The Headlines: The tariff roller coaster has been manageable for ports, at least on the US West Coast, with impact being nowhere near the pandemic peaks (so far). Notable is that a White House spokesperson recently indicated the end date for the 90-day tariff pause is ”flexible”. However, European and Latin American ports have had a more difficult time with congestion thanks to several other ongoing problems, including service realignments, labor disruptions, and capacity growth.

What’s Important: Many analysts are expecting the mini surge from the tariff suspension to work through the system in a few months. That said, a full and sudden end to Chinese and/ or EU tariffs could be more impactful and unleash a flood of port activity. Like every part of the supply chain right now, there is a lot to be mindful of.

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The Headlines: The aforementioned congestion at Europe’s ports is expected to ease in Q3. But another factor is likely to continue to impact the region’s supply chains. After two years of decline, China-EU rail freight volumes are back on track, with westbound flows last year soaring 130% year on year.

What’s Important: There are long term issues impacting Europe. For one, there is little optimism that the long-standing issues in the Red Sea will be resolved anytime soon. If anything, they are going from bad to worse. On top of that, the Ukraine war appears no closer to resolution, either. In other words, geopolitics remains the theme for European supply chains. Work closely with your forwarder to understand how current events may impact your company.

The Headlines: The ocean rate spike that happened when the tariffs were paused appears to have some staying power going into Q3. However, like the broader costs across the global supply chain, the long-term trend will be at the mercy of trade talks between the US and China. That said, the reality is markets are likely going to have to learn to live with the uncertainty.

What’s Important: Although substantive details are lacking, President Trump has indicated the US/ China talks are successfully progressing. US importers need to remember that all indications are that the US is still moving forward with its plan to charge port fees for China-built vessels, a cost that will change the cost structure of ocean shipping. Everything should be on the table for importers when it comes to evaluating ocean routing options because many cost inputs continue to change.

The Headlines: The air carriers have benefited from elevated demand in 2025. Even with capacity added to the market, demand is up 5.8% YoY. This trend is attributed to the pull-forward effect of the tariffs earlier this year. Seasonal shipping patterns have also kept rates strong.

What’s Important: A positive for shippers, lower fuel costs have helped offset some of the higher rates. Many analysts are expecting that the strong demand will soften as the impact of tariffs catch up to the air freight market, as it has for ocean freight. Data shows global manufacturing is slowing as well. In such a dynamic market, importers should evaluate shipments case-by-case and look for opportunities using different modes when possible.

The Headlines: It’s not news to say that the US freight market is in a recession. Each bit of optimism that’s sprung up over the past several years since the pandemic has fizzled from the perspective of most domestic logistics providers. Small positives include growth in intermodal and the DOT eliminating some “outdated” regulations that are hindering trucking companies’ operating efficiencies.

What’s Important: From a shipper’s perspective these headlines are largely a positive because rates are low, although with so much competition being driven from the market once things turn around the remaining logistics companies will have more pricing power. At the same time, lower fuel costs YoY is a positive for everyone. Be warned, however, freight markets are cyclical and this buyer’s market for freight will not last forever.

The Headlines: The May 2025 (the most recent data available) Logistics Manager’s Index Report (LMI) came in at 59.4. It reports that growth is INCREASING AT AN INCREASING RATE for: Inventory Costs, Warehousing Utilization, and Transportation Prices.

What’s Important: The pull forward effect from tariffs may have depressed ocean rates earlier in the year as demand dried up in April, but the data suggests that companies needing extra warehouse space are the ones paying for it. So for some, it may be a wash for logistics’ budgets. Regardless the whip-saw effect of tariffs on costs up and down the supply chain is likely to continue in Q3.

The Headlines: The LRMI for Q3 offers contrast to the previous quarter when nine out of ten risk categories increased; instead, in Q3, eight out of ten risks declined, marking a modest easing overall. Supplier Risk remains the highest, reflecting continued anxiety over sole-source dependencies, geographic concentration, quality issues, and price volatility.

What’s Important: Despite the drumbeat of tariff news, the LMRI showing so many risk categories declining may indicate supply chains are getting used to the uncertainty. A part of that could be that companies now feel they saw the worst tariffs could get in April and everything moving forward will be comparatively tempered. Regardless, there is still risk in the market for companies, making flexibility and diligence as important as ever for supply chains.

The Headlines: The awareness of how geopolitics affect supply chains has reached new heights. Building on our collective experience from the pandemic, the impact of world events and how interconnected supply chains really are is again top of mind for a lot of people outside of supply chain circles. Starting with the war in Ukraine and Red Sea crisis, the supply chain uncertainty caused by tariffs and the new conflict in the Middle East have become daily conversations for all us.

What’s Important: With all of these events still relevant and impactful, the remainder of 2025 will be a challenge for all logistics professionals. Planning, sourcing, shipping… every part of the supply chain has been, or could be, disrupted with little notice. This means resilience and flexibility are more important than ever, as are open communication with partners, suppliers, and customers.