RENO, Nev., July 24, 2025 (GLOBE NEWSWIRE) -- ITS Logistics today released the July ITS Supply Chain Report. This month, the report highlights the ongoing impact of current tariff volatility on both the U.S. economy and the national drayage market. It also highlights the potential effects that the upcoming above-average hurricane season is expected to have on the trucking industry as we enter what is historically the busiest time of the year for domestic supply chains. In addition, the warehousing industry is not immune to these changes; however, overall, the market appears to be undergoing a rebalancing event for the remainder of 2025, which could create a positive shift in the industry.

“The U.S. economy is currently in a controlled cooling,” said Josh Allen, Chief Commercial Officer at ITS Logistics. “Growth has slowed but remains positive, the labor market is slowing but stable, and inflation is gradually easing. At the same time, consumers are beginning to feel the impact of tariffs as volatility continues to influence broader economic trends.”

As reported by Reuters, the Fed last cut rates in December 2024, which was a direct response to the uncertainty surrounding President Trump's implementation of tariffs after returning to the White House and policymakers' assessment of its possible impact on prices. Fast forward to the upcoming meeting that the Fed is expected to hold from July 29-30, industry experts believe they will maintain the current benchmark rate in the 4.25% - 4.50% range. This is a level policymakers perceive as being moderately restrictive. When rate cuts resume in September, investors expect there to be a 50-50 chance that a quarter-percentage decrease will occur as inflation rose to 2.7% in June from 2.4% in the prior month.

Additionally, the drayage market experienced a 1.8% month-over-month rise in June imports – a notable contrast to typical midsummer trends. The top gateways for Chinese imports, particularly the Port of Los Angeles, also saw major volume increases, while East Coast and secondary ports experienced significant declines in activity. The mixed performance highlights ongoing shifts in port routing and regional demand as tariff volatility continues to shape the national drayage market.

“Ultimately, the full economic effects of recent tariffs are beginning to manifest, with potential disruptions in trade flows and increased costs for businesses and consumers,” continued Allen. “This comes just as the industry prepares to combat hurricane season and the trucking market continues to see marginal shifts in both spot and contract rates during peak season.”

Fuel prices have also climbed to $3.75 per gallon – their highest level since last July. The national average diesel price increased for the third consecutive week, according to U.S. Energy Information Administration data released on Tuesday. Over the past five weeks, the cost of diesel has increased a total of four times, amounting to a rise of approximately 24.1 cents. All U.S. regions experienced a rise in diesel prices, with the Gulf Coast region experiencing the most significant increase at 7.3 cents in a single week.

This news comes as freight companies prepare to navigate a hurricane season, which spans June 1 to November 30, that the National Oceanic and Atmospheric Administration (NOAA) has already predicted to have a 60% likelihood of being above normal. Current forecasts are showing between 13 and 19 named storms with winds reaching 39 miles per hour (mph) or higher. Among these, 6-10 storms are expected to intensify into hurricanes with winds of 74 mph or higher, and 3-5 of those are expected to become major hurricanes, categorized as 3, 4, or 5, with speeds exceeding 111 mph. These projections come with a 70% confidence level. The first tropical storm of the season, Andrea, appeared 2,000 miles out from Florida as early as June.

Although much of the industry is experiencing supply chain disruptions of significant magnitude, whether due to administrative decisions from the White House with tariffs or the intensifying hurricane season, the warehousing market shows a glimpse of hope for change. The Producer Price Index for Warehousing and Storage declined 1.4% from May’s 155.4 to 153.1 in June 2025, marking a continued downtrend from March and signaling reduced pricing leverage for warehousing providers. However, the market appears to be undergoing a rebalancing event that is bound to present new opportunities and challenges for shippers moving into the latter half of 2025.

ITS Logistics offers a full suite of network transportation solutions across North America and distribution and fulfillment services to 95% of the U.S. population within two days. These services include drayage and intermodal in 22 coastal ports and 30 rail ramps, a full suite of asset and asset-lite transportation solutions, omnichannel distribution and fulfillment, LTL, and outbound small parcel.
The monthly ITS Supply Chain Report serves to inform ITS employees, partners, and customers of marketplace changes and updates. The information in the report combines data provided through DAT and various industry sources with insights from the ITS team. Visit here for a comprehensive copy of the report with expected industry insights and market updates.

About ITS Logistics
ITS Logistics is one of North America's fastest-growing, asset-based modern 3PLs, providing solutions for the industry’s most complicated supply chain challenges. With a people-first culture committed to excellence, the company relentlessly strives to deliver unmatched value through best-in-class service, expertise, and innovation. The ITS Logistics portfolio features North America's #18 asset-lite freight brokerage, a top drayage and intermodal solution, an asset-based dedicated fleet, an innovative cloud-based technology ecosystem, and a nationwide distribution and fulfillment network.

Media Contact
Amber Good
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amber@leadcoverage.com

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