ITS Logistics August Supply Chain Report: Tariffs Drive Mixed Impact Across Supply Chain as Industry Kicks off Peak Season

-- Warehousing prices ease, capacity tightens, and small operators drive growth while inflation and cost pressures persist. --

RENO, Nev., Aug. 21, 2025 (GLOBE NEWSWIRE) -- ITS Logistics today released the August ITS Supply Chain Report. This month, the report confirms that the trucking sector saw modest expansion in July despite larger global economic uncertainty and rising industry costs. In addition, the drayage sector experienced the second-highest volume of U.S. imports ever recorded, coming in just 555 TEUs shy of the all-time high in May 2022. In warehousing, PPI rose to 153.982, hinting at a slight recovery following a sharp decline from May to June. Overall economic performance — although still strained by inflation and labor concerns — did cool down enough to satisfy markets.

“While capacity has tightened with ongoing carrier exits, the real story is that cost pressures remain significant and freight rates, broadly, are still challenged—just barely covering the bills,” said Josh Allen, Chief Commercial Officer at ITS Logistics. “This isn’t broad-based recovery. The opportunities that exist are selective, shaped by tariff volatility and a shifting regulatory environment.”

The Logistics Managers Index (LMI) revealed a reading of 59.2, with growth being driven by smaller logistics companies and demand for freight movement of frontloaded goods from ports and distribution centers. FreightWaves recently reported that smaller firms — companies with less than 1,000 employees — and upstream companies are what impacted activity in the supply chain during July, with both reporting higher inventories. Smaller companies confirmed swift expansion in inventory at 64.8, while upstream firms experienced an expansion of 58.5, versus the contraction among downstream companies at 47.6. The decline in stock levels across retailers was attributed to the intermittent nature of tariffs. Additionally, warehousing also saw a modest uptick in the Producer Price Index, reflecting early stabilizing and potential normalization of operational activity.

Across the U.S., the top ten import gateways all saw strong gains in import volumes — a rise that reflects traditional seasonal demand as well as suspected frontloading activity ahead of tariff policy changes. The convergence resulted in the second-highest import volume on record, just shy of post pandemic fueled operations in May of 2022.

“These isolated positive influxes across the supply chain, such as port volumes and LMI growth, contrast broader inflation trends,” Allen continued. “More than likely, these gains will average out over the coming months.”

While capacity remains closely monitored by experts, fuel prices are a growing challenge across the freight industry. In one survey, more than half of U.S. transport and shipping firms reported spending at least 20% of their operating budget on fuel. ITS Logistics recently introduced the ITS Logistics Fuel Card to provide carriers with more access to working capital and help mitigate price increases, while also supporting modern business needs like fraud protection and cashflow analytics.

Just yesterday, it was announced that Federal Reserve officials raised concerns surrounding the state of the labor market and inflation. The majority of officials agreed that lowering interest rates now would be too soon, while the July meeting minutes also showed a difference of opinions across the collective among the central bankers, whose vote to hold their key rate steady came despite receiving objections from two Fed governors who were in favor of cutting. Policymakers also voiced concerns about rising threats to the economy that would justify further monitoring.

ITS Logistics offers a full suite of network transportation solutions across North America and distribution and fulfillment services to 95% of the U.S. population within two days. These services include drayage and intermodal in 22 coastal ports and 30 rail ramps, a full suite of asset and asset-lite transportation solutions, omnichannel distribution and fulfillment, LTL, and outbound small parcel.

The monthly ITS Supply Chain Report serves to inform ITS employees, partners, and customers of marketplace changes and updates. The information in the report combines data provided through DAT and various industry sources with insights from the ITS team. Visit here for a comprehensive copy of the report with expected industry insights and market updates.

About ITS Logistics
ITS Logistics is one of North America's fastest-growing, asset-based modern 3PLs, providing solutions for the industry’s most complicated supply chain challenges. With a people-first culture committed to excellence, the company relentlessly strives to deliver unmatched value through best-in-class service, expertise, and innovation. The ITS Logistics portfolio features North America's #18 asset-lite freight brokerage, a top drayage and intermodal solution, an asset-based dedicated fleet, an innovative cloud-based technology ecosystem, and a nationwide distribution and fulfillment network.

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ITS Logistics August Supply Chain Report

Tariffs Drive Mixed Impact Across Supply Chain as Industry Kicks off Peak Season

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