US Manufacturing on Road to Recovery Amid Tariffs Threats

Nick Terry • January 16, 2025

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The trucking industry and the freight world are gearing up for a new Trump presidency. While some experts believe tariffs would help increase domestic manufacturing, leading to more trucking moves, others contend that tariffs can harm the economy and reduce overall freight needs.

The pandemic exposed a lot of supply chains across the U.S. and the world at large. The devastating disruptions from then still have some ripple effects to this day. However, learning from mistakes is what makes or breaks any business. To that effect, experts and business leaders gathered at The Transportation Research Board’s 104th annual meeting to discuss the impacts of the pandemic and present supply chain vulnerabilities and strategies for going forward, especially in a year that is set to see an escalation in international trade policy wars.

Continue reading as we discuss some of the best topics, news, and trends in the freight world.

Manufacturing Sector Shows Signs of Recovery Amid Challenges

According to the Institute for Supply Management’s Purchasing Managers Index (PMI), the U.S. manufacturing sector ended 2024 with improved demand and production, rising as much as 49.3% in December. New orders and output climbed above growth thresholds, setting the stage for potential expansion in 2025.

Seven industries, including primary metals, electrical equipment, and plastics, reported growth during the manufacturing sector’s recovery. Concerns over potential tariff hikes have prompted manufacturers to explore alternative sourcing strategies. While tariff impacts are expected later in the year, cautious optimism remains over regulatory changes under the incoming administration.

S&P Global’s PMI painted a slightly less optimistic picture, declining to 49.4 on the index due to drops in demand and production. Rising costs for raw materials like aluminum and copper added to challenges, although manufacturers anticipate improved employment and supply chain activity as demand increases in the coming months.

Building Resilient Supply Chains by Learning from Past Disruptions

The Transportation Research Board’s 104th annual meeting highlighted the importance of preparing supply chains for future disasters and catastrophic events. Panelists emphasized that while disasters often allow local resources to respond within days, catastrophes overwhelm local capacity, requiring stronger preparedness measures.

Speakers discussed how the pandemic exposed vulnerabilities in global logistics and prompted new strategies to mitigate disruptions. These include scenario-based exercises, pre-positioning vital supplies, and fostering collaboration among ports, rail, and trucking systems. They also discussed the need for diversified port use, better infrastructure, and unified policies across jurisdictions.

From handling labor strikes to addressing extreme weather impacts, experts stressed the importance of proactive planning, innovation, and balancing economic considerations with long-term resilience. As global supply chains face rising pressures, stakeholders must prioritize flexibility and coordination to navigate future challenges effectively.

Biden Administration Adjusts Rules for Hydrogen Tax Credit to Boost Domestic Production

The Biden administration has revised rules governing a key tax credit for hydrogen production, addressing concerns from industry stakeholders. The updated guidelines, released by the Treasury Department, aim to support domestic hydrogen manufacturing while maintaining environmental standards.

Changes include extended timelines for clean energy alignment with hydrogen production, expanded eligibility for certain nuclear power plants, and allowances for hydrogen produced from natural gas using carbon capture. Renewable natural gas from sources like wastewater, animal manure, and coal mines also qualifies.

The credit, offering up to $3 per kilogram, is designed to promote hydrogen as a cleaner alternative for industries such as steelmaking and heavy transportation. Developers and companies welcomed the revisions, which they see as critical for advancing U.S. leadership in hydrogen energy.

Amazon Reaches Settlement with OSHA over Workplace Safety

Amazon and the Occupational Safety and Health Administration (OSHA) have reached a settlement addressing allegations of ergonomic risks and workplace safety issues at the company’s facilities. This agreement concludes a multisite investigation spanning over a decade and resolves 10 cases previously set to go to trial next year.

Amazon has agreed to improve policies at a facility in Illinois cited for handling bulky items and will allow OSHA monitoring inspections at several locations. The company also accepted more than 90% of the penalties related to the citations. OSHA withdrew most ergonomic citations but clarified that some withdrawals were influenced by an ongoing investigation by the U.S. Attorney’s Office for the Southern District of New York.

The settlement requires Amazon to implement corporatewide ergonomic improvements across its warehouses. This comes amid increased scrutiny of working conditions, with recent strikes by unionized workers and a Senate report criticizing Amazon’s warehouse safety practices. Amazon has contested these claims, describing the report as outdated and misleading.

Shifts in Trucking Spot Rates Might Reflect Market Recovery

National trucking spot rates have shown varied movements across equipment types in recent months. Dry van rates have steadily increased, especially in December, with consecutive weekly gains and higher year-over-year averages. Reefer and flatbed rates have fluctuated, reflecting seasonal and regional factors such as holiday demand and hurricane impacts.

Capacity constraints, changes in load volumes, and external disruptions like strikes and weather events have influenced these shifts. The market is experiencing signs of recovery from prolonged contraction, with recent data hinting at a new freight cycle. Frequent updates on these rates provide a window into evolving market conditions.

Record Highway Congestion Costs Impact US Trucking in 2022

The American Transportation Research Institute (ATRI) reported that highway congestion imposed a record $108.8 billion burden on the trucking industry in 2022. This figure represents a 15% rise from the previous high of $94.6 billion in 2021, despite a slight reduction in total congestion hours, which fell by 5.4% due to a slowing freight market.

Key contributors to the surge included higher operational costs driven by increased diesel prices, supply chain disruptions affecting vehicle production and maintenance, and rising labor expenses. ATRI noted that each registered combination truck incurred an average congestion-related cost of $7,588, equivalent to 430,000 truck drivers idling for an entire work year.

Congestion also led to the waste of more than 6.4 billion gallons of diesel, adding $32.1 billion in fuel costs and generating significant environmental impacts, including 65.4 million metric tons of additional carbon dioxide emissions. The most affected areas included major metropolitan hubs like New York City, Miami, and Chicago, with smaller cities such as New Orleans, Buffalo, New York, and El Paso, Texas, experiencing sharp increases in congestion-related costs due to trade growth following the pandemic.

Although federal, state, and local governments allocated $232 billion to highway infrastructure in 2022, ATRI questioned whether these investments effectively targeted the most critical congestion hotspots. This suggests better prioritization in infrastructure planning.

2025 Trucking Conferences: Your Guide to Key Industry Events

Industry conferences remain a cornerstone for trucking professionals seeking to stay informed, connected, and competitive. These events bring together executives, analysts, and investors, offering opportunities for networking, learning, and collaboration.

The lineup of trucking conferences in 2025 includes events across the country, from SMC³’s deep dive into LTL strategies to ATA’s premier gathering for trucking leaders. Highlights from the conferences will include sessions on artificial intelligence, alternative fuels, safety innovations, and hands-on experiences with the latest equipment.

Whether you’re looking to explore emerging technologies, refine your strategies, or strengthen your industry connections, these conferences offer valuable opportunities to engage with peers and leaders shaping the future of trucking.

Navigate Truck Rates and Financials with Entourage Freight Solutions

Trucking rates are treading around 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 in a volatile environment.

Entourage Freight Solutions provides steady services that 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.

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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.