President Donald Trump delivered a comprehensive address to Congress on March 4, outlining his administration's policy agenda and reflecting on recent developments.
One of those developments imposed a 25% tariff on imports from Canada and Mexico, citing concerns over drug trafficking and border security. Additionally, tariffs on Chinese imports were raised from 10% to 20%, marking a significant shift in U.S. trade policy. These measures are going to have a period of raised uncertainty across global supply chains, particularly in containerized trade.
“The ongoing tariff battle, with its cycle of levies and retaliatory measures, will trigger two significant ripple effects on trade: heightened uncertainty for trade partners and rising inflation for consumers—both of which ultimately weaken demand,” says Christian Roeloffs, co-founder and CEO of Container xChange.
Key takeaways:
- Uncertainty in trade policy is fueling volatility across markets, forcing the container market to move in a more fragmented and unpredictable direction and creating shocks across trade routes that impact container availability, leasing rates and the resale market.
- Key risks for the container logistics industry entail disrupted North American trade, accelerated efforts to shift sourcing trends and uncertain demand for containers.
- Supply chain professionals are encouraged to monitor policy changes closely, diversify supply chain partnerships, adopt flexible leasing and trading strategies and plan for alternative routes.
“Tariffs won’t stop trade—they’ll simply reshape its flow. As companies adjust sourcing strategies, demand and supply hotspots will shift. Higher import costs from Canada, Mexico, and China may soften demand for containerized shipments on key U.S. routes, creating challenges for businesses that rely on stable freight rates and predictable cargo movement,” says Roeloffs. “Companies impacted by these tariffs will adapt by sourcing from alternative markets, potentially increasing trade through Southeast Asia and South America while reducing container movement along traditional Transpacific and North American cross-border routes.”
“While tariffs may dampen demand in some regions, they could fuel it elsewhere. Rising costs for importers may slow ocean freight demand, impacting container prices and lease rates, but new sourcing hubs will emerge, creating fresh demand centers. This shifting landscape could lead to localized container shortages in high-growth areas and surpluses in others, requiring the industry to stay agile in response to evolving trade dynamics,” Roeloffs adds.
