Supply Chain Professionals Cast Wary Eye as Strike Threats Loom

Nick Terry • June 27, 2024

Blog Post CTA

In a prior edition, we dug into negotiations and a possible strike by the International Longshoreman Association, or ILA, a labor union. But it’s not the only labor action that could have far-reaching impacts on supply chains and freight movement.

Here are six headlines to keep up with ongoing union actions and other supply chain and logistics news.

A Deal at the Border

Canadian border agents are voting as we speak on a new four-year labor agreement with the country’s government, Supply Chain Dive reported

In early June, the union and Canada’s treasury board reached a tentative agreement that averted a strike. Had the strike occurred, it could have led to backed-up traffic at dozens of crossings along the U.S.-Canada border. It likely would have also stalled or created longer processing times for freight shipped between the two countries. There’s a lot of that – freight between the U.S. and Canada totals about $65 billion every month, with computers, vehicles, and electrical machinery making up a significant portion of the shipments.

Now, the union is working on a longer-term agreement, per the Supply Chain Dive article. Border agents have from June 20 to July 4 to vote on the agreement, and a result is expected shortly after voting ends at noon Eastern on July 4. The agreement, if ratified, will cover June 2022 through June 2026. It includes compounded wage hikes of more than 15%, along with concessions related to shifts and paid time off.

Stalled Negotiations and a Strike Vote

Also in Canada, the Teamsters Canada Rail Conference is organizing a vote on a strike. The labor union represents more than 9,000 Canadian rail employees who work for Canadian National and CPKC – the combined railways of Canadian Pacific and Kansas City Southern.

The strike vote is happening as contract negotiations with the railroads have stalled, according to FreightWaves. The vote will continue until June 29. If members vote in favor, and the strike does not pose a threat to public safety, a strike could take place as soon as mid-July.

Regarding negotiations, rail workers such as conductors, engineers, and traffic controllers are looking for higher wages and provisions related to crew scheduling and fatigue management. Canadian National has been negotiating with the union since November. The union said it has “no indication” how long the negotiation process might take or what the outcome could be.

An Abrupt Shutdown

U.S. Logistics Solutions, a Texas-based company, abruptly shut down its operations. Thousands of truck drivers, warehouse employees, and dock workers were laid off. They received notice that the company would halt operations, and that they would not receive their paychecks, according to Chron, a website covering news in Houston, Texas.

The company was owned by a private equity firm, which ceased operations and left USLS without a bankroll.

USLS was called Forward Air Solutions before it was acquired by the private equity firm in 2021. The company distributed time-sensitive products.

Truck Tonnage Starts Its Turnaround

Despite some turmoil on the labor side of the logistics industry, truck tonnage is finally on the upswing.

The American Trucking Associations’ for-hire truck tonnage index gained 1.5% year-over-year in May, Transport Topics reported. That was the first increase in 15 months for the index, which surveys ATA members and draws feedback from contract freight rather than the spot market.

For many months, trucking industry executives and analysts have been postulating that the market is due for a turnaround after many months of historically low rates. An overcapacity of carriers, many of which entered the market during the pandemic, and a decrease in demand from shippers after pandemic highs, have contributed to the low trucking rates. Experts have been cautiously optimistic that trucking will recover, and the ATA is continuing that sentiment.

“It is still too early to say whether this is the start of a long-awaited recovery in the truck freight market,” said the organization’s chief economist.

Not all indices measuring the trucking market have shown positive results, however. The Cass Freight Index, for one, reported shipments down by 5.8% year over year.

“Some data sets are looking pretty good, other data sets are not,” said Tim Denoyer, senior analyst at ACT Research, which also assesses the state of the freight market. “The freight cycle is recovering, [but] it’s not lifting all boats yet.”

Diesel Prices Climb

Also turning around: diesel prices. According to Transport Topics, the price of diesel had declined for nine weeks in a row. But that ended in mid-June, when prices rose 7.7 cents, resulting in a national average diesel price of $3.735.

The price hike is the biggest one since mid-February, when diesel rose 21 cents to $4.109. Still, a gallon of diesel is about eight cents less than it was at this time last year.

OOIDA vs. EPA

Even as diesel prices tick up, the Owner-Operator Independent Drivers Association (OOIDA) is suing the Environment Protection Agency (EPA) over the agency’s final rule on electric vehicles, FreightWaves reported.

The rule aims to reel in greenhouse gas emissions with a handful of provisions related to heavy-duty vehicles. The EPA’s rule affects truck model years 2027 and 2032 and applies to several sizes, from delivery trucks to long-haul sleeper cabs. For example, long-haul tractors would need 25% of their fleet to be zero-emission by 2032.

