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Fibre2Fashion
22-05-2025
- Business
- Fibre2Fashion
US imports to surge amid temporary China tariff relief: ITS Logistics
Confirming earlier projections of a steep decline in imports following tariff increases on Chinese goods, ITS Logistics has released the May forecast for its US Port/Rail Ramp Freight Index. The index also highlights growing operational stress at rail ramps in key regions, as shippers redirect front-loaded inventory through interior point intermodal (IPI) routes. Compounding these challenges, cargo theft at rail interchange points is emerging as a serious concern for shippers and logistics providers heading into 2025. Recently, trade officials announced that the US and China agreed to a temporary tariff reduction, with the US lowering tariffs from 145 per cent to 30 per cent and China lowering its tariffs on US goods to 10 per cent from 125 per cent. With the new rates officially in place for the next 90 days, shippers are eager to restart imports, replenish inventories, and prepare for upcoming holiday seasons. The sudden surge in demand and uncertainty surrounding long-term availability of Chinese imports has the potential to spur another frontloading event that drives an early start to peak season for businesses in key industries like retail, the company said in a press release. 'I have clients with thousands of containers pre-loaded in China that is ready to come in,' said Paul Brashier, vice president of global supply chain at ITS Logistics . Over the next four to six weeks, Brashier said he expects a surge of containers, calling the 90-day pause 'the pivotal moment for supply chain planning out of China.' ITS Logistics' May forecast confirms a sharp import decline due to China tariffs, but a temporary 90-day reduction is expected to trigger a surge in shipments and an early peak season. Shippers face growing rail congestion, equipment shortages, and rising cargo theft. The index tracks port and rail activity across key US regions, offering insights into supply chain disruptions and capacity trends. 'Shippers should be prepared to increase trucking and equipment capacity immediately to ensure they can withstand volatility and get their goods to market on time,' Brashier continued. Adding to emerging market challenges, industry experts are reporting a surge in cargo theft. Criminal networks in the US and internationally are exploiting weaknesses in current supply chain systems, as well as technology intended to improve overall efficiency, to steal freight. 'Using IPI offers more storage elasticity and allows shippers to avoid 3PL storage fees on front-loaded inventories,' Brashier explained. 'However, chassis availability and congested ramp operations are becoming more frequent, and theft at interchanges between rail providers is a serious ongoing concern.' Amid industry professionals seeking ways to best navigate the current supply chain disruptions, ITS advised companies to prepare for an early kick-off to peak season that lasts through Q3. Additionally, as the supply chain industry enters Q4, tax policy, deregulation, and federal reserve policy could spur economic growth that drives higher year-over-year volumes. ITS Logistics offers a full suite of network transportation solutions across North America and distribution and fulfilment services to 95 per cent of the US population within two days. These services include drayage and intermodal in 22 coastal ports and 30 rail ramps, a full suite of asset and asset-lite transportation solutions, omni-channel distribution and fulfilment, LTL, and outbound small parcel. The ITS Logistics US Port/Rail Ramp Freight Index forecasts port container and dray operations for the Pacific, Atlantic, and Gulf regions. Ocean and domestic container rail ramp operations are also highlighted in the index for both the West Inland and East Inland regions. Fibre2Fashion News Desk (RR)
Yahoo
20-05-2025
- Business
- Yahoo
ITS Logistics report shows surge stressing US rail ramps after tariffs slashed
Tariff adjustments and operational constraints are shadowing the U.S. domestic supply chain, a new forecast finds. The May forecast for the ITS Logistics US Port/Rail Ramp Freight Index confirms previously projected steep import declines following tariff increases on Chinese goods, while highlighting emerging issues at rail facilities. There are also alarming cargo theft trends that are expected to impact the industry throughout 2025. The latest index data validates earlier projections of significant import volume reductions resulting from heightened tariffs on Chinese goods. Simultaneously, rail ramps in strategic regions are experiencing operational pressure as shippers increasingly utilize interior point