JTR Logistics Weekly Transportation & Supply Chain Insights

📅 Week Ending April 6, 2025

Curtesy of Cogent Otter

1️⃣ Freight Market Trends: Potential Auto Tariffs Threaten Supply Chain Stability

The potential imposition of 25% tariffs on imported vehicles by President Donald Trump poses significant economic risks, likely leading to increased auto prices and inflation. Experts warn that these tariffs could hike car prices by $10,000 to $20,000, further straining consumers already grappling with rising auto loan delinquencies. Additionally, these tariffs could push core inflation higher, complicating Federal Reserve monetary policies and delaying potential rate cuts. ​

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2️⃣ Supply Chain Disruptions: Airbus Enhances Management of Supply Chain Disruptions

Airbus is improving its management of supply chain disruptions that have been delaying aircraft deliveries, despite ongoing issues mainly with engines. The company has significantly improved its anticipation and handling of these challenges, especially after experiences during the pandemic. Airbus delivered 766 jets last year, facing similar supply chain issues that trouble its rival Boeing. ​

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3️⃣ Warehouse Automation: Aurora Prepares for Driverless Truck Operations in Texas

Aurora, a developer of self-driