As we step into 2025, the transportation industry is gearing up for what could be another turbulent year, full of volatility and disruptions. If January is any indication of what’s to come, we’re in for a roller-coaster ride!

Read also: Supplier Diversification, AI Readiness, and Circularity Top Supply Chain Priorities for 2025 

ILA-USMX labor negotiations

Let’s begin with the issue that’s top of mind for many in the shipping sector: the potential port strike on the East and Gulf Coasts of the U.S. Set for January 15th, a looming ILA & USMX labor dispute threatens to disrupt operations at ports spanning from Boston to Houston. As of now, little progress has been made toward an agreement, and the possibility of a full-scale strike as early as January 16th is becoming increasingly likely. 

The impact will not be limited to these regions alone; ports on the U.S. West Coast and in Canada will also feel the ripple effects as container traffic is rerouted. This may involve more than just changing ports; it could lead to shifts in transport modes as businesses scramble to keep products on shelves and assembly lines moving. Expect air freight demand to surge as ocean freight orders are diverted to faster options. Even with extended lead times, air freight could remain the most viable option for some shippers’ supply chains.

Lunar New Year

Adding another layer of complexity is the seasonal surge in demand from Asia in preparation for the Lunar New Year (LNY) holiday. In 2025, LNY falls on January 29th, and businesses around the world are already ramping up demand from Asia in anticipation. Traditionally observed for 8 days, the holiday leads to a significant slowdown in production across many Asian countries as workers return home to celebrate. As a result, U.S. importers are already ramping up orders—some as early as December—to ensure product availability ahead of the holiday.

Potential U.S. tariffs

Moreover, the political landscape in the U.S. is poised for change, with the new administration set to take office on January 20th. President-elect Donald J. Trump has already made waves by commenting on the potential port strikes and the possibility of tariff increases on imports from major trading nations. This has sent ripples of concern through the importing community, with many businesses fearing the impact of higher tariffs on their bottom line. In response, some importers are looking to source from countries with lower tariff rates, but for many, this isn’t a simple switch. For others, the most viable option is to stockpile inventory before new tariffs come into effect.

Tackling supply chain challenges

One common thread throughout these challenges is the urgency to get products to the U.S. quickly—and with good reason. While ocean freight remains the most cost-effective way to move goods across the globe due to economies of scale, it is not always the best option when time is critical. If a company’s assembly line is at risk of stalling or if being first to market is a competitive advantage, the agility and speed of air freight might be the best solution.

At ASF, we understand that flexibility is key. Our mission is to provide contingency shipping solutions that give our clients peace of mind without breaking the bank. Whether you call it supply chain solutions or mode optimization, we call it the Human Standard in Global Logistics. As the year unfolds, the importance of having a reliable, responsive logistics partner will be more crucial than ever.