Tariff Volatility and Hurricane Season Pose Challenges for U.S. Supply Chain
August 1st, 2025 12:07 AM
By: Advos Staff Reporter
The July ITS Supply Chain Report highlights the ongoing impact of tariff volatility on the U.S. economy and drayage market, alongside concerns over an above-average hurricane season affecting the trucking industry.

The July ITS Supply Chain Report sheds light on the significant challenges facing the U.S. economy and the national drayage market due to ongoing tariff volatility. According to the report, the U.S. economy is in a phase of controlled cooling, with growth slowing but remaining positive, and inflation gradually easing. However, consumers are starting to feel the impact of tariffs, which continue to influence broader economic trends.
Josh Allen, Chief Commercial Officer at ITS Logistics, emphasized the potential disruptions in trade flows and increased costs for businesses and consumers as the full economic effects of recent tariffs begin to manifest. This situation is compounded by the trucking industry's preparation for an above-average hurricane season, which could further strain domestic supply chains during their historically busiest time.
The drayage market has seen a 1.8% month-over-month rise in June imports, with significant volume increases at the Port of Los Angeles, contrasting with declines at East Coast and secondary ports. This mixed performance underscores the ongoing shifts in port routing and regional demand influenced by tariff volatility.
Fuel prices have also risen, with the national average diesel price reaching $3.75 per gallon, the highest since last July. The Gulf Coast region experienced the most significant weekly increase at 7.3 cents. These developments come as the industry braces for a hurricane season predicted by the National Oceanic and Atmospheric Administration to have a 60% likelihood of being above normal, with forecasts of 13 to 19 named storms.
Despite these challenges, the warehousing market shows signs of rebalancing, with the Producer Price Index for Warehousing and Storage declining 1.4% from May to June 2025. This trend suggests reduced pricing leverage for warehousing providers but also presents new opportunities and challenges for shippers in the latter half of 2025.
For more detailed insights and market updates, the full ITS Supply Chain Report is available here.
Source Statement
This news article relied primarily on a press release disributed by citybiz. You can read the source press release here,
