March 2025 Transportation Takeaways
As we closed out Q1, March delivered a clear message: logistics is being shaped not just by market demand, but by policy, planning, and innovation. With global trade tensions heating up, major contracts being signed, and sustainability becoming more than just a buzzword, businesses across the supply chain must stay alert and agile.
This month’s developments span the spectrum—from tariff battles with two major trading partners, to a landmark labor deal securing port stability, to the unveiling of a significant green initiative at one of the country’s busiest ports. We also take a look at how the U.S. is finally making strides on infrastructure and how new fees on foreign-made ships could disrupt global capacity.
Here’s what you need to know—and how it impacts the way your goods move in 2025 and beyond.
1. Retaliatory Tariffs from China and Canada Stir Trade Friction
The U.S. is once again facing escalating trade tensions—this time from both China and Canada. In response to continued U.S. tariffs on key imports like steel and aluminum, China and Canada have implemented retaliatory tariffs aimed squarely at American exporters. China’s focus on agricultural products such as pork and soybeans is no accident—it’s a strategic move during a politically sensitive year, aiming to impact U.S. heartland producers. Meanwhile, Canada is targeting household appliances and recreational products.
While these moves may not yet mirror the scale of 2018’s trade wars, the implications for cross-border trade are significant. American shippers working in affected sectors should prepare for price volatility, supply chain shifts, and potential demand fluctuations in international markets. The back-and-forth action signals uncertainty that could ripple into container flows, customs procedures, and carrier pricing throughout 2025.
Transportation Takeaways:
- China and Canada are imposing new tariffs in direct response to U.S. trade policies.
- Affected exports include U.S. agriculture, appliances, and recreational goods.
- Shippers should monitor duties closely and consider alternative routing or sourcing if markets shift.
For further details, read the full ISM PMI report here. If you want a deeper dive into the trade war between the USA, China and Canada read MTA’s recent post about tariff updates HERE.
2. East & Gulf Coast Ports Secure Labor Peace Through 2030
After months of behind-the-scenes negotiations, a new six-year labor agreement has been finalized between the International Longshoremen’s Association (ILA) and port employers covering East and Gulf Coast terminals. The contract, effective through September 2030, covers more than 45,000 dockworkers across 36 ports and brings wage increases, benefit protections, and commitments to automation discussions.
This agreement arrives as a welcome contrast to recent instability at West Coast ports. Shippers now have greater confidence in the operational reliability of these eastern gateways, especially as volume continues to shift away from Southern California. The resolution avoids the threat of costly slowdowns or strikes and ensures a smoother path forward for ocean freight planning, particularly for peak season and holiday inventory movements.
Transportation Takeaways:
- A six-year contract has been signed, preventing labor disruption at East & Gulf Coast ports.
- The agreement boosts worker pay and ensures healthcare and safety protections.
- Shippers can plan long-term with more confidence using East and Gulf Coast port networks.
Read more about the labor agreement from ILA’s statement.
3. Port of Long Beach Invests $57M in Clean Energy & Emissions Cuts
The Port of Long Beach is making bold environmental moves, announcing a $57 million initiative aimed at reducing emissions, electrifying terminal operations, and supporting long-term climate goals. The plan includes deployment of zero-emission cargo handling equipment, upgrades to infrastructure for clean vessel operations, and incentives for terminal operators to adopt electric trucks and charging capabilities.
With this investment, Long Beach continues its role as a frontrunner in green port operations—helping to meet California’s aggressive emissions mandates while giving logistics stakeholders cleaner options. As environmental regulations tighten and ESG (Environmental, Social, Governance) pressure grows across the supply chain, ports with sustainable infrastructure will become increasingly attractive to shippers and beneficial to compliance strategies.
Transportation Takeaways:
- Long Beach has launched a $57 million green initiative targeting emissions reduction.
- The port is supporting zero-emission trucks and electrification of equipment.
- Sustainability-minded shippers can gain ESG advantages using Long Beach terminals.
Learn more about their environmental initiatives HERE.