OOIDA, which represents independent truckers and small businesses, contends that the vehicle standards would put its members out of business due to the costs associated with new equipment and upgrading their fleets. A new Class 8 diesel truck costs about $180,000, whereas the same-size electric truck costs $400,000. The association called the EPA’s rule “arbitrary, capricious, an abuse of discretion, and not in accordance with law.”

Navigate Strikes and Shutdowns With the Help of Entourage Freight Solutions

Work stoppages or trucking company shutdowns can be sudden and hard to predict. A strike among transportation workers or border agents can have ripple effects up and down the supply chain. Having a trusted partner and contingencies in place can help keep your freight flowing as smoothly as possible.

That’s where Entourage Freight Solutions comes in. EFS provides steady services that can help you navigate an ever-changing logistics environment and receive important information in real time.

Entourage Freight Solutions offers the following services, and many more:

Our LTL service provides on-demand access to capacity, along with real-time data and peace of mind in this high-stakes world.
Our Freight Management lets your team stay organized across inbound and outbound logistics, tracking market capacity and using automation notifications to keep everyone informed.
Our Refrigerated transport provides expertise in everything from finished goods to raw materials, ensuring products arrive on time and in top condition.

Request a quote today to see how Entourage Freight Solutions can help with your freight movement and other supply chain needs.