intermodal (IPI) routing to manage frontloaded inventory. This shift in logistics strategy has created new operational challenges while exposing vulnerabilities in the supply stress levels are elevated for Chicago; Memphis and Nashville, Tennessee; Louisville, Kentucky; Atlanta; Columbus, Ohio; and Toronto. Ramps through the Atlantic, Pacific, Western and Gulf regions show normal ramp operations. Negotiators on May 12 announced a temporary tariff reduction agreement between the U.S. and China. Under this 90-day arrangement, the U.S. has lowered tariffs from 145% to 30%, while China has reduced duties on U.S. goods from 125% to 10%. This adjustment has created immediate market optimism, with shippers eager to resume imports, replenish depleted inventories and prepare for upcoming holiday seasons. The sudden surge in demand, coupled with uncertainty about long-term availability of Chinese imports, appears likely to trigger another frontloading event, potentially driving an early start to peak season for key industries, particularly retail. 'I have clients with thousands of containers pre-loaded in China that are ready to come in,' said Paul Brashier, vice president of global supply chain at ITS, in a note. Over the next four to six weeks, Brashier expects a surge of containers, calling the 90-day pause 'the pivotal moment for supply chain planning out of China.'Preparation for peak season With increasing evidence pointing toward accelerated shipping activity, industry experts recommend immediate action to secure necessary resources. 'Shippers should be prepared to increase trucking and equipment capacity immediately to ensure they can withstand volatility and get their goods to market on time,' said Brashier. Companies that fail to secure adequate transportation and equipment capacity risk significant delays and potential inventory shortages during what appears to be developing into an earlier and potentially more extended peak season than initially anticipated. Emerging challenges in cargo theftCompounding these market dynamics is a troubling rise in cargo theft. Criminal networks in both domestic and international markets are increasingly exploiting vulnerabilities in supply chain systems, including technology meant to enhance operational efficiency. Recent media reports estimate annual losses from cargo theft approaching or exceeding $1 billion. Highway, a leader in fraud prevention solutions, reported blocking more than 914,000 fraud attempts in 2024, with over 400,000 blocked in Q1 of 2025 alone — a dramatic increase highlighting the escalating sophistication of criminal operations targeting freight movements. Association of American Railroads data revealed a 40% year-over-year increase in container theft incidents in 2024, creating additional concerns as more shippers utilize IPI routing. In the months before April's tariff announcement, many companies redirected frontloaded inventories from congested ports to inland rail facilities, inadvertently creating new bottlenecks at these locations where cargo theft is now surging. 'Using IPI offers more storage elasticity and allows shippers to avoid 3PL storage fees on frontloaded inventories,' Brashier said. 'However, chassis availability and congested ramp operations are becoming more frequent, and theft at interchanges between rail providers is a serious ongoing concern.' This growing security crisis has prompted industry stakeholders to demand federal intervention as vulnerabilities in supply chain operations continue to increase. ITS said companies should prepare for an early peak season that will likely extend throughout the third quarter. Organizations should implement comprehensive security measures, particularly for high-value shipments moving through rail interchanges. Looking ahead to Q4, additional market factors including tax policy changes, deregulation initiatives and Federal Reserve policy adjustments could potentially stimulate economic growth, driving higher year-over-year volumes and creating additional capacity challenges. Subscribe to FreightWaves' Rail e-newsletter and get the latest insights on rail freight right in your inbox. Find more articles by Stuart Chirls continues work to expand capacity and fluidity in Vancouver Southern California international intermodal volume sees weekly decline State of Freight takeaways: Freight crash may turn into sudden revivalCoal, grain keep US rail freight ahead of 2024 levels The post ITS Logistics report shows surge stressing US rail ramps after tariffs slashed appeared first on FreightWaves.
Yahoo
15-05-2025
- Business
- Yahoo
ITS Logistics May Port Rail Ramp Index: Heavy Import Volumes and Pent-up Demand from China Set to Pull Forward Peak Retail Season and Cause Transportation Challenges for U.S.
