The 10-4 | March 2025

📰 This Edition at a Glance:

• Industry Watch – Trade war kicks off, BlackRock buys Panama Canal terminals, trucking market tightens, and the US boosts shipbuilding.
• Dray Alliance Joins ContainerPort Group – A strategic expansion to strengthen drayage capabilities on the West Coast.
• Tariffs & Trade Policy – U.S. tariffs implemented on Canada, Mexico, and China; retaliatory measures escalate trade tensions.
• Geopolitical Risks – Global supply chains brace for ongoing disruptions from Red Sea attacks and shifting port strategies.
• TPM Highlights: Check out some of the key happenings from our spot on the promenade!

Industry Watch

🌍 Trade War Tariffs Take Effect Tariffs on imports from Canada, Mexico, and China are now active, raising concerns about supply chain disruptions. Trade partners and industry leaders are pushing back with retaliatory measures, while markets react to potential impacts and mixed inflation signals. More clarity is expected as negotiations unfold in the coming weeks, with temporary exemptions on North American auto production and Mexican goods covered by the USMCA already put into place.

⚓ BlackRock Acquires Panama Canal Ports Hong Kong-based CK Hutchison Holdings is selling its majority stake in Panama Canal ports to consortium including BlackRock, Global Infrastructure Partners, and Terminal Investment Ltd. The deal follows U.S. concerns over Chinese influence, with Panama recently exiting China’s Belt and Road Initiative. The acquisition shifts control of the Balboa and Cristobal ports, aligning with U.S. strategic interests, but has drawn ire from Beijing.

🚛 Trucking Market to Tighten as Capacity Exits

Trucking demand remains on edge, but tightening may be ahead. Capacity exits continue, and tender rejection rates are increasingly reactive to market shifts. March volumes have lagged due to early imports and higher upstream inventories, while April is typically slow after Q1 rebalancing. May will be the key test for further market tightening.

🏛️ New Labor Secretary Confirmed The Senate has confirmed Lori Chavez-DeRemer as Secretary of Labor. ATA is pushing for changes to the Biden-era rule on independent contractors, advocating for truckers' right to operate as small-business owners.

🏛 New U.S. Office of Shipbuilding President Trump has launched a White House Office of Shipbuilding to revitalize U.S. maritime production and reduce dependence on Chinese-built vessels. The initiative includes tax incentives and new fees on foreign-built ships calling at U.S. ports, aiming to bolster domestic manufacturing. This move is part of broader efforts to limit China’s influence in global supply chains.

CPG Builds Out West Coast Presence with Dray Alliance Acquisition 

We’re excited to share that Dray Alliance is now part of ContainerPort Group. Dray Alliance is a West Coast drayage provider with a strong carrier network in LA/Long Beach and renowned for its real-time tracking and automated load management capabilities. This acquisition expands our presence in the country’s busiest port market while giving customers more visibility and flexibility. 

What This Means for Customers: 

✅ Expanded Capacity in LA/LB – One of the region’s largest drayage networks, now backed by CPG’s national footprint and know-how.

✅ Enhanced Shipment Visibility – Technology-driven tracking, automation, and real-time updates improve operational efficiency.

✅ Stronger Nationwide Service – As we integrate, expect greater connectivity across ports, rails, and inland hubs nationwide! 

We’re committed to making this transition seamless while delivering the same reliable service you expect from both CPG and Dray Alliance. Stay tuned for more updates as we move forward with the business integration.

 📩 Questions? Contact your CPG representative to learn more.

💰Tariffs: Shifting Costs & Supply Chain Impact 

2025 is shaping up to be another turbulent year for trade, with US tariffs and shifting policies creating uncertainty for businesses. Here’s where things stand on the tariff front:

• U.S. rolls out “reciprocal tariffs” – The Trump administration plans to "match" any tariffs imposed by other countries - including considerations for Value-Added Taxes - triggering concerns of escalating trade tensions. Key sectors like autos, electronics, and agriculture could see significant cost increases.
• 25% tariffs on Canada & Mexico take effect – Despite previous delays and omission of USMCA-qualified goods, 25% tariffs on imports from both countries have been enacted, disrupting integrated supply chains and sparking retaliatory threats, though negotiations are pending.
• China strikes back – Beijing has imposed 15% duties on US agricultural exports, targeting key products like soybeans, wheat, and poultry. Additional export restrictions on minerals used in semiconductors and batteries could tighten global supply.
• Steel & aluminum tariffs increased – The US instated 25% duties on steel and aluminum, including for key trading partners Britain and the EU, aimed at protecting domestic producers. A key component of domestic manufacturing, price increases are expected and the administration has claimed that no exemptions will be made.

