Companies dealing with "constant" supply chain changes; Consumer spending declines

Global supply chains are shifting from dealing with occasional disruptions to navigating a constant state of crisis, according to Freight Waves. This “compound disruption” environment—marked by overlapping threats like geopolitical instability, labor unrest, climate events, and regulatory changes—is now the norm, not the exception.

Rather than react to each crisis individually, businesses are being urged to build proactive, resilient supply chains. Regulatory uncertainty, especially from rapid U.S. trade policy changes under the IEEPA, has made long-term logistics planning more difficult. 

-Tariff uncertainties loom large. 

-Climate and weather are having outsized influence.

To adapt, companies need to move beyond reactive models and invest in real-time visibility, data-driven planning, and interoperable digital systems. Historical data—such as how quickly ports recover from natural disasters—can inform smarter forecasting and mitigation strategies. More employees focused on strategy, forecasting, and hedging are necessary to prepare a business for shifting realities.

Shippers, carriers, and service providers that share data and align contingency plans will be better equipped to manage persistent disruption. The new path forward isn’t about bouncing back from the next shock—it’s about being ready for the next dozen, all at once.

In May 2025, U.S. consumer spending unexpectedly declined by 0.1%, marking the second monthly drop this year. This slowdown followed a wave of pre‑tariff purchases—particularly of durable goods like vehicles—which have now tapered off 

-Spending on goods fell sharply (‑0.8%), while spending on services rose modestly at just 0.1%, the weakest gain since November 2020.

-Inflation remained moderate: the PCE Price Index edged up 0.1% month‑over‑month, with core PCE inflation rising by 0.2%, bringing the annual core rate to 2.7% 

-Despite the softness in spending, wage growth (0.4%) helped cushion the impact, even as personal income overall dipped 0.4%, and the personal saving rate fell to 4.5% 

Federal Reserve officials are maintaining a “wait-and-see” approach. They’re holding interest rates steady (4.25–4.50%) while assessing whether tariffs will eventually drive inflation higher. 

Analysts noted that the spending decline reflects a withdrawal of demand after consumers rushed to buy ahead of tariffs. As inventories built up pre-tariff run down, businesses may soon pass on higher costs—but continued weak demand could dampen future inflation and consumer spending.