In April, tariff uncertainty was fueling fears of a reduced freight demand. This fear appears to have subsided slightly, as now only 31% of freight firms are preparing for a reduced demand, compared to 40% previously, according to a survey produced by Tech.co.
“It's been a turbulent year for the logistics industry, but it appears that initial fears around rising costs, caused by tariff uncertainty, are subsiding according to our latest tech.co research. While the industry isn't quite out of the woods yet, it does offer a welcome reprieve for a sector that is under more pressure than ever,” says Jack Turner, editor Tech.co.
Key takeaways:
· Trucking firms could also be at risk of facing vehicle and equipment cost inflation as a result of tariffs.
· In April, 58% of surveyed U.S. freight businesses were preparing for soaring vehicle and equipment costs as a direct result of tariffs.
· This concern has receded. In the most recent poll taken in June, 50% of businesses were preparing for soaring vehicle and equipment costs, an 8% point dip.
· The possibility of tariffs also inflating vehicle and equipment costs is an understandable concern, as 69% of surveyed freight firms say tariffs have already affected their company’s operations.
· Although overall concern for tariff impact is declining, logistics businesses are still under strain from challenging economic conditions.
· Vehicle upkeep and managing financial pressures feature top of the strategic priorities list for June, indicating that economic pressure remains heightened.
