The Next Big Logistics Risk: ILA Negotiations

June 21, 2024

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The supply chain world is no stranger to risks and disruptions. The past twelve months have seen everything from drought-related restrictions at the Panama Canal to diversions due to piracy in the Red Sea, from the Francis Scott Key Bridge collapse in Baltimore to unpredictable shipper demand and carrier capacity.

As we reach the halfway point of the year, the next big risk could be a labor strike at U.S. seaports, as negotiations are underway — yet stalled — for a new contract. Here are six headlines to keep up with the labor actions and other supply chain and logistics news.

A Possible Strike Looms

About 85,000 port workers along the East and Gulf Coasts are members of the International Longshoreman Association, or ILA, a labor union.

The ILA recently suspended contract negotiations with the U.S. Maritime Alliance (USMX), which represents employers at East and Gulf Coast ports, the Loadstar reported. Central to the dispute was automation and how the technology is used at some seaports. For example, auto gates process trucks autonomously, without the need for labor. That violates the ILA contract, which is in effect until the end of September.

When the ILA found out that APM Terminals in Mobile, Alabama, was using an auto gate system, the union suspected other ports and terminals might be using that same technology, and the ILA suspended negotiations.

“This is a clear violation of our agreement and we will not tolerate it any longer,” a spokesperson for ILA said, per the Loadstar.

Calling for Higher Wages

In addition to the automation issues, the ILA is also calling for higher wages for dockworkers, according to FreightWaves. The union’s rationale: Ocean carriers are bringing in “billions of dollars,” as reported in their public financial results.

“USMX member company’s profits are enormous,” the union wrote in a social media post, according to the FreightWaves article. “The ILA will demand wage increase commensurate with these revenues.”

Under the current contract, union members make between $20 and $37 per hour, depending on their jobs, skills, and years of experience. It’s not entirely clear what kind of raise the ILA will seek in negotiating the next contract.

If the negotiations continue to stall and a contract isn’t negotiated by the fall, workers could strike. That could have ripple effects throughout the supply chain, delaying trucks from being able to pick up containers and preventing shippers from moving their goods in a timely fashion. But it would also draw attention to the labor issues at hand, and emphasize the importance of the port workers’ jobs.

The Slow Exit of Trucking Workers

As questions linger about the state of labor at the nation’s seaports, one thing is certain. The trucking industry is slowly shedding workers.

That’s what data from the Bureau of Transportation Statistics shows, according to an article in Transport Topics. Last month, employment in the transportation and warehousing sector fell by 0.2% year-over-year, reaching 6.58 million workers in May 2024.

The numbers are more telling in truck transportation, specifically. Within that sector, Employment dropped 1.9% in the same time frame, marking the eighth month in a row that truck employment declined compared to the previous year. For-hire trucking shed 5,400 jobs last month.

Still, the trucking industry remains in a state of overcapacity, according to research analysts quoted in the article. One analyst said the dropping employment is a move in the right direction, but the gradual rate of change isn’t enough to rebalance the freight market, which has favored shippers for several months.

Werner Expresses Cautious Optimism

Werner Enterprises CEO and Chairman Derek Leathers agreed that the trucking market is “not yet really at an inflection point,” according to Trucking Dive.

At the height of the pandemic, several smaller carriers entered the market to keep up with soaring demand from shippers. But for the last two years, those carriers have started to exit the market – either through bankruptcy or being absorbed by a larger company. Small carriers continue to leave, leading to shrinking capacity which will likely push up truck freight rates.

But we’re not there just yet, Leathers hinted. As trucking carriers continue to exit, “we’re closer to the end than the beginning,” the chief executive said. But he said more attrition is necessary to truly rebalance the market.

Logistics Inflation Carries On

Even as we’ve been operating in a shipper’s market, logistics inflation continues to remain high. But costs are falling after rising for a couple of years.

Before the pandemic, logistics spend was around $1.5 trillion, FreightWaves reported. Against that baseline, costs rose 22.4% in 2021 and almost 20% in 2022. But in 2023, logistics costs dropped 11%, falling to $2.4 trillion.

The numbers are from a “State of Logistics” report from the Council of Supply Chain Management Professionals. One conclusion is that logistics executives view volatility as the normal condition for supply chains, making it essential to have a flexible warehousing and transportation network.

Pushing Back on EVs

Meanwhile on Capitol Hill, some senators are pushing back against the Biden administration’s electric vehicle goals, per Transport Topics.

A group of lawmakers introduced a bill that would require the Energy Department to use specific criteria to calculate the efficiency of electric vehicles. The goal is to make sure there isn’t a “misinformed mandate” to adopt EVs, the publication said.

Other lawmakers have expressed concerns and frustrations that more progress hasn’t been made to build out electric vehicle charging infrastructure, which is essential to widespread adoption of the cars and trucks.

Additionally, some senators and congressmen are concerned that the plans to speed up EV adoption could harm American jobs, especially in industries like traditional automotive manufacturing, where many workers are trained and skilled in producing internal combustion engines.

Tackling Logistics Risks With Entourage Freight Solutions

Risks are simply a part of doing business in the supply chain world. Having a trusted partner to navigate the volatile trucking market and the various logistics disruptions can help keep operations running smoothly.

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.

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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.