The latest round of tariff announcements from Washington has again cast a long shadow over the freight and logistics industry.
While the intent may be to bolster domestic manufacturing and recalibrate trade balances, the unpredictable nature of tariff policy—frequent changes, exemptions, and reversals—creates instability that ripples far beyond geopolitical posturing.
Each mention of high tariffs in today’s climate erodes consumer confidence and injects uncertainty into the economy, whether a threat of an even higher rate or a rumour of exemption or temporary pauses.
Manufacturers are reluctant to commit to long-term investments in the face of shifting policy.
Retailers rush to pull inventory forward before new duties hit, causing short-term spikes followed by prolonged lulls in shipping activity.
A whiplash environment made more complicated by reciprocal tariffs results in: disrupted supply chains, higher prices, lost jobs, and ultimately, heightened inflationary pressures.
Left unchecked, these consequences could lead to calamitous long-term damage to the US economy.
Recent data from Cass Information Systems underscores the fragility of the current environment. Freight volumes continue to decline on a year-over-year basis, with March shipments flat sequentially and down 5.3% from 2024.
Though spending on freight is slightly up, that’s more a reflection of rising rates and fuel costs than actual growth.
Forward Air’s projection that 10-15% of its revenue is at risk due to tariffs is just one example of the kind of exposure our members are facing.
Despite these headwinds, there is a path forward—and that path runs through the freight forwarder.
Now, more than ever, shippers must seek the expertise of logistics professionals to evaluate the real impact of evolving trade barriers to their operations.
Forwarders are uniquely positioned to advise clients on adjusting their supply chain strategies, sourcing alternatives, and the most cost-effective and efficient routes to market – in essence, to negotiate geopolitical obstacles to trade through their well-developed expertise in the sector.
Whether it’s reconfiguring Asian sourcing strategies, considering nearshoring options, or evaluating alternative transit lanes through Mexico, Canada, or the EU, forwarders provide the intelligence and adaptability necessary to navigate volatility.
Our members are already working with customers to forecast tariff exposure, reroute sensitive cargo, and optimise compliance to minimise disruptions.
While we remain deeply concerned about the destabilising impact of frequent and reactive tariff policies, this is also a time for strategic action.
The Airforwarders Association stands ready to support our members and their clients through this period of uncertainty, advocating for stability in Washington while promoting agility and resilience in the global supply chain.
