Shippers 2025 Annual Review & Outlook
Executive Commentary
potential port labor strike , the threat of significant new import tariffs and potentially codifying existing tariffs to pay for an expiring tax bill . These challenges could have a significant impact on the US economy and increase inflation again .
Most immediate is the ongoing port labor negotiations between the International Longshoremen ’ s Association and US Maritime Alliance . With the contract extension set to expire on Jan . 15 , there are concerns that the parties will not reach an agreement , leading to another strike — potentially longer than October ’ s . The parties must agree upon a contract that allows for US port modernization to improve global competition .
Retailers are also preparing for potential significant tariff increases as a new universal and China-specific tariff are being contemplated . These tariffs will raise costs for retailers and others that rely on the global supply chain for finished products and intermediate goods and will lead to significant price increases for consumers . Congress is also considering legislation that could revoke China ’ s Permanent Normal Trade Relations status , again leading to higher tariffs on consumer goods . Tariffs are an important tool , but they
must be used in a strategic manner , not broadly based .
We also have the expiration of the Tax Cut and Jobs Act in 2025 . Retailers benefited from the lower tax rate and will pursue quick reauthorization . However , there are efforts by some who want to codify existing tariffs to pay for the package . Again , tariffs will drive inflation and price increases and will result in job losses .
Despite these issues , retailers are doing everything they can to ensure consumers have access to high-value products at affordable prices . We need elected officials to focus on policies that are strategic and will support hard-working American families , not policies that will drive inflation and price increases again .
Thermo King
Claudio Zanframundo
President , EMEA Truck , Trailer & Bus and Global Marine , Rail & Air www . thermoking . com
The supply chain in 2025 will demand both resilience and innovation . With geopolitical uncertainties likely to persist , we are proactively mitigating the risks through dual sourcing and by maintaining buffer inventories . These measures ensure we can consistently manufacture and deliver refrigeration and HVAC equipment aligned with our customers ’ demands , despite external disruptions .
Longer transit times due to rerouted shipping lanes have underscored the importance of strategic adjustments to the supply chain . We ’ ve increased raw material and component inventories and , where feasible , are sourcing closer to the point of use . Sustainability remains a priority , so while we are supporting global customers , sea freight remains our preferred shipping method . As trade lane constraints impact lead times , effective planning has been instrumental in maintaining operational efficiency under these conditions .
Sustainability extends beyond logistics to encompass our entire product lifecycle . For years , cradle-to-grave impact assessments have been integral to our New Product Development program . Every design undergoes rigorous reviews for material selection , durability and recyclability . As a brand of Trane Technologies , Thermo King ’ s annual ESG reporting reflects commitment to environmental responsibility and transparency in Scope 3 emissions reductions .
Our approach reflects our broader commitment : enabling a resilient , sustainable cold chain that meets the evolving needs of global customers .
Cold chain integrity is a priority , especially as perishables increasingly move across global trade lanes — rising 2 % to 3 % annually due to growing demand for proteins , meat , fruit and vegetables . As the demand is increasing , we are responding to customer needs to have sustainable solutions to reduce emissions . Enhancing efficiencies across shipping lines , intermodal and stationary applications reduce food loss and carbon emissions .
By aligning strategy with adaptability and sustainability , Thermo King is well-positioned to thrive in the dynamic supply chain environment of the future .
“ Longer transit times due to rerouted shipping lanes have underscored the importance of strategic adjustments to the supply chain .”
Claudio Zanframundo
“ We set out every year to reward those carriers that supported us in previous years versus launching multiple pricing bids and moving cargo to providers in a transactional manner .”
Brian Dodge
Retail Industry Leaders Association
Brian Dodge
President www . rila . org
The past year has continued to prove that there is no “ new normal ” in retail supply chains , as the landscape is continually changing — and retailers are evolving their operations to meet what ’ s next .
With a second Trump administration on the horizon , retailers are planning around significant uncertainty in global trade . While leading retailers assess their sourcing footprints on an ongoing basis , upcoming seismic changes to tariffs and trade relationships could have a tremendous impact on the economy and consumer purchasing power . Geopolitics continue to influence supply chain decisions , including uncertainty in the Red Sea , South China Sea and elsewhere .
Cargo theft continues to climb precipitously , with two-thirds of large retailers reporting an increase in cargo theft incidents in the past year . Lawmakers and the Department of Transportation have begun to address the malignant issue with new regulations and proposed legislation , but the next Congress will need to take up the
16 Journal of Commerce | January 6 , 2025 www . joc . com