This week’s Kesco Freight Report focuses on the pressure points shaping global logistics and their implications for shippers, carriers, and freight partners alike. We start at the top: trade talks between the U.S. and China are back on the table, with both sides reopening negotiations on tariffs and rare earth exports. Shortly after, the White House extended key tariff exclusions on Chinese imports through August, buying time for importers and easing near-term cost concerns.
Still, the impact of protectionist trade policy is showing up across supply chains. The aviation industry is managing delays, higher costs, and rising safety risks tied to restricted access to critical components. Meanwhile, the U.S. trade deficit narrowed sharply as consumer imports dropped by $33 billion—a clear signal that demand is softening. On the ocean side, container rates are spiking, with shippers rushing to move cargo ahead of future tariff changes, tightening capacity and pushing up costs.
Major brands are already adjusting. Procter & Gamble is cutting up to 7,000 jobs, citing rising tariff-related costs and shifting consumer behavior—a move likely to ripple through consumer goods freight volumes. Equipment investment tells a similar story: truck orders dropped 52% year-over-year in April, showing fleets are delaying new capacity until the market becomes more predictable.
