2025’s logistics risks include tariffs, labor strife
This audio is auto-generated. Please let us know if you have feedback.
The new year will introduce a bevy of challenges for shippers’ logistics strategies.
President-elect Donald Trump’s push for higher tariffs, potential labor disruptions and pricing pressures are among the developments supply chain managers will have to navigate in 2025. No transport mode will be spared, with carriers in the ocean, air, rail, truck and parcel delivery spaces all grappling with their share of complexities.
Supply Chain Dive spoke with several experts about 2025’s logistics risks and how shippers can prepare. Here’s what we found.
ILA-USMX contract ratification, tariffs cloud ocean shipping
The ratification process for the tentative six-year union contract for East and Gulf Coast port workers will be top of mind for ocean shippers.
The deal, announced last week by the International Longshoremen’s Association and the United States Maritime Alliance, averts the risk of a potential Jan. 15 port strike. But it still needs to be approved by rank-and-file workers and port employers to take effect, and contract rejections have happened before in the supply chain world.
If a strike threat emerges again, companies can prepare by actively monitoring goods going through affected ports, balancing existing inventory levels and exploring West Coast alternatives, Brian Pacula, supply chain partner at West Monroe, told Supply Chain Dive in an email. Shippers also would also have the option of shifting to air freight if they’re willing to swallow the added cost, he added.
Beyond planning contingencies for port disruptions, shippers should consider how Trump’s proposed tariffs would impact ocean shipping lanes if they’re implemented, according to Pacula. Some companies are frontloading imports and stockpiling inventory ahead of Trump’s return to office to minimize any new tariff impacts to their bottom lines.
“At a minimum, supply chain teams should gather and organize relevant data sets, explore alternative options, and create a shortlist of strategies to assess the impact on costs, lead times and supplier…
Comments are closed, but trackbacks and pingbacks are open.