--The anticipated disruptions and capacity challenges compound the fraud crisis plaguing cargo and freight operations. -- ITS Logistics May Port Rail Ramp Index RENO, Nev., May 15, 2025 (GLOBE NEWSWIRE) -- ITS Logistics today released the May forecast for the ITS Logistics US Port/Rail Ramp Freight Index. This month's index confirmed the previous projections of a steep import drop-off following tariff increases on Chinese goods. In addition, rail ramps in key regions are experiencing operational stress as shippers redirect front-loaded inventory to interior point intermodal (IPI) routing, all while cargo theft at rail interchange points shows distressing trends for shippers and providers in 2025. On Monday, trade officials announced that the U.S. and China agreed to a temporary tariff reduction, with the U.S. lowering tariffs from 145% to 30% and China lowering its tariffs on U.S. goods to 10% from 125%. With the new rates officially in place for the next 90 days, shippers are eager to restart imports, replenish inventories, and prepare for upcoming holiday seasons. The sudden surge in demand and uncertainty surrounding long-term availability of Chinese imports has the potential to spur another frontloading event that drives an early start to peak season for businesses in key industries like retail. 'I have clients with thousands of containers pre-loaded in China that is ready to come in,' said Paul Brashier, Vice President of Global Supply Chain at ITS Logistics. Over the next four to six weeks, Brashier says he expects a surge of containers, calling the 90-day pause 'the pivotal moment for supply chain planning out of China.' Brashier continued, 'Shippers should be prepared to increase trucking and equipment capacity immediately to ensure they can withstand volatility and get their goods to market on time.' Adding to emerging market challenges, industry experts are reporting a surge in cargo theft. Criminal networks in the U.S. and internationally are exploiting weaknesses in current supply chain systems, as well as technology intended to improve overall efficiency, to steal freight. CNBC recently reported industry-wide losses estimated to be close to $1 billion or more a year. A leader in fraud prevention solutions, Highway, cited in its quarterly Freight Fraud Index that the company blocked more than 914,000 fraud attempts in 2024, and over 400,000 were blocked in Q1 of 2025 alone. Additionally, the Association of American Railroads (AAR) data showed a 40% year-over-year increase in container theft incidents in 2024. In the months preceding the April tariff announcement, shippers turned to IPI to move front-loaded goods away from congested ports — only to create new chokepoints at inland rail ramps, where cargo theft is now surging. This is occurring as industry stakeholders demand federal intervention as the current freight fraud crisis escalates, leaving vulnerable supply chains at risk. 'Using IPI offers more storage elasticity and allows shippers to avoid 3PL storage fees on front-loaded inventories,' Brashier explained. 'However, chassis availability and congested ramp operations are becoming more frequent, and theft at interchanges between rail providers is a serious ongoing concern.' Amid industry professionals seeking ways to best navigate the current supply chain disruptions, ITS advises companies to prepare for an early kick-off to peak season that lasts through Q3. Additionally, as the supply chain industry enters Q4, tax policy, deregulation, and federal reserve policy could spur economic growth that drives higher year-over-year (YOY) volumes. ITS Logistics offers a full suite of network transportation solutions across North America and distribution and fulfillment services to 95% of the U.S. population within two days. These services include drayage and intermodal in 22 coastal ports and 30 rail ramps, a full suite of asset and asset-lite transportation solutions, omnichannel distribution and fulfillment, LTL, and outbound small ITS Logistics US Port/Rail Ramp Freight Index forecasts port container and dray operations for the Pacific, Atlantic, and Gulf regions. Ocean and domestic container rail ramp operations are also highlighted in the index for both the West Inland and East Inland regions. Visit here for a full comprehensive copy of the index with expected forecasts for the U.S. port and rail ramps. About ITS LogisticsITS Logistics is one of North America's fastest-growing, asset-based modern 3PLs, providing solutions for the industry's most complicated supply chain challenges. With a people-first culture committed to excellence, the company relentlessly strives to deliver unmatched value through best-in-class service, expertise, and innovation. The ITS Logistics portfolio features North America's #18 asset-lite freight brokerage, the #12 drayage and intermodal solution, an asset-based dedicated fleet, an innovative cloud-based technology ecosystem, and a nationwide distribution and fulfillment network. Media ContactAmber GoodLeadCoverageamber@ A photo accompanying this announcement is available at in to access your portfolio
