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CNBC
4 days ago
- Business
- CNBC
From California to Gulf Coast, Trump's trade war take biggest toll on nation's smaller, secondary ports
Across the U.S., from California to the Gulf Coast, secondary and smaller ports are processing less trade as shippers readjust supply chain deliveries in a race against August tariff deadlines. Recent data on container volumes shows that while the nation's busiest port, Los Angeles, has seen a sizable bump in traffic, that has come at the expense of trade activity for smaller ports, where there has been a reduction in scheduled services for imports, according to ITS Logistics' monthly US Port/Rail Ramp Freight Index. "The ports of Oakland, Jacksonville, New Orleans, and Panama City [Florida] are getting sandwiched out of port calls as more shippers decide to unload their freight in the larger ports in an effort to get the product in before the tariffs," said Paul Brashier, vice president of global supply chain at ITS Logistics. The Port of Oakland recently reported a 10.1% decrease month-over-month in June — year-over-year container traffic was down 13%. Port of Oakland maritime director Bryan Brandes said the softening demand is a result of the ongoing tariff uncertainty. "This is not a seasonal dip, but a market recalibration," said Brandes. "Importers and exporters are adjusting their supply chain timing and routing decisions in response to evolving conditions," he added. Oakland is unique among U.S. ports, maintaining a near 50/50 balance of imports and exports, with a big role in the nation's agricultural trade. The Port of Oakland is the No. 1 refrigerated export gateway in the U.S., and nearly all containerized cargo moving through Northern California goes through the Port of Oakland. Container volumes are key economic and job drivers for a port's local community and economic stability, and port officials have voiced concerns in recent months about the trade war risks. The Port of Oakland, along with its partners, supports more than 98,000 regional jobs and $174 billion in annual economic activity. Jobs and trade have also been a focal point for the larger ports, even amid a short-term increase in container volumes during the pause on the steepest Chinese tariff levels, which saw the Port of Los Angeles handle record monthly traffic in June. Back in its May container update, Port of LA executive director Gene Seroka said the drop in containers being moved impacted jobs. "We saw that for every two longshore members that walked into the hiring hall, one went home without work," he said. During the more recent front-loading of Chinese goods ahead of the mid-August deadline for a trade deal before much higher tariffs kick in, port officials have stressed that they would not describe it as a "surge." Seroka recently told CNBC that "shifting timelines simply mean shifting volume and more uncertainty here at the Port of LA. Looking into August, if everything holds the way we see it right now, I expect volume to ease because of those new tariffs being in place, making it more costly for American importers." "It's easy to say right now, peak season is earlier than normal. Just a question of how long this will last," Brashier said. He added that the recent trend among ocean carriers to concentrate on the largest ports like Los Angeles while skipping secondary ports like the Port of Oakland should continue. "There is too much uncertainty in the marketplace right now for companies to truly book ahead," he said. "Companies are reassigning their logistics to be as efficient as possible in moving their decreased number of containers. It is all about margins, so when you are negotiating with logistics companies, shippers may have more negotiating power with more containers arriving at one port instead of two or three." Comparing June and July container arrivals, the majority of the secondary ports across the U.S. are down substantially, according to trade tracker Vizion, though Oakland has seen a slight turnaround. Josh Stein, governor of North Carolina, recently told CNBC that there has been a recent reduction in traffic at the state's biggest port in Wilmington, a result of trade policy that "changes practically on a daily basis." "We need to have stability, businesses need certainty, so they can figure out how and where to invest," Stein said. More than 20% of North Carolina's GDP in 2024 came from international trade in goods, according to data from Trade Partnership Worldwide. The outlook for Chinese exports to the U.S., according to recent SONAR data on ocean freight bookings, suggests a decline in orders headed to the U.S. in the coming weeks. Even as the stock market and economy prove resilient in the face of tariff uncertainty, U.S. companies continue to downsize orders or eliminate products that are not as popular. "Carriers are aligning service schedules, resulting in fewer sailings, fuller ships, and volume patterns that mirror the broader hesitancy in global trade," said Brashier. There are economic reasons for shippers to maintain service across a wide portfolio of ports. Brashier said the decision to cut down on ports called on can negatively lead to higher costs. Export containers can be in different locations, which can impact availability, and truck transportation costs can be anywhere between two and four times what is typical. "Normally, a company's distribution center is near the port where they traditionally bring their freight in," Brashier said. "If their containers are now being offloaded at another port, that means that container pickup, which was originally a local pickup, could morph into a 400 to 500-mile trucking job. The more miles a trucker travels to pick up a container and return, the more expensive that freight move will be."
