The Biggest Supply Chain Shifts of the Week that Shippers Can’t Ignore

The logistics landscape is shifting rapidly, and staying ahead of industry changes is no longer optional—it’s essential. From new tariffs and evolving freight classifications to rising operational costs and market volatility, shippers are facing challenges that could significantly impact their bottom line.

This week, major developments in trade policy and transportation regulations are reshaping how businesses manage their supply chains. Understanding these changes now will help shippers prepare, adapt, and stay competitive in an increasingly complex market.

In this article, we’re breaking down eight key updates that will affect costs, efficiency, and long-term logistics strategies—and why they should be on every shipper’s radar.

1. NMFTA's Upcoming LTL Classification Changes: The National Motor Freight Traffic Association (NMFTA) plans to implement new freight classifications for less-than-truckload (LTL) shipments this summer. These changes could increase costs for shippers who don't proactively collaborate with carriers to adjust to the updated classifications.  

Why It Matters: Proactive engagement with carriers and understanding the new classifications can help shippers mitigate potential cost increases and ensure a seamless transition.

2. UPS Faces Investor Pressure Amid Strategic Shifts: UPS CEO Carol Tomé is facing significant pressure from investors, particularly company retirees, due to a 40% decline in the company's stock over the past three years. This dissatisfaction intensified after UPS announced plans to reduce its business with Amazon, its largest customer, aiming to focus on more profitable segments like healthcare logistics and business-to-business deliveries. Retirees, who hold 63% of the voting power through Class A supervoting shares, have seen their wealth diminish and are voicing concerns over these strategic decisions. Despite recent layoffs affecting thousands of employees, Tomé maintains that this strategic pivot will ultimately benefit UPS by improving profit margins and reducing dependency on Amazon.

Why It Matters: Shippers partnering with UPS should monitor these strategic changes, as they may influence service offerings, pricing structures, and the company's overall stability.

3. UPS Modifies SurePost Service: In January 2025, UPS implemented significant changes to its SurePost service, which previously relied on the U.S. Postal Service (USPS) for final-mile deliveries. The company now handles all SurePost deliveries internally, citing concerns over potential service deterioration and rising costs associated with USPS. Concurrently, UPS increased SurePost rates by an average of 9.9% and adjusted delivery area surcharges. These developments have prompted shippers to explore alternative delivery options, though contractual obligations may complicate such transitions. UPS acknowledges the possibility of customer attrition due to these changes but emphasizes the anticipated benefits of enhanced service quality and operational control.

Why It Matters: Shippers using UPS SurePost should assess the impact of these changes on their delivery operations and consider alternative solutions if necessary to maintain cost-effectiveness and service quality.

4. USPS Adjusts Partnerships with Package Consolidators: Postmaster General Louis DeJoy has implemented significant changes to the U.S. Postal Service's (USPS) partnerships with package consolidators, such as DHL eCommerce and OSM Worldwide, to enhance operational efficiency and competitiveness. These changes include eliminating ounce-based rates for Parcel Select packages and discontinuing discounted rates for deliveries dropped off at USPS delivery units, encouraging consolidators to inject packages earlier in the USPS network. DeJoy believes these adjustments will better utilize USPS's transportation network and improve cost coverage.  

Why It Matters: Shippers utilizing USPS services through consolidators should review these changes to understand their impact on shipping costs and delivery times and adjust their logistics strategies accordingly.

5. New Tariffs Imposed on Canada, Mexico, and China: On February 1, 2025, President Trump signed executive orders imposing tariffs: 25% on goods from Mexico, 25% on Canada (10% on energy), and 10% on China, effective February 4. The administration cited fentanyl concerns. In response, Canada announced 25% retaliatory tariffs on $155 billion in U.S. goods, starting with $30 billion on February 4, with more to follow. These tariffs impact industries like food, beverages, apparel, and manufacturing. Businesses are reassessing supply chains to mitigate effects. The move escalates trade tensions, prompting uncertainty in global markets.

Why It Matters: Shippers should assess their supply chain operations to identify areas affected by these tariffs and explore alternative sourcing or market strategies to mitigate potential cost increases.

6. Shifts in U.S. Import Patterns: Over the past few years, U.S. import patterns have experienced significant shifts between the West and East Coasts due to various supply chain disruptions. Initially, importers redirected cargo to East Coast ports to avoid congestion and labor slowdowns on the West Coast. However, recent labor disputes and capacity issues have caused some importers to revert to West Coast ports.  

Why It Matters: Understanding these shifting import patterns can help shippers make informed decisions about port selection and transportation routes, potentially reducing transit times and costs.

7. Fed Holds Rates Steady, Sees Inflation as ‘Elevated’: The Federal Reserve has decided to keep interest rates unchanged after three rate cuts last year. Inflation remains elevated, and the job market remains strong with a 4.1% unemployment rate. While no immediate rate hikes are expected, the Fed is monitoring economic policies, including tariffs, immigration, and tax reforms, which could influence future rate decisions.

Why It Matters: Interest rate stability is crucial for shippers managing capital investments, financing for fleet expansions, and operational costs. A steady rate environment provides predictability, but shippers should remain prepared for potential mid-year adjustments.

8. How California Wildfires Are Affecting Supply Chains: Recent Southern California wildfires have had limited immediate impact on logistics, as major warehouses are located outside affected areas. However, businesses are experiencing challenges such as:

• Operational disruption due to power outages.

• Infrastructure strain delaying deliveries.

• Increased demand for building materials and short-term storage.

Why It Matters: Shippers should anticipate potential delays, material shortages, and changes in consumer demand. Businesses with West Coast operations should assess contingency plans and alternative transportation routes to minimize disruptions. Conclusion: How Shippers Can Stay Ahead With ongoing tariff changes, carrier rate adjustments, and shifts in logistics operations, 2025 is shaping up to be a year of significant transformation for supply chains. Staying informed about these developments is key to maintaining cost efficiency, service reliability, and operational flexibility. At Intelligent Audit, we help shippers navigate these challenges by providing data-driven insights, cost optimization strategies, and visibility into key logistics metrics. Understanding the impact of tariff shifts, carrier pricing, and industry trends—and strategically adapting to mitigate risks—can give your supply chain a competitive edge. Want to ensure your shipping strategy is optimized for 2025? Connect with Intelligent Audit to leverage freight auditing, analytics and optimization tools for smarter strategic decisions for your business.