Associated Press
20-03-2025
- Business
- Associated Press
ITS Logistics March Port Rail Ramp Index: Trucking Capacity-to-Demand Ratio Could Increase Rates for Dray and Rail Capacity
RENO, Nev., March 20, 2025 (GLOBE NEWSWIRE) -- ITS Logistics today released the March forecast for the ITS Logistics US Port/Rail Ramp Freight Index. This month, the index reveals that Los Angeles/Long Beach (LA/LB) import volumes remain strong following the Lunar New Year, and there are signs that the trucking capacity-to-demand ratio may soon start pushing rates up for dray and rail capacity. In addition, equipment availability for exports is still an issue affecting individual ocean carrier lines throughout North America. 'Should rates begin to increase, this may affect truckers' ability to honor dedicated pricing and tender acceptance in Q2,' said Paul Brashier, Vice President of Global Supply Chain for ITS Logistics. 'It could be alleviated as more volumes return to the U.S. East & Gulf Coasts, now that labor strikes are no longer a concern. With the return of volumes back to the U.S. East & Gulf Coasts, there has been a tightening of capacity and terminal congestion at the major gateways of New York/New Jersey, Norfolk, Savannah, and Houston.' On March 11, the International Longshoremen's Association (ILA) signed an extension to its Master Contract with the United States Maritime Alliance (USMX). This agreement is set to last until September 30, 2030, and includes workforce protection guidelines that require a detailed explanation of the technology that will be used and its effects on capacity and efficiency. The agreement also requires determination on the manning for new equipment to be included with stipulations that new work created by the technology be identified with training included for workers. Despite this new agreement, the supply chain continues to experience challenges, including the current equipment availability concerning exporters, which has been a lingering concern thus far in 2025. 'This latest supply chain challenge in equipment availability that ITS is closely monitoring is driven primarily by equipment imbalance and rail operations,' continued Brashier. 'Rail operations are seeing similar sporadic challenges regionally. LA/Long Beach IPI dwell remains high for imports moving east. That, combined with rail transit delay and lower inland transportation costs, are pushing some shippers to move imports back to the ports on the East Coast and draying inland to avoid IPI legs.' As concerns over labor strikes ease, import volumes have begun redistributing from the West back to East and Gulf Coast ports. However, the United States Trade Representative's (USTR) recent proposal targeting Chinese vessels threatens to disrupt U.S. port operations once again. Announced in late January, the proposal includes fees targeting Chinese vessel operators, Chinese-built vessels, and operators with a certain percentage of vessels ordered from Chinese shipyards. Research from the World Shipping Council (WSC) has found that the proposal could add up to $3.5 million in fees per individual port call to 98% of vessels entering the U.S. The WSC notes that ocean carriers have already indicated they may eliminate service to smaller ports to avoid these costs—a move that would severely impact regional logistics ecosystems and exacerbate congestion at major North American ports. ITS Logistics offers a full suite of network transportation solutions across North America and distribution and fulfillment services to 95% of the U.S. population within two days. These services include drayage and intermodal in 22 coastal ports and 30 rail ramps, a full suite of asset and asset-lite transportation solutions, omnichannel distribution and fulfillment, LTL, and outbound small parcel. The ITS Logistics US Port/Rail Ramp Freight Index forecasts port container and dray operations for the Pacific, Atlantic, and Gulf regions. Ocean and domestic container rail ramp operations are also highlighted in the Index for both the West Inland and East Inland regions. Visit here for a full comprehensive copy of the Index, with expected forecasts for the U.S. port and rail ramps. About ITS Logistics Media Contact
