Trucker Financial Health Concerns Rise as West Coast Drayage Providers Cease Operations Amid Tariff Negotiations
The ITS Logistics August Port Rail Ramp Index highlights escalating trucker financial instability and supply chain disruptions caused by ongoing tariff negotiations, with major West Coast drayage providers closing operations after decades of service.
The ITS Logistics August Port Rail Ramp Index reveals significant concerns regarding trucker financial health across the industry, exacerbated by the closure of major West Coast drayage providers. Paul Brashier, Vice President of Global Supply Chain for ITS Logistics, noted that while export volumes remain challenged due to ongoing tariff negotiations, inbound volumes to the U.S. West Coast remain strong as retailers prepare for the fourth quarter with front-loaded goods and peak shipments.
Brashier emphasized that industry professionals should anticipate surges in export volumes following agreements between the U.S. and other countries, which would increase freight costs, particularly in the spot market. Terminal congestion and challenges with empty container availability are also being reported, adding strain to operations. The FreightWaves report from May 2025 highlighted that the U.S.-China agreement to roll back tariffs and implement a 90-day negotiation pause was expected to cause immediate effects on global shipping, including capacity and rate escalations.
New tariffs continue to pressure international trade, with the National Retail Federation’s (NRF) Global Port Tracker report forecasting a 5.6% decline in import cargo volume at major U.S. container ports by the end of 2025 compared to 2024. This decline underscores the impact of current trade policies and tariffs on the supply chain, leading to increased consumer prices and potential goods shortages, particularly affecting small businesses. In July, retail sales excluding automobiles and gasoline rose 1.45% month over month and 5.89% year over year, as consumers increased spending in anticipation of future price hikes.
The Port of Los Angeles handled 892,340 Twenty-Foot Equivalent Units (TEUs) in June 2025, an 8% increase from the previous year, marking its busiest June in 117 years. Loaded imports rose 10% to 470,459 TEUs, while loaded exports improved 3% to 126,144 TEUs. Empty container processing also increased by 7%. Brashier projected that volumes would subside by September, except for infrastructure and project freight, which should increase through 2025 into 2026 due to a newly passed congressional bill.
Attention to trucking partners' financial health is critical, as evidenced by the recent closures of T.G.S. Logistics and GSC Logistics, both of which served shippers for nearly four decades. These closures, attributed to market conditions, impact supply chain communities nationwide, especially at the Port of Oakland. ITS Logistics provides comprehensive network transportation and distribution services, including drayage and intermodal operations across 22 coastal ports and 30 rail ramps. The ITS Logistics US Port/Rail Ramp Freight Index offers forecasts for port container and dray operations in Pacific, Atlantic, and Gulf regions, as well as ocean and domestic container rail ramp operations in West Inland and East Inland regions.