Newsletter: Feb 19, 2025

February Freight Index Highlights: Tariffs and Port Operations

Post-Lunar New Year Normalization: ITS Logistics reports that U.S. port and rail operations have stabilized following the Lunar New Year peak and proactive inventory adjustments.
Potential Tariff Implications: President Trump's proposed tariffs—including a 25% duty on non-energy imports from Canada and 10% on Canadian energy imports—could disrupt trade lanes and impact supply chains.
Impact on Trucking Companies: The proposed tariffs may lead to increased costs for cross-border freight, affecting trucking operations and necessitating strategic adjustments in routing and pricing.

Trump Plans 25% Auto Tariffs—What It Means for Supply Chains

Tariffs on the Way: Former President Trump has announced plans for a 25% tariff on imported cars, along with similar duties on pharmaceuticals and semiconductors. The move is aimed at reducing trade imbalances, particularly with the EU and other key trading partners.
Targeting ‘Unfair’ Trade Practices: Trump argues that U.S. auto manufacturers face higher tariffs abroad (like the EU’s 10% duty on U.S. vehicles), while foreign automakers benefit from lower import duties in the U.S.

Impact on Trucking and Supply Chains

Higher Equipment Costs: Trucking companies that rely on imported trucks, trailers, or parts could see rising prices if these tariffs extend beyond passenger vehicles. This could increase operational costs for fleets already dealing with high expenses.
Slower Trade, Less Freight: If tariffs dampen international trade, companies moving imports and exports through ports may see lower volumes, affecting drayage providers, intermodal operators, and logistics firms dependent on global freight movement.

Tenstreet Acquired TextLocate

Driver recruiting platform Tenstreet announced Monday it has acquired driver tracking software company TextLocate for an undisclosed sum.The acquisition aims to integrate TextLocate's driver visibility and communication capabilities into Tenstreet's platform, providing clients with improved tools for driver engagement.
Expansion of Service Offerings: By incorporating TextLocate's technology, Tenstreet plans to broaden its service offerings, enhancing the efficiency and effectiveness of driver recruitment and management processes.
Strategic Growth: This move reflects Tenstreet's strategy to grow its market presence and provide comprehensive solutions in the transportation industry's driver management sector.

Is Transportation Missing Its AI Moment?

A new economic index report from Anthropic, the company behind AI assistant Claude, reveals a significant disparity between AI engagement and workforce distribution in the transportation industry. The data shows that while transportation and material handling represents 9.1% of U.S. workers, it accounts for just 0.3% of AI assistant interactions. Read More...

Who's Buying Freight Forwarder, Forto?

Freight forwarder Forto, previously valued at $2.1 billion in 2022, is seeking a buyer, according to reports from The Information and FreightWaves. The German-based forwarder claims to be working with investment banks to explore options including a potential merger or sale. Read More...