< Older Post

Newer Post >

Tariffs, Trade Policy, and the Great Freight Fallout

By Nick Terry • April 28, 2025

In 2025, trade policy is no longer something that the freight industry can leave on the back burner. Trade policy today is shaping strategy at every level. From tariff escalations and retaliatory duties to sweeping regulatory changes and targeted maritime fees, supply chain leaders are navigating a freight market in which unpredictability is the only constant. Sourcing decisions are shifting, pricing dynamics are unstable, and long-standing operational models are being rewritten in real time. This edition brings together key stories highlighting the growing pressure across logistics channels. Each development points to an industry moving fast, and often reactively, to keep pace with volatile policy decisions. Tariffs Stall US Freight Recovery as Shippers Pause Orders The recent move by the U.S. Trade Representative (USTR) to impose entrance fees on Chinese-built ships calling U.S. ports has only added to the confusion and uncertainty gripping global supply chains and freight operations. Shippers are pausing plans and slashing orders, with truckload volumes, containerized imports, and manufacturing output all showing signs of contraction. Ocean freight spot rates have collapsed: Asia-U.S. West Coast rates have fallen 61% since January to $2,050 per FEU, while East Coast rates have dropped 53.7% to $3,100 per FEU . Blank sailings are rising, with vessels leaving Asia half-empty. Amazon and Five Below are among the major retailers reducing orders from Asia. Container imports jumped 15.3% in 2024, but forecasts now predict a 20-27% decline through the summer. Exporters, particularly agriculture and forestry suppliers, are also squeezed, facing 125% retaliatory tariffs from China. Truckload and intermodal rates remain stagnant, while U.S. factory output fell sharply in March. US Apparel Importers Brace for Long-Term Volume Declines According to Trade Partnership Worldwide, a 124.1% tariff on Chinese clothing and footwear is expected to reduce U.S. apparel imports by 1.6% annually . China still accounts for 41.7% of apparel shipments, leaving limited flexibility for diversion. The American Apparel and Footwear Association (AAFA) is warning of price hikes and mounting infrastructure stress as sourcing pivots toward Vietnam, India, and Indonesia. A looming May 2 deadline for de minimis exemptions could further complicate flows and delay deliveries. Even with a temporary 90-day pause in reciprocal tariffs, the policy uncertainty already affects long-term planning. AAFA CEO Steve Lamar calls the shifting policies “chaotic,” and warned that high tariff pressure will hit both importers and U.S. manufacturers reliant on Chinese components. Port and rail capacity limitations at larger gateways are adding to concerns. Retailers now face rising costs, shrinking margins, and operational delays — all while consumer demand continues to shift rapidly. Freight Pricing Gains Lose Momentum According to the TD Cowen/AFS Freight Index, Q1 truckload rates rose 5.9% above the 2018 baseline, but are expected to decline slightly in Q2. Shippers are responding to tariff threats with aggressive front-loading and shorter-haul routes, driving per-shipment costs to three-year lows. LTL carriers remain focused on profitable lanes and high-quality freight rather than chasing volume. The index forecasts a 0.7% year-over-year increase in LTL rate per pound for Q2 , despite sustained demand softness and macro uncertainty. A key driver behind the softening spot market conditions is a shift to shorter hauls and regionalized distribution, pushing per-shipment costs to their lowest point in more than three years. This trend reflects how retailers and manufacturers are repositioning inventory in response to tariff volatility, as NRF’s Jonathan Gold and DAT analyst Dean Croke noted. Meanwhile, the LTL sector is seeing a 4% rise in fuel surcharges, offsetting lower weights and shorter hauls. With the freight market still under pressure after 26 months of contraction, optimism remains subdued as we enter the midyear period. US Truckload Freight Spot Rates Continue to Fluctuate National benchmark rates have experienced a decline across all categories. As of April 18, dry van decreased by 4 cents to $1.62, reefer by 2 cents to $1.88 , and flatbed by 3 cents to $2.16. This marked the first overall decrease since late January, signaling potential shifts in market dynamics. These changes can be attributed to factors such as tariff uncertainties and tighter capacity, especially affecting the flatbed market. Flatbed rates rely heavily on manufacturing activity in the country, which has been particularly hard-hit by the ongoing trade war with China, and to some extent, with the rest of the world. US Finalizes Tiered Fee Plan Targeting Chinese Ships The U.S. is moving forward with a revised plan to levy voyage-based fees on Chinese-owned and Chinese-built ships calling at American ports. The U.S. Trade Representative (USTR) announced the measure as part of a broader Trump administration effort to counter China’s dominance in shipbuilding and logistics while reigniting domestic ship construction and port infrastructure investment. Starting in six months, Chinese operators will be charged $50 per net ton, with an annual increase of $30 for three years . Non-Chinese carriers using Chinese-built vessels will face lower rates, beginning at $18 per ton or $120 per container, with annual increases. The USTR capped fee applications at five voyages per vessel annually, scaling back its original, more punitive per-port-call proposal after intense industry pushback. The fees are tied to findings from a USTR investigation, which concluded that China’s shipbuilding dominance — producing 29% of global fleet capacity and 70% of all container ships on order — stemmed from unfair trade practices. Exemptions apply to ships arriving empty, those in the Great Lakes or U.S. territories, and some bulk exports. LNG vessel transport restrictions will phase in over 22 years to support U.S. production. China’s largest container carrier, Cosco Shipping Lines, has sharply criticized the USTR’s plan. In a strongly worded statement, Cosco labeled the move as “discriminatory,” and warned it would disrupt global industrial and supply chain stability. Cosco denied allegations from that USTR investigation that claimed China manipulated its shipping and shipbuilding sectors to gain an unfair advantage. The carrier said it upholds “integrity, transparency, and compliance” in global competition and remains committed to ensuring the resilience of international trade. Walmart Investing $6B in Mexico, Central America Store Expansion Walmart of Mexico and Central America will invest $6 billion to open new stores across the region , reinforcing its long-term commitment to growth in Latin America. The expansion will include Bodega Aurrera, Walmart Supercenters, Sam’s Club, and Walmart Express formats, building on a robust network of 3,200 stores across all 32 Mexican states. This latest move echoes Walmart’s earlier $1.3 billion investment in 2016 for regional distribution and operational upgrades. The retailer entered the Mexican market in 1991 with a Sam’s Club in Mexico City. In a statement, Walmart said the new expansion reflects confidence in the region’s economic potential and consumer demand. Globally, Walmart continues to invest aggressively in infrastructure and store development. The company has pledged about $4.5 billion for its Canadian operations and $1.3 billion in Chile to build 70 new stores and a distribution center. In the U.S., Walmart is executing a five-year plan to build or convert more than 150 stores while modernizing 650 existing locations under its “Store of the Future” initiative. Experience Seamless Shipping with Entourage Freight Solutions Entourage Freight Solutions believes in total transparency in the shipping process. That is why we invest in tech solutions that track every shipment extensively, monitor every driver, and extract every bit of efficiency without sacrificing quality. Our state-of-the-art platform utilizes cloud-based GPS tracking to keep you informed, reroutes shipments on the fly to avoid delays, and even responds to real-time market changes to ensure you receive your shipment on time and as soon as possible. Our Services Full Truck Load (FTL): When you need a truck all to yourself. Less-Than-Truckload (LTL): Efficient solutions for multi-stop shipments or combining smaller loads to save on costs. Refrigerated Trucking: Keeping your temperature-sensitive products fresh and safe. Cross-Docking: Strategically located facilities in Shelby, Ohio, Cedar Rapids, Iowa, and Romulus, Michigan, for streamlined consolidation, storage, and distribution. Ready to experience a new level of service and control in your freight shipping? Request a quote today to see how Entourage Freight Solutions can help with your freight movement and other supply chain needs.