Back It Up: May 2025 Market Report

May was a complex and volatile month for the transportation sector, mainly driven by escalating global trade tensions. New 50% tariffs on imported steel and aluminum have officially taken effect, creating widespread concern across industries and signaling shifts in freight patterns. While some relief was noted, such as the Trump administration easing tariffs on certain auto industry metals, the overall sentiment pointed towards a mounting toll from trade wars, with forecasts of major layoffs in both trucking and retail sectors. Despite these challenges, there was a notable, double-digit increase in China-U.S. container shipping rates, indicating tightening capacity on key international lanes.

Domestically, the industry navigated operational challenges and evolving technological landscapes. A three-day rail strike in New Jersey caused significant disruption before a deal was reached. Meanwhile, discussions around the illegal use of foreign drivers highlighted ongoing concerns about fair competition and wages within the U.S. trucking industry. On the innovation front, autonomous trucking continued its progress, with Aurora’s driverless trucks logging substantial commercial miles in Texas, pushing closer to broader deployment. Amidst these shifts, short-haul freight emerged as a crucial economic bellwether, reflecting localized manufacturing and consumer activity in a market otherwise grappling with uncertainty.