What’s the justification for these increased levies? 

The Trump administration argues these tariffs will correct trade imbalances by targeting countries with large surpluses against the U.S., in theory providing a boost to domestic production. The graphic below highlights which nations are most exposed to the latest policy shifts.

What's Next? 

With new tariffs in place, businesses need to adjust freight strategies to offset rising costs. Cash flow resilience will be key as suppliers reassess inventory positions and sourcing options. 

CPG can help by optimizing landed-freight routings, leveraging expanded drayage and logistics solutions, transloading, and adjusting customer port strategies to navigate potential disruptions. With spot rates fluctuating and capacity tightening, proactive planning is essential.

⚠️ Geopolitical Risks: Navigating Trade Uncertainty 

Global trade is facing increasing instability, with shifting alliances, and geopolitical conflicts adding pressure to supply chains. From trade chokepoints to resource restrictions, here's what's happening in global trade politics.

Key Flashpoints to Watch

• Major ocean carriers remain cautious about resuming Suez Canal transits as geopolitical tensions continue to escalate. Over the past weekend, the Trump administration launched a new wave of airstrikes against Yemen’s Houthi rebels in response to their attacks on global shipping. The Houthis, an Iranian-backed militia group, have targeted over 100 merchant vessels and sunk two ships. The resumption of airstrikes against Gaza may further embolden Houthi attacks against commercial vessels in the Red Sea.

• Europe’s Shifting Trade & Defense Priorities – Following Germany’s recent elections, economic and defense policies are in flux, with increased European defense spending on the table as the U.S. signals a modified role on the continent in its rhetoric towards key European allies. Meanwhile, the EU is preparing retaliatory tariffs on U.S. exports, warning that a full-scale trade conflict could emerge if Washington further expands its protectionist measures to the continent.

• South China Sea & Pacific Trade Risks – Escalating Chinese naval aggression in the South China Sea and around Australia is raising concerns for global shipping and trade. Increased live-fire drills and military maneuvers near key trade routes pose risks to supply chain stability, especially as tensions grow between China and Western allies. Heightened uncertainty could lead to shipping disruptions and regional security concerns in the months ahead.

📌 What This Means for Shippers

With geopolitical risks hindering global trade, companies need to take proactive steps to build more resilient supply chains by:

 ✅ Diversifying sourcing and transportation routes to reduce dependence on any single market or trade lane.

✅ Leveraging intermodal transloading solutions and alternative corridors to offset maritime shipping disruptions.

✅ Strengthening supplier relationships to mitigate risks from trade disputes and policy shifts.

 For more detailed insights into how geopolitical events are impacting trade flows, check out the latest trade-related geopolitics updates here: Freightwaves: Geopolitical Trends Impacting Supply Chains.

TPM25: Insights, Connections & What’s Next 

That’s a wrap on TPM 2025! This year’s conference brought valuable conversations, strengthened partnerships, and fresh takeaways to drive the next phase of drayage and logistics. 

We came ready to talk drayage, share industry insights, and strategize with our customers. We’re leaving even more energized for what’s ahead: navigating bid season with tech-powered, human-driven solutions. 

Catch the highlights, photos and videos on our LinkedIn page!

📰 More Headlines That Matter:

 📉 Yahoo Finance: Tariffs turn into a zero-sum game for global trade

🚢 CNBC: New trade war? U.S. targets China’s containerships

📦 JOC: Tariff uncertainty forces retailers to cut spring imports

🚛 Trucking Dive: Freight rate tracker: Where are rates headed?

🏭 FreightWaves: Global manufacturing is shifting—but it’s complicated