At Spot, we understand the vital role that up-to-date information plays in navigating the dynamic logistics market. Each month, we bring you a comprehensive logistics market update. We dive into the latest trends, challenges, and innovations shaping the logistics sector. Join us as we empower you with the knowledge needed to make informed decisions in this fast-paced industry.
https://open.spotify.com/episode/7f23ydYGJ1wNgEnn6Y0XKW?si=f423ee9b0bbf4c50
Tariff Timeline Driving Demand Disruption
- April 2 – “Liberation Day”:
• 10% universal tariff on all imports (excl. Canada/Mexico), effective April 5
• “Reciprocal” tariffs on 60+ countries (China: 54%, Vietnam: 46%, EU: 20%)
• Announcement of De Minimis elimination for Chinese imports, effective May 2
- April 5 – Import volumes momentarily surge as tariffs take effect
- April 8 – U.S. raises China tariffs to 120%; Chinese-made electronics no longer exempt
- April 9–11 – China retaliates with 125% tariffs, rare earth export bans, and blacklisting U.S. firms
- April 10 – U.S. imposes a 90-day global tariff suspension, but raises China’s rate to 125%
- April 15 (projected) – EU rolls out $23B in retaliatory tariffs
LTL and Parcel Holding Steady as Warning Signs Emerge
LTL cost per shipment rose 1.5% quarter over quarter in Q1 2025, supported by fuel surcharges and GRIs, but faces looming softness tied to industrial slowdown and tariff impact on manufacturing inputs. The PMI returned to contraction in March, signaling a risk of near-term volume erosion.
Carrier Operating Costs Rise Under New Tariff Burden
Parts and Maintenance Costs Climbing: “Bolts, bars, anything with steel” is now significantly more expensive. Even with heavy-duty trucks exempt from direct tariffs, indirect exposure is high. Preventive maintenance is being delayed, potentially leading to increased breakdowns and rental costs.
Tariff-Induced Uncertainty: Companies are stalling investments due to policy whiplash. The White House’s 90-day “pause” came days after declaring tariffs permanent, freezing expansion plans, and curbing capital deployment.