Tariff Volatility and Economic Shifts: Key Insights for Logistics in Q3 2025

The latest ITS Logistics July Supply Chain Report, released on July 24, 2025, highlights the persistent impact of tariff volatility on the U.S. economy and the crucial drayage market. Businesses are navigating potential trade flow disruptions and rising costs, while the industry also braces for an anticipated above-average hurricane season.

Despite these challenges, the U.S. economy is currently experiencing a “controlled cooling” with sustained positive growth, a stable labor market, and easing inflation. Freight rates remain steady, though diesel prices have reached their highest point since last July at $3.75 per gallon.

An interesting development is the 1.8% month-over-month increase in June imports for the drayage market, a deviation from typical midsummer trends, notably driven by significant volume increases at the Port of Los Angeles. Furthermore, the warehousing sector shows promising signs of rebalancing, indicated by a decline in the Producer Price Index for Warehousing and Storage, suggesting emerging opportunities amidst market adjustments. This comprehensive report, combining data from leading industry sources and ITS team insights, offers vital intelligence for navigating ongoing marketplace changes.

Source:  ITS Logistics July Supply Chain Report (published by GlobeNewswire)