Expect ‘subdued’ peak container season in wake of tariffs, says analyst

Recent policy changes by the Trump administration — call it an upheaval — are reshaping the dynamics of international commerce, and have profound implications for freight and logistics, says a supply chain analyst.

The scope of the current tariff implementations is unprecedented, both in terms of the levels applied to China and the high rates extended to other U.S. trading partners, said Judah Levine, head of research for Freightos, in a new report. Unlike previous trade tensions where flows simply shifted, the breadth of these tariffs means U.S. import costs will inevitably rise.

Most economists now predict slower U.S. gross domestic product (GDP) growth, an increased likelihood of recessions both domestically and globally, and a potential contraction in global trade. These factors will inevitably impact the freight market, particularly ocean freight and air cargo, said Levine.