Tariff Planning is Taking its Toll

The ever-changing landscape of U.S. trade policy is wreaking havoc on logistics planning. A 25% tariff threat on all imports from Mexico and Canada initially shook the industry before a last-minute suspension eased the burden on key sectors like automotive and electronics. However, uncertainty lingers, with $1 billion worth of daily imports still facing increased costs. This tariff turmoil has contributed to a downturn in trans-Pacific container rates, which have plummeted 40% compared to last year.

Despite a 12% surge in U.S. ocean imports from November to February due to frontloading, the market is now cooling. Rates to the U.S. West Coast have dropped to $2,660 per FEU, and Asia-Europe prices are following suit. With looming deadlines on trade decisions and regulatory shifts, the logistics industry remains in flux.

TLC is staying ahead of the game, leveraging strategic planning to minimize cost impacts and keep freight moving efficiently. Want to safeguard your supply chain? Reach out today.

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