Industry Insights
February 2025
By PGL
Welcome to the PGL Industry Insights report for March 2025.
President Trump signed a proclamation imposing 25% tariffs on imported automobiles and key auto parts under Section 232 of the Trade Expansion Act. Importers of automobiles under the United States-Mexico-Canada Agreement can apply for certification of their US content, with tariffs applying only to non-U.S. portions.
For the fourth consecutive week, U.S. rail traffic rose over 5% year-over-year, reaching almost half a million carloads and intermodal units. Growth was led by metallic ores, minerals, and coal, while forest product shipments declined.
Post-Lunar New Year, trans-Pacific shipping rates have eased, despite stronger volumes. Rates sit at 20% below 2024 lows. Asia-Europe rates have also fallen due to weaker demand and new carrier alliances.
After three weeks of declines, diesel prices rose 1.8 cents to $3.567 per gallon. Market uncertainty, sanctions on Iranian oil, and rising ultra-low sulfur diesel futures contributed to the increase.
In Labor News, rail workers ratified a new contract with the National Carriers’
Conference Committee. The deal guarantees 17.5% wage increases, improved healthcare, and more vacation time.
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