Yahoo
12-06-2025
- Business
- Yahoo
ITS Logistics June Port Rail Ramp Index: Trans-Shipment Delays in Asia Signal Impending US Import Surge, Spurring Early Retail Peak
-- Backlogged empty containers and surging inbound freight are set to converge, stressing inland supply chain operations. -- ITS Logistics June Port Rail Ramp Index RENO, Nev., June 12, 2025 (GLOBE NEWSWIRE) -- ITS Logistics today released the June forecast for the ITS Logistics US Port/Rail Ramp Freight Index. This month, the index reveals increased volumes making their way to North America with reports of trans-shipment delays in Asia, most notably in Singapore. The change signals rising East-to-West freight volumes, while outside of the terminals, empty termination problems persist, especially in Los Angeles/Long Beach. Furthermore, rail gateways for inland point intermodal (IPI) legs of ocean freight will become more congested rapidly as import surges make their way inland. 'Most ports are running at 60 to 75% capacity, suggesting port operations and vessel congestion should operate efficiently,' said Paul Brashier, Vice President of Global Supply Chain for ITS Logistics. 'However, with temporary tariff relief boosting Chinese import volumes in the second half of the retail season, there are growing concerns about whether receiving capacity can effectively absorb these volumes.' Mid-summer typically marks the onset of back-to-school shipping activity, with fall and winter holiday merchandise still in production or on water. However, the April suspension of the Trump administration's tariffs on Chinese imports prompted many retailers to accelerate orders on inventory for the second half of the year—prompting another frontloading episode that has sent container rates surging even into early June. Last Friday, the Shanghai Containerized Freight Index (SCFI) reported a week-over-week increase of nearly 31% across all documented markets. West Coast-bound spot rates rose 58% to $6,243 per 40-foot equivalent unit (FEU), while East Coast rates increased 46% to $5,172 per container. While the rebound in activity is a welcome relief after a 13.4% drop in import volume between April and May, the Global Port Tracker's June forecast of 2.01 million TEUs still represents a 6.2% year-over-year drop in volume—signaling shippers' ongoing hesitancy in the face of shifting global politics and economic uncertainty. On June 11 President Trump announced a forthcoming trade agreement with China, referencing updated tariff rates of 55% on Chinese imports and 10% on United States exports. Until a final agreement is announced, there is still uncertainty in how this will affect the global supply chain for the remainder of 2025. Outside of the terminal gates, ongoing challenges with empty container termination are placing pressure on domestic supply chain operations—particularly in Southern California. Dwell times remain elevated due to restricted return windows, limited depot availability, and more stringent return policies from ocean carriers. Many carriers have reinstated labor-intensive termination procedures not seen since the post-COVID era, while simultaneously increasing the threshold for detention-free time exemptions. These changes introduce greater administrative complexity for drayage providers and expose shippers to additional per diem or detention charges if they do not carefully review ocean contracts. The surplus of empty containers—already straining depot space and chassis capacity—is now set to converge with a surge of frontloaded import volume from China, significantly amplifying congestion risks at ports and rail ramps. As grounded empties linger and imports move inland, shippers are likely to encounter reduced equipment availability, increased dwell times, and slower turnarounds. IPI-connected gateways should be of particular note to shippers, as summer holidays like the Fourth of July are marked by increased levels of cargo theft. Altogether, these conditions create a volatile inland environment for this unconventional peak season. 'With container termination challenges compounding port and depot congestion—and a wave of frontloaded imports moving rapidly inland—any inefficiencies could drive significant cost increases through detention costs, delays, and fraud,' Brashier advised. 'To maintain control over delivery timelines and minimize risk, shippers should consider leveraging transload, cross-dock, and one-way trucking options that offer more flexibility and security for their freight as we navigate the next few weeks.' 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 US 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
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
