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.
The State of Tariffs and Their Impact on Supply Chains
U.S. Tariff on Canadian Aluminum (50%)
The U.S. has imposed a 50% tariff on aluminum imports from Canada and a 25% tariff on steel and aluminum imports from most countries. The U.S. produces only 670,000 tons of primary aluminum annually, while it imports over 2 million tons from Canada.
Industries Affected:
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- Automotive: Higher material costs for vehicle production.
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- Packaging: Increased costs for aluminum cans and food containers.
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- Manufacturing: Rising expenses for aluminum-based products.
U.S.-China Trade War Intensifies
The U.S. has added a 20% blanket tariff on top of existing 10% duties on Chinese imports. China has responded with up to 15% tariffs on U.S. farm goods like chicken and pork. The U.S. has also signed a measure allowing for reciprocal tariffs by April 2.
Industries Affected:
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- Agriculture: Farmers face declining exports and higher storage costs for unsold goods.
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- Retail & Consumer Goods: Increased costs for Chinese-manufactured goods, affecting pricing and inventory planning.
Carrier Operating Costs and Freight Rates
Despite falling fuel prices, carrier operating costs remain elevated. Long-haul spot market operating costs averaged $1.80 per mile in February 2025, consistent with 2024 levels but still $0.18 per mile higher than pre-pandemic rates in 2019.
Meanwhile, dry van linehaul rates have struggled to keep pace with rising expenses. February spot rates averaged $1.66 per mile nationally, only $0.04 above 2019 levels, reinforcing concerns about profitability for smaller carriers.
Tariff Impact on Carrier Costs
Potential job losses: Rising costs may force businesses to cut logistics
Higher fuel costs: If tariffs disrupt global oil imports, diesel prices may rise despite recent declines.
Increased compliance costs: Carriers will need to invest in updated documentation, customs declarations, and compliance checks.