Trump Aligns with The ILA, But His Tariff Plans Has Truckers on Edge

Trump Aligns With Dockworkers as Tariffs Scare The Trucking Industry

Nick Terry • December 20, 2024

Blog Post CTA

Dockworkers have a formidable ally in their contract standoff with their East and Gulf Coast ports. Donald Trump reiterated his position in their fight against automation with the United States Maritime Alliance (USMX), sparking questions about whether there will be another Biden-esque intervention when the temporary contract expires on Jan. 15, 2025.

As the president-elect prepares to take office, he has made many proposals about tariffs and continues to show willingness to use them as a weapon in the current trade war with various countries. If the tariffs backfire, industries like trucking and manufacturing will be impacted, with businesses across several verticals bracing for impact.

Questions loom over the future of the U.S. Postal Service (USPS) as it continues to struggle. Even Donald Trump is considering privatization of the company. We have this and more news, trends, and updates from around the freight world. Keep reading to find out more.

Trump Voices Support for Dockworkers' Union on Automation Issues

President-elect Donald Trump has reiterated his opposition to automation in shipping operations while strongly supporting the International Longshoremen's Association (ILA) in its contract dispute with employers at East and Gulf Coast container ports. After meeting with ILA leaders Dennis and Harold Dagget at his Mar-a-Lago residence, the soon-to-be president shared a message affirming his recognition of the union's work. This dispute centers on the ILA's opposition to automated cranes, which they argue threaten jobs and port security.

At the same time, the United States Maritime Alliance (USMX) contends such technology is vital if the country and its ports hope to compete on the global stage. As it stands now, none of the ports in the U.S. rank within the top 50 most efficient ports of the world, with most of the blame resting on their refusal to move ahead with automation. With contract talks stalled and the current agreement set to expire on Jan. 15, the prospect of a strike looms. However, this is not unfamiliar territory as previous disruptions, such as a three-day strike in October, halted operations and required federal intervention.

Employers have warned clients to brace for potential service interruptions, while shippers have preemptively managed cargo flows. Despite the president-elect's support of the union workers, his approach to handling a prolonged strike remains unclear. As seen in previous labor disputes, the federal government could invoke the Taft-Hartley Act to intervene. The stakes remain high for workers seeking job security and the industry vying for modernization.

Trucking Industry Braces for Impact of Tariff Policies Under Trump

Donald Trump has proposed tariffs on imports, including a potential 60% rate on goods from China and 25% tariffs across North America. All of which are raising concerns within the trucking industry. Most people and businesses within the industry understand that these measures may be used as leverage in trade negotiations. Still, they are also expected to influence freight demand and consumer costs.

Economists and industry experts warn that tariffs could slow economic activity, potentially offsetting the benefits of extended tax cuts. The trucking sector, which heavily relies on freight from North American manufacturing hubs, is particularly sensitive to changes in trade policy.

Although the full extent and timing of these tariffs remain uncertain, the trucking industry is preparing for potential disruptions in the movement of goods. Analysts predict a modest improvement in trucking conditions in 2025, though substantial growth is unlikely. As the administration moves forward, businesses and policymakers will closely monitor the balance between trade barriers and economic growth.

Trump Considers Privatization of U.S. Postal Service Amid Financial Losses

President-elect Donald Trump has reportedly discussed the potential privatization of the U.S. Postal Service (USPS) with key transition officials, including Commerce Secretary nominee Howard Lutnick. Citing USPS's $9.5 billion loss in the past financial year, Trump has questioned the need for government subsidies for the struggling agency.

The USPS has faced challenges from declining mail volumes and slower-than-expected growth in parcel shipping. During Trump's first term, his appointment of Louis DeJoy as Postmaster General sparked debate due to cost-cutting measures that were criticized for causing service delays. Details of how Trump might pursue privatization or reforms for the USPS remain unclear.

Truckload Spot Rates Reach Two-Year High Amid Tightening Capacity

The National Truckload Index (NTI) has climbed to $2.52 per mile, marking the highest level since January 2023. Despite a year-over-year decline in dry van outbound tender volumes, tender rejection rates have increased, reaching their highest point since July. These trends suggest tightening capacity drives rate increases, even with reduced overall demand.

The number of active trucking authorities has dropped by 4% compared to December 2023, reflecting fewer carriers in the market. This shrinking capacity could pose challenges for shippers, especially if demand surges in 2025 due to economic stimulus or policy changes. Industry experts recommend that shippers secure contract rates to ensure capacity availability, as future volume spikes might lead to higher rates and reduced options.

Supreme Court to Review Biofuel Producers' Challenge to California Emission Rules

The U.S. Supreme Court has agreed to hear a case concerning California's vehicle emission regulations. The hearing aims to address climate change by setting limits on auto pollution. Companies, including Valero Energy Corp. units involved in biofuel production and sales, argue that the Environmental Protection Agency overstepped its authority by allowing California to enforce these standards.

The outcome of this case could have broad implications for state-level environmental policies, particularly as the recent election of Donald Trump raises questions about the future of such regulations.

OnTrac and GLS US Announce Shipping Rate Increases for 2025

Parcel carriers OnTrac and GLS US are set to raise shipping rates in the coming weeks. Starting January 1, 2025, OnTrac’s rates will increase by an average of 5.7%, along with surcharges for residential, oversized, and rural deliveries. GLS US will implement a 5.9% average rate increase on December 23, 2024, near the end of the peak holiday shipping period, and will also adjust its surcharges.

OnTrac, which has expanded aggressively despite recent volume declines and rising costs, offers shippers long-term rate agreements and incentives. GLS US continues to expand its domestic and international reach, recently introducing direct delivery services between the U.S. and Europe and forming partnerships with other carriers to strengthen its network.

These increases are slightly below those announced by FedEx and UPS for the same period.

Dollar General Expands Leadership Team Amid Competitive Challenges

Dollar General has named Kevin Pinchon as Senior Vice President of Distribution and Tom Hutchins as Senior Vice President of Technology. Pinchon, who joined in June, manages distribution strategies across several states, drawing on experience from HD Supply and Target. Hutchins, onboard since September, oversees IT operations, having previously held leadership roles at Tractor Supply Company and Office Depot.

These appointments are part of a broader leadership expansion, including ten promotions and another new hire across various departments. Dollar General's management highlighted the contributions these leaders are expected to bring in efficiency, service improvements, and technology integration.

The retailer faces inflation, stiff competition from other low-cost chains, and shrinking operating profits. Dollar General plans to open 800 new stores in 2024, maintaining its growth strategy while navigating an increasingly harsh economic environment.

Navigate Truck Rates and Financials with Entourage Freight Solutions

Trucking rates are at historic lows. While this can seem like good news for shippers looking to contract their freight or ship it via the spot market, it also means the market is somewhat unstable, and trucking carriers will do what they can to recoup costs and stay afloat.

Shippers need access to freight management services and real-time data to keep up with their shipments and stabilize operations in a volatile environment. Entourage Freight Solutions provides steady services to 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, 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.