With retailers gearing up early for the holiday season and redirecting shipments to the West Coast following the brief ILA strike, the Port of Los Angeles experienced a surge in activity. This resulted in a record-breaking September, with the port handling 954,706 TEUs and reaching an all-time high for its third-quarter volume at 2.85 million TEUs.
Meanwhile, retailers are increasingly concerned about the elections and the potential for escalating trade and tariff wars. Former President Trump has made it a centerpiece of his campaign. Concerned retailers are importing more than ever, frontloading inventories to protect themselves from any trade tariff fallout post-election season.
In this edition of The Collaborative Logistics Newsletter, we have curated relevant news and trends shaping the freight world. Continue reading to learn more.
Port of Los Angeles Breaks September Records And Sets New Quarterly High
The Port of Los Angeles continues to break container handling records, with reports showing that the port handled a record-breaking volume of 954,706 TEUs (Twenty-foot Equivalent Units) in September; a 27% year-over-year increase. The September record also contributed to an all-time high of 2.85 million TEUs handled in the third quarter alone.
Imports totaled 497,803 TEUs and were mostly driven by earlier-than-usual preparation for the peak season. The port managed to pull this off despite challenges such as dwell time and congestion in other ports. It was able to handle 13 vessels per day.
Retailers Concerned About Tariff Hikes Under New Presidency
As the elections approach and the spectre of trade wars continue to dominate the international shipping landscape, U.S. retailers are increasingly concerned about the potential for higher tariffs on imported goods, particularly those from China, as former President Donald Trump proposed. The former president has made tariffs a central campaign issue, claiming they would generate significant revenue for the U.S. while protecting domestic industries.
However, under a second Trump administration, experts argue the proposed tariff plans will only pass the cost to U.S. consumers, potentially adding $4,000 to the average household’s expenses. Despite these concerns, retailers have maintained robust shipping operations, with U.S. ports, including the Port of Los Angeles, continuing to handle record-breaking import volumes.
Freight Tonnage Declines in September, Halts Recent Gains
Trucking freight tonnage experienced some setbacks in September, following two months of growth, as the American Trucking Association (ATA) reported. The ATA For-Hire Truck Tonnage Index fell by 2.1% from August and was down 0.9% year-over-year. However, notwithstanding the decline, tonnage has risen by 1.8% since its low in January 2024. ATA Chief Economist Bob Costello noted that freight movement has been inconsistent this year, especially because of stagnant manufacturing activity.
However, he doesn’t expect much panic from the market because the overall trend in freight tonnage is upward, although recovery has been slow and challenging.
Supply Chains Shift Toward Americas, With Mexico Gaining as Nearshoring Grows
KPMG recently surveyed 250 U.S.-based executives. The results revealed that more companies serving U.S. markets are shifting their supply chains toward North and South America. The share of U.S.-serving supply chain operations in these regions is expected to rise to 69% from 59%. Mexico is the chief gainer in North America and is projected to become the second-most popular nearshoring destination.
The shift reflects the need for a broader trend toward more localized supply chains, driven by recent global crises such as the COVID-19 pandemic and the Panama Canal drought. Rising geopolitical crises also play a huge role. Companies are now focusing on reducing the number of supply chain locations and prioritizing proximity to customers to streamline operations.
Truckload Spot Rates Surge Amid Hurricane Relief
The U.S. truckload spot rates and volumes are rising again. And they are primarily driven by the demand for relief supplies after hurricanes Helene and Milton. Spot load volumes increased significantly in mid-October, with DAT Freight & Analytics reporting a 16% sequential rise and Truckstop.com showing a 6.8% week-over-week increase.
Rates remain elevated in the Southeast, with refrigerated spot rates in Florida reaching their highest levels since 2016. While national dry-van spot rates are also increasing, contract rates have flattened. Trucking companies like J.B. Hunt report more typical seasonal demand patterns but note the market hasn’t fully recovered from the freight recession.
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