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Reuters
20 hours ago
- Business
- Reuters
US container imports may have peaked in July, chief of busiest seaport says
LOS ANGELES, Aug 13 (Reuters) - Ocean imports to the United States may have peaked in July after retailers raced to bring in goods from China and elsewhere to avoid potentially hefty tariffs on holiday-related products, the top executive from the busiest U.S. seaport said on Wednesday. Containerized imports to the Port of Los Angeles, the front door to many U.S. imports, jumped 8% to 544,000 20-foot equivalent units (TEUs) in July. "Much of this volume was fueled by importers hustling to bring in cargo ahead of potential tariff hikes later this month and beyond," Gene Seroka, the port's executive director, said on Wednesday. "Everything is already here for the holiday season," said Zachary Rogers, lead author of the Logistics Managers' Index, which serves as an early indicator for economic activity in the United States. President Donald Trump's tariff policies, particularly short-lived 145% levies on goods from China, have wrecked havoc on U.S. imports as buyers either gorged on or starved themselves of goods to avoid higher import duties. The United States and China earlier this week extended their tariff truce by another 90 days, easing the uncertainty clouding the retail peak season for stocking stores with holiday goods. As a result, major shippers like Walmart (WMT.N), opens new tab, Target (TGT.N), opens new tab and Home Depot (HD.N), opens new tab appear to be breaking the traditional holiday-related import pattern that tended to peak from August to October.
Yahoo
05-08-2025
- Business
- Yahoo
Freight market's ‘holding pattern' continues in July
The logistics industry continued to expand in July, but the transportation market remains stuck in a 'holding pattern,' according to a monthly survey of supply chain professionals. The Logistics Managers' Index – a diffusion index in which a reading above 50 indicates expansion while one below 50 signals contraction – returned a 52.6 reading for transportation capacity in the month. While up only 20 basis points from June, the subindex continued to show that any recovery in the freight cycle is unlikely to come from the supply side. Sentiment around transportation capacity has signaled growth for more than three years now. (The dataset returned neutral readings of 50 twice last year.) 'So long as this metric comes in above 50.0, it is unlikely that we will have a truly robust expansion in the freight market,' a Tuesday report said. Even with the modest capacity expansion, both transportation utilization (59.5) and transportation prices (63) were up in the month, 6.6 percentage points and 1 point, respectively. Most truckload carriers have advanced initiatives to better utilize equipment through the protracted downturn, including the removal of tractors from service. July marked the highest utilization reading since January (60.1), with firms upstream in the supply chain, like wholesalers, reporting expansion (60.7) versus no change (50) among downstream retailers. Transportation pricing has remained firmly in growth mode this year, averaging a monthly reading of 63.2. The pricing index again grew faster than the capacity index, suggesting the freight market is recovering, albeit slowly. (The pricing dataset has outpaced the capacity dataset by an average of 10 points in each month this year.) Respondents returned a 12-month-forward prediction of 75.5 for the pricing subindex. The overall LMI came in at 59.2 for the month, down 1.5 points from June. The all-time average for the dataset is 61.5. Smaller firms – companies with less than 1,000 employees – and upstream companies drove activity in the supply chain during July, with both reporting higher inventories. Overall, inventory levels (55.6) fell 4.2 points in the month. Smaller companies reported rapid expansion in inventory (64.8). Most of the smaller respondents are distributors, wholesalers and logistics service providers that reside in 'the middle mile of the supply chain,' between ports, manufacturers and retailers. Upstream firms saw expansion (58.5) versus contraction among downstream companies (47.6). A decline in stock levels among retailers was said to be 'due to the start-stop nature of tariffs.' The growth in inventories kept inventory costs (71.9) elevated, albeit 9 points lower than in June. Warehouse capacity (51.1) was up 3.3 points, crossing back into expansion territory. Capacity was 10 points tighter for smaller companies given their inventory additions. Warehouse utilization (59.4) fell 2.8 points while warehouse prices (68.3) were unchanged, maintaining a 'robust rate of expansion' in the month. Logistics real estate investment trust Prologis (NYSE: PLD) said on Monday that it is just a matter of time before market rents increase, noting well-capitalized, large-scale tenants are moving forward with leasing plans despite an uncertain macroeconomic backdrop. The LMI is a collaboration among Arizona State University, Colorado State University, Florida Atlantic University, Rutgers University and the University of Nevada, Reno, conducted in conjunction with the Council of Supply Chain Management Professionals. More FreightWaves articles by Todd Maiden: Beleaguered TL carrier Pamt Corp. names new CEO XPO sees 'massive runway' to push margins higher Schneider National not yet choosing sides on potential changes to railroad landscape The post Freight market's 'holding pattern' continues in July appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-07-2025
- Business
- Yahoo
Truckload's diminishing distance
Chart of the Week: Outbound Average Length of Haul – USA SONAR: The average length of haul for truckload tenders in the U.S. fell to 533 miles last week—down approximately 70 miles, or 11%, from the same time last year, according to SONAR's tender data. While the Outbound Average Length of Haul Index (OALOHA) has dipped lower in the past, it has only reached this level during brief periods. Weak overall demand has kept the truckload market from meaningfully rebounding, but the loss of longer-haul freight is compounding that stagnation. Is there any reason to believe this trend will reverse in 2025? The primary driver behind the declining average is the shift of long-haul freight to intermodal, though demand for regional truckload moves has also softened. Freight moving less than 100 miles, however, has remained relatively resilient. Just in case Companies began increasing average lead times on orders in early 2024 as Red Sea attacks disrupted international shipping. While this didn't reach COVID-era levels of service breakdown, the disruptions were enough to cause some inconsistency. As a result, many goods arrived in the U.S. with extra buffer time for domestic movement. Inventory levels have been climbing unevenly over the past year, according to the Logistics Managers' Index (LMI). This follows a strong period of destocking in 2023, driven by collapsing goods demand and over-ordering — a pattern that remains fresh in the minds of importers and may continue to suppress aggressive restocking in the near term. Tariffs and the renewed trade war have amplified the pull-forward effect this year, reinforcing the shift to earlier, bulkier ordering cycles. Intermodal has benefited significantly from longer lead times and accelerated shipping schedules. Last week, international loaded container volumes moving by rail were up 7% year-over-year, while domestic intermodal volumes remained flat. Intermodal is inherently more cost-effective, especially for long-haul moves across the country. With more freight landing at large ports—those best equipped with major rail terminals—the shift to rail has intensified. Notably, intermodal is replacing not just any truckload freight, but some of the most impactful long-haul runs. For example, a Los Angeles to Chicago route takes a truck about four days—capacity that intermodal is increasingly absorbing. Deals getting done A breakthrough trade deal with Japan last week, which includes a 15% tariff rate, suggests the beginnings of trade de-escalation. A significant trade partner — the agreement is a positive signal that some fog is lifting from the uncertain trade environment that defined the first half of the year. At the same time, inventory carrying costs have surged. The LMI's inventory cost component rose above 80 in June — its highest level since early 2022 — making it harder for companies to justify holding excess goods. A calmer trade climate, easing geopolitical risks, and rising holding costs could push shippers back toward just-in-time inventory strategies later this year. While economists and the Fed are forecasting a sluggish finish to 2025, that may not matter much for truckload. With capacity still showing signs of tightening and long-haul demand near a floor, even modest demand shifts could cause a meaningful market reversal. If shippers pivot back to leaner inventories and faster domestic cycles, long-haul trucking could quickly return to relevance. About the Chart of the Week The FreightWaves Chart of the Week is a chart selection from SONAR that provides an interesting data point to describe the state of the freight markets. A chart is chosen from thousands of potential charts on SONAR to help participants visualize the freight market in real time. Each week a Market Expert will post a chart, along with commentary, live on the front page. After that, the Chart of the Week will be archived on for future reference. SONAR aggregates data from hundreds of sources, presenting the data in charts and maps and providing commentary on what freight market experts want to know about the industry in real time. The FreightWaves data science and product teams are releasing new datasets each week and enhancing the client experience. To request a SONAR demo, click here. The post Truckload's diminishing distance appeared first on FreightWaves. Sign in to access your portfolio
Politico
10-07-2025
- Business
- Politico
Trump steps up attacks on Powell with tariff inflation muted
Businesses accelerated their imports prior to Trump's tariffs taking effect, which may have helped keep prices steady as they worked through existing inventories. The June Logistics Managers Index — which tracks freight activity and pricing — found that inventories expanded last month 'as importers scrambled to take advantage of the pause in the most punitive tariffs.' Trump's latest round of tariff threats may have little effect on overall costs, however. Samuel Tombs of Pantheon Economics said the sky-high 'reciprocal' levies that could hit Japanese and South Korean imports on Aug. 1 won't have a material impact on the overall tariff rate or inflation, given that the exports from both countries are largely covered by exemptions and sector-specific levies. What's more, there's some indication that certain exporters from overseas might be absorbing some of the costs by reducing prices for American importers. Economists at Goldman Sachs estimate that exporters have eaten a fifth of the costs so far — with Chinese exporters accounting for the lion's share — based on how product-level import prices have moved following the implementation of new import taxes. (Miran noted in his report that prices on imported goods began fading in 2023.) Still, the remaining costs are considerable. The U.S. has taken in almost $100 billion in tariff revenue this year — Bessent recently said the total could climb to as high as $300 billion by year-end — but evidence suggests those costs have largely been borne by companies. In the same report, the Goldman team estimated that tariffs have been responsible for less than a one-tenth of a percentage point increase in consumer prices this year — though the effects could still intensify. While businesses from Best Buy to Costco have raised prices due to import duties, many others are holding fire. 'Most businesses have not fully passed along the cost of the tariffs,' Neil Bradley, the chief policy officer and head of strategic advocacy at the U.S. Chamber of Commerce, said during a panel on Wednesday. 'Part of that's a hope that the tariffs go down. Part of it is a concern about market share that they might have. Part of it might be uncertainty about the macroeconomy.' As long as that remains the case, high-level economic data will continue to provide Trump with arguments to go after Powell over borrowing costs — or make lowering interest rates a litmus test for anyone who might want to take his place.
