In early June, ocean container rates from China to the U.S. West Coast plummeted by more than 50%, falling from a peak of around $6,000 to roughly $2,500 per 40-foot container, according to Reuters. The initial surge—driven by importers rushing goods amid a temporary reprieve from 145% tariffs—proved unsustainable, as demand failed to rebound meaningfully even after tariffs were reduced to 30%.
Maritime consultancy Drewry reported a second straight 9% drop in its World Container Index, signaling weakening shipment volumes. Although U.S. consumers initially skirted price hikes thanks to stockpiled goods, major retailers—including Walmart—have begun increasing prices. Federal Reserve Chair Jerome Powell cautioned that tariffs may fuel inflation during the summer.
With tomorrow’s July 9 deadline looming for possible new tariff rounds, the U.S.–China trade landscape remains uncertain. Economists warn that waning import volumes could suppress economic growth, while persistent trade tension may sustain higher consumer prices.
Truckers are more productive while warehousing workers are less productive, according to Forbes - what does this mean for brands?
Trucking productivity has improved over the past year, driven by fewer hours worked (down 4.5%) but only a modest pay cut (–2.5%) for long-haul drivers. This implies that companies are moving more freight per hour of labor, enhancing efficiency in long-haul operations.
In contrast, warehouse productivity has slipped—a concerning fall amid ongoing inflation and hiring challenges. Demand for labor and wage pressures in the warehouse sector are rising even as throughput per worker slows.
So what does this mean for a brand shipping freight and/or outsourcing their fulfillment work? Probably not too much. On the trucking side, owner/operators and logistics companies will probably take the profits of their new found efficiency. But an efficient and smooth logistics market is better for everyone shipping goods, even if the cost savings are not passed on. On the warehousing side, expect the costs to be passed on. It won’t be a quick or direct thing, but if warehouses are struggling with workforce quality then that inefficiency will eventually show up in pick, pack, and account management fees for warehouses and 3PLs.