Latest news with #ITSLogistics
Yahoo
22-05-2025
- Business
- Yahoo
Trucking company exits reach 12-month high
The number of trucking businesses leaving the market came in at 7,474 in April, the highest in 12 months and a 26% increase compared to March, according to ITS Logistics' May ITS Supply Chain Report. Ongoing volatility in the global supply chain is driving high market turnover and creating opportunities for freight fraud, Josh Allen, ITS Logistics' chief commercial officer, said. 'Extreme turnover like we're seeing in today's capacity market creates an environment ripe for fraud, which is already a huge issue for shippers who don't have an established network of trusted logistics providers,' Allen said in a news release. SONAR's net carrier revocations data ( shows motor carrier authority exits have averaged more than 1,500 per week since Jan. 1, nearly 8% higher than for the same period in are a measure of truckload capacity exits as carriers lose their licensing to haul freight in the U.S. The elevated revocations could be a sign that conditions are still challenging for many carriers. While carrier exits reached a 12-month high in April, new carrier authorities jumped 30% year over year in the month and 48% from March to April. 'Spring is typically when the spot market sees more carriers join, and last month was no exception – despite larger freight market trends,' Allen said. 'Rates saw marginal movement for both reefer and dry vans, reflecting soft demand in key seasonal industries like food service and home construction. However, a forthcoming import surge from China could put upward pressure on capacity — at least in the short term.' Retail spending was up 6.8% year over year in April, but consumer sentiment has declined for four consecutive Logistics said reefer and flatbed trucking segments are facing a challenging outlook as consumers reduce spending, while housing starts have also experienced a significant decline. 'Many Americans are beginning to cut back on discretionary purchases such as travel and dining out,' the report said. Housing starts declined 11.4% year over year in March compared to the same month in 2024, while in April housing starts increased 1.6% year over year, according to the U.S. Census Bureau. 'This reduction marks the sharpest decrease in a year, suggesting a challenging start to the spring homebuilding season,' ITS Logistics said. The post Trucking company exits reach 12-month high appeared first on FreightWaves. Sign in to access your portfolio
Yahoo
22-05-2025
- Business
- Yahoo
ITS Logistics May Supply Chain Report: Carrier Exits Reach 12-Month High While New Authorities Jump 48% Month-Over-Month, Highlighting Excessive Market Turnover
-- Whipsaw tariff dynamics result in surging ocean container rates while soft seasonal markets reflect ongoing economic uncertainty. -- ITS Logistics May Supply Chain Report RENO, Nev., May 22, 2025 (GLOBE NEWSWIRE) -- ITS Logistics released the May ITS Supply Chain Report, revealing that the ongoing down freight market combined with tariff volatility continues driving high market turnover. Carrier exits reached a 12-month high, while new carrier authorities jumped by 48% month-over-month and 30% year-over-year. 'Spring is typically when the spot market sees more carriers join, and last month was no exception – despite larger freight market trends,' said Josh Allen, Chief Commercial Officer at ITS Logistics. 'Rates saw marginal movement for both reefer and dry vans, reflecting soft demand in key seasonal industries like food service and home construction. However, a forthcoming import surge from China could put upward pressure on capacity — at least in the short term.' Due to the U.S. agreeing to lower the base level of tariffs on most Chinese goods to 30% from 145%, while China confirmed it would cut its levies on U.S. products to 10% from 125%, importers are urgently shipping cargo across the Pacific during the three-month trade war lull. As a result, ocean carriers are expected to raise that rate by as much as 50% by next week, leading to major carriers quoting rates for sailings through the end of May at about $900 per TEU higher than last week. Despite surging container rates, an anticipated rebound of Chinese import volume is expected to hit U.S. ports in the next 4-6 weeks, quickly tightening drayage capacity and eventually making its way downstream into OTR. Tariff uncertainty is also driving a surge in demand for bonded warehousing, leading to significant disruption in inland truck routes and changes in current freight flows. 'Even though the total number of trucks active in the U.S. increased slightly in March, fleets with 300-1,000 trucks and those with over 5,000 saw month-over-month declines of 1% and 3.3%, respectively,' continued Allen. 'Carrier exits came in at 7,474, the highest in 12 months and 26% higher than the prior month. Extreme turnover like we're seeing in today's capacity market creates an environment ripe for fraud, which is already a huge issue for shippers today who don't have an established network of trusted logistics providers.' In April 2025, the U.S. economy faced significant turbulence due to new trade policies, market volatility, and shifting inflation dynamics, all influenced by the current geopolitical factors affecting the overall supply chain; however, domestic demand continues to show resilience for now. U.S. consumer behavior reflected a complex interplay of economic pressures, policy shifts, and evolving preferences, leaving the Federal Reserve with the challenge of balancing the need to control inflation against the risks of slowing economic growth. The key risk factors shaping the U.S. economic outlook include: Trade Policy & Global Relations: President Trump's 'Liberation Day' tariffs increased the average U.S. tariff rate to 24%, sparking market sell-offs and concerns about long-term economic impacts. Inflation: Economists caution that recent tariff implementation may exert upward pressure on prices in the coming months. Federal Reserve's Dilemma: The Federal Reserve faces a challenging environment, balancing the need to control inflation with the risks of slowing economic growth. Global Economic Uncertainty: The temporary 90-day tariff reduction agreement with China provided short-term market relief, boosting stocks of companies like Nike, Tesla, and Amazon. However, the long-term effectiveness remains uncertain. 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 monthly ITS Supply Chain Report serves to inform ITS employees, partners, and customers of marketplace changes and updates. The information in the report combines data provided through DAT and various industry sources with insights from the ITS team. Visit here for a comprehensive copy of the report with expected industry insights and market updates. 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
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.
CNBC
16-05-2025
- Business
- CNBC
The 'pause' in the China trade war is still feeding uncertainty, delays and high prices
When the Trump administration slapped 145% tariffs on China, the shipping and logistics industries slowed to a trickle. Now they're dealing with the opposite problem: a surge. The administration's decision to "pause" the steep tariffs for 90 days has left companies rushing to get orders in before the window closes. Insiders say the threat now is clogged ports, delays and sky-high shipping and trucking rates. "The only risk that you could see is as you get into June and July there being a flood of goods, a ton of containers coming in, and there not being enough capacity to execute it," said Paul Brashier, vice president of global supply chain at ITS Logistics. "And then what happens?" Since Covid, ports have gotten better at managing traffic, but the supply chain industry is still anticipating bottlenecks and capacity crunches, especially in trucking. The whole up and down is giving the industry a case of whiplash. Trucking was just emerging from a three-year freight recession brought on by the pandemic. Then President Donald Trump announced the tariffs. If the two sides are unable to reach some kind of deal in the next 90 days, or if the resulting tariffs are still too high for companies to stomach, the industry could face layoffs. "I mean, 80% of truck drivers voted for Donald Trump in our surveys," said Craig Fuller, CEO of FreightWaves, an industry news and data provider. "And they're the ones that are probably most vulnerable in this trade war." Watch the video to learn more.