4. Industry Pushes Back on Proposed Fee for Chinese-Built Ships
In March, more than 30 trade associations and logistics stakeholders urged the U.S. Trade Representative (USTR) to reject a proposed usage fee targeting Chinese-built vessels calling on American ports. The proposed fee—intended to encourage use of U.S.- or ally-built ships—has drawn concern for potentially limiting capacity and raising operating costs across the maritime supply chain.
Opponents argue that with over 50% of new global shipping capacity built in China, the policy could have sweeping unintended consequences for vessel deployment, container availability, and shipping rates. With no comparable U.S.-based shipbuilding output ready to fill the gap, such a fee could disrupt trade more than it supports domestic industry. The USTR has yet to issue a final decision, but the opposition is loud and growing.
Transportation Takeaways:
- A new port usage fee could apply to Chinese-made vessels entering U.S. ports.
- Critics warn it would increase shipping costs and reduce available capacity.
- Shippers should monitor the outcome and prepare for rate volatility if enacted.
Read more about the proposed fee and the industry leaders urging caution HERE.
5. U.S. Infrastructure Gets a ‘C’—Its Highest Grade Ever
For the first time in history, U.S. infrastructure has earned a “C” grade in the American Society of Civil Engineers’ (ASCE) quadrennial report card. While still average, the grade represents the highest score the U.S. has ever received, driven by billions in recent federal infrastructure investments across highways, bridges, airports, railroads, and ports.
The report acknowledges improved project execution, smart infrastructure upgrades, and efforts to build resilience into transportation networks in the face of climate risk. For the logistics sector, this means fewer bottlenecks, better intermodal connections, and more efficient cargo movement. Still, the “C” grade is a reminder that much work remains to reach the levels of reliability and modernization seen in peer economies like Germany or Japan.
Transportation Takeaways:
- The U.S. earned a “C” in the 2025 ASCE Infrastructure Report Card—the highest ever.
- Upgrades to ports, highways, and bridges are improving logistics efficiency.
- Shippers may benefit from fewer infrastructure-related delays in the coming years.
To read the full report from the ASCE HERE.
5. Carrier Realignments Begin Reshaping the Container Shipping Landscape
Major changes are underway in global ocean freight, as new carrier alliances begin to take effect, signaling a shift in how containerized cargo will move across the world’s trade lanes. With several long-standing partnerships coming to an end—most notably the breakup of the 2M Alliance between Maersk and MSC—shipping lines are forming new strategic groupings to optimize vessel utilization, reduce costs, and expand service coverage.
Early data suggests that these new alliances will significantly impact sailing schedules, port calls, and transit times. For example, Maersk’s restructured network, now operating independently, is focused on reliability and environmental efficiency, while others, such as the Ocean Alliance, are consolidating services to balance supply with demand more aggressively. These moves come as the industry continues to adapt to a post-pandemic freight environment marked by overcapacity, softer demand, and pressure to decarbonize.
For shippers, the implications are clear: routing decisions, space availability, and transit predictability may all be subject to change. Those with fixed routing strategies or long-standing carrier relationships should be prepared to reassess service levels and stay closely connected to freight forwarders and partners as these alliances shake up the global network.
Transportation Takeaways:
- New ocean carrier alliances are changing global container shipping structures.
- Expect shifts in port rotations, transit times, and service reliability.
- Shippers should review their routing strategies and monitor alliance updates closely.
Read more from The Maritime Executive HERE.
Conclusion
March 2025 showcased a logistics landscape defined by both forward momentum and unpredictable headwinds. On the one hand, stable labor agreements and infrastructure investments bring much-needed predictability to supply chain planning. On the other, retaliatory tariffs and proposed shipping fees introduce new uncertainties that logistics professionals must navigate with care.
These crosscurrents reflect a new era where policy decisions are just as impactful as port operations. Whether your business is looking to mitigate costs, adopt greener practices, or adapt to regulatory changes, success lies in being informed and responsive.
At MTA, we help businesses stay ahead of the curve. As we move into Q2, we’ll continue to bring clarity and context to the issues that impact your bottom line—and the movement of goods across the globe. Reach out to us today to explore how we can optimize your supply chain and transportation strategies in the months ahead.
