Despite the threat of tariffs and trade wars with Mexico and other countries, most U.S. logistics operators are standing firm in their border investments because they believe these investments will have long-term impacts that overshadow any of the effects of the new tariffs.
On the other hand, following the rise in geopolitical crises that impacted much of ocean freight in 2024, shipping lines have increased their container ship orders. While the surge in demand is understandable, driven by shipping lines benefiting from higher freight rates and substantial profits, many fear that this increased demand for container ships could lead to overcapacity.
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Investments in infrastructure supporting U.S.-Mexico trade have surged, with billions directed toward truck terminals, rail yards, and warehouses. Despite the potential imposition of new tariffs by President-elect Donald Trump, logistics operators remain optimistic about the long-term returns of their investment. Companies such as C.H. Robinson, Schneider, and Kuehne + Nagel have expanded facilities to meet the growing demand driven by nearshoring and manufacturing shifts.
Significant developments along the U.S.-Mexico border have included the $31 billion Canadian Pacific and Kansas City Southern merger that created a direct rail link across North America. While uncertainties persist, experts believe Mexico’s manufacturing advantages will sustain these investments, regardless of potential policy shifts.
Shipowners have ordered container vessels at an unprecedented rate, reaching a capacity of 8.4 million twenty-foot equivalent units (TEUs), the highest on record. The increase in orders follows soaring profits spurred by disruptions like Houthi attacks in the Red Sea, which elevated freight rates. Major players like the Mediterranean Shipping Company and CMA-CGM are leading this expansion despite concerns about overcapacity amid global trade uncertainties.
Supply is projected to grow 46% in 2026 compared to 2019, far outpacing the expected demand growth of 22%. Factors such as trade policies and the upcoming Hong Kong Convention on Ship Recycling may further complicate the industry’s outlook.
In 2024, retailers reported $103 billion in losses attributed to fraudulent returns, accounting for 15% of the total returns of $685 billion. These returns represented 13% of retail sales, reaching $5.19 trillion. Common fraudulent activities included returning stolen goods, “wardrobing,” and using stolen or counterfeit payment methods. Over the past year, 84% of retailers modified return policies to address these issues. However, stricter measures have not significantly reduced fraud and have occasionally strained customer relationships.
Experts advocate for data-driven solutions to combat fraudulent behavior without jeopardizing consumer loyalty. Online shopping drives higher return rates, with nearly 40% of consumers returning at least one online purchase monthly. Retailers are balancing the need to reduce losses while maintaining a positive shopping experience.
President Joe Biden has blocked Nippon Steel’s $14.1 billion bid to acquire U.S. Steel, citing risks to national security and the importance of maintaining domestic control of a critical industry. The decision aligns with previous administration efforts to strengthen the U.S. steel sector, including increased tariffs on Chinese imports and investments in domestic manufacturing.
The Committee on Foreign Investment in the United States (CFIUS) had earlier raised concerns over the deal but did not issue a formal recommendation. Nippon Steel has criticized the decision as politically motivated, and legal challenges are expected from both sides.
U.S. Steel, which is struggling financially, may face additional challenges finding a new buyer. Cleveland-Cliffs Inc., a potential alternative, recently completed another acquisition and may not renew its interest.
The blocked deal underscores broader concerns about foreign ownership in strategic industries and trade practices affecting the U.S. market.
Fueled by geopolitical tensions, climate risks, labor unrest, and material shortages, supply chain disruptions continue to challenge businesses in 2025. These issues have become routine rather than exceptional, necessitating proactive measures from procurement organizations.
Companies are urged to prioritize connected systems, enhance data visibility, and adopt AI-driven technologies to better navigate challenges.
A recent survey revealed that 84% of companies faced disruptions in 2024, with 46% reporting profit declines due to rising costs. Industry leaders emphasize contingency planning, nearshoring, and reengineering supply chains as essential strategies. Establishing partnerships with adaptive logistics providers and leveraging technology are critical steps to manage risks and sustain growth.
While challenges remain widespread, 93% of supply chain leaders express confidence in their resilience, underscoring the importance of innovation and proactive risk management for future stability.
The freight market may face significant challenges, navigating it doesn’t have to be complicated. With the right platform, you can read the market quickly enough. EKA Solutions will help you enhance security, streamline your transportation process, and improve efficiency throughout your business.
At EKA Solutions, we leverage experts to build and run our robust platform, ensuring zero friction at every workflow step. Our innovative, cost-effective, user-friendly ecosystem for carriers, brokers, and shippers prioritizes transparency, efficiency, and robust capabilities. Connect with us today to see the difference.
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