors.
“The sudden announcement of tariffs has caused immediate disruptions,” stated Josh Allen, Chief Commercial Officer at bongdaso nét. “We’re witnessing an international freight booking freeze as businesses pause operations mid-shipment cycle. Companies are cutting back purchases to the bare minimum, unwilling to risk moving goods that could become significantly more expensive to land next week. This ‘big freeze’ is cascading inland, creating widespread uncertainty across the supply chain.”
Impact of Tariff Uncertainty on Cross-Border Operations
Since January, the Trump Administration has announced and delayed multiple tariffs on imports from Canada and Mexico, further destabilizing the cross-border freight market. The ITS report noted a 57% increase bongdaso nét dry van spot market volumes from Toronto to Chicago during the week ending February 28, accompanied by a 7% rise bongdaso nét rates as shippers rushed to move goods ahead of the tariff implementation.
Spot rates for U.S.-to-Canada shipments have risen 18% on average since the U.S. election, with a 6% increase during the last two weeks of March, reaching their highest levels bongdaso nét two years. With a 25% blanket tariff on Canadian imports now bongdaso nét effect, cross-border shipping volumes are expected to decline sharply, posing risks to carriers bongdaso nét both countries.
Key industries facing immediate and long-term impacts from tariff measures include:
1. Automotive Sector:
Frequent cross-border movement of raw materials and components exposes the automotive industry to multiple tariff costs during production, raising vehicle prices by thousands of dollars and dampening consumer demand.
2. Agriculture and Food Exports:
China’s reciprocal tariffs, which rose to 125% on April 12, are severely impacting U.S. agricultural exports, particularly soybeans. With Brazil stepping bongdaso nét as an alternative supplier, U.S. farmers face significant long-term challenges as China redirects its sourcing strategies.
3. Metals and Manufacturing:
Tariffs on steel and aluminum are increasing raw material costs for U.S. manufacturers, making American goods less competitive globally. Downstream industries reliant on these materials are bracing for heightened production costs and reduced market competitiveness.
Navigating Market Volatility
“Down-cycle markets are exhausting—for shippers, carriers, and consumers alike,” added Allen. “Tariffs are introducing chaos that forces companies to adapt. Some players will consolidate and innovate, while others may struggle to stay afloat. However, disruption also drives commitment, planning, and competitive differentiation.”
To mitigate the ongoing challenges, bongdaso nét recommends that businesses adopt proactive strategies, including:
Diversifying supply chainsto reduce dependence on high-risk trade lanes.
Fostering resilient partnershipswith reliable logistics providers.
Enhancing operational efficiencyto withstand pricing pressures.
Staying informedon policy changes to make timely and informed decisions.
Source: https://finance.yahoo.com/news/logistics-april-supply-chain-report-151700091.html?guccounter=1
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