Latest news with #ITSSupplyChainReport
Fibre2Fashion
28-07-2025
- Business
- Fibre2Fashion
US drayage market seems to be rebalancing for rest of 2025: Report
The US drayage market appears to be undergoing a rebalancing event for the rest of this year, and that is bound to present new opportunities and challenges for shippers moving into the latter half of 2025, according to the July ITS Supply Chain Report released by North American third party logistics (3PL) provider ITS Logistics. Drayage refers to the transportation of goods over short distances, typically by truck, often as part of a longer shipping process. The US drayage market seems to be rebalancing for the rest of 2025, and that can create a positive shift in the shipping industry, ITS Logistics said. The US drayage market saw a 1.8-per cent MoM rise in June imports, a notable contrast to typical mid-summer trends. A mixed performance highlights ongoing shifts in port routing and regional demand as tariff volatility continues to shape the market. The US drayage market saw a 1.8-per cent month-on-month (MoM) rise in June imports, a notable contrast to typical mid-summer trends. The top gateways for Chinese imports, particularly the Port of Los Angeles, also saw major volume increases, while East Coast and secondary ports experienced significant declines in activity. The mixed performance highlights ongoing shifts in port routing and regional demand as tariff volatility continues to shape the national drayage market, a release from the company said. 'Ultimately, the full economic effects of recent tariffs are beginning to manifest, with potential disruptions in trade flows and increased costs for businesses and consumers,' said Josh Allen, chief commercial officer at ITS Logistics, said in a company release. 'This comes just as the industry prepares to combat hurricane season and the trucking market continues to see marginal shifts in both spot and contract rates during peak season,' he added. Although much of the industry is experiencing supply chain disruptions of significant magnitude, whether due to administrative decisions from the White House with tariffs or the intensifying hurricane season, the warehousing market shows a glimpse of hope for change. The producer price index for warehousing and storage declined 1.4 per cent from May's 155.4 to 153.1 in June 2025, marking a continued downtrend from March and signaling reduced pricing leverage for warehousing providers. Fibre2Fashion News Desk (DS)
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
