Supply Chain Industry Insights – February 2025

Industry Insights

February 2025

By PGL

Welcome to the PGL Industry Insights report for February 2025.

The Port of Los Angeles had its busiest January ever, moving more cargo than in any previous year. This surge was driven by a strong economy and businesses shipping goods early to avoid possible tariffs and delays from the Lunar New Year. Imports increased significantly, while exports declined. The rise in empty containers leaving the port suggests that even more shipments are on the way.

Rail traffic in the U.S. showed slight growth in mid-February, with container shipments rising while traditional freight like coal and chemicals declined. Canada saw modest rail growth, while Mexico reported lower volumes. Despite mixed results, overall rail activity across North America has been trending upward this year.

Ongoing tariff changes are keeping ocean shipping costs high. Businesses are rushing to move goods ahead of possible price increases, pushing up shipping rates. Analysts warn that if new tariffs take effect later this year, container costs could hit their highest levels since last summer.

Diesel prices have been creeping up, with only small changes week to week. The increase follows new U.S. sanctions on Russian oil, which could tighten global supply.

While prices have not spiked sharply, the steady upward trend is something to watch. In Laredo, Texas, the busiest border crossing for U.S.-Mexico trade, fewer trucks are available for cross-border shipments, as many carriers are shifting their focus to
California where demand for imports remains strong. Trade policy uncertainty and shifting market conditions are making it harder for shippers to secure capacity.

That’s it for this month’s report. Subscribe to our channel to make sure you get the latest supply chain insights. As always, PGL will be there to keep you informed 24/7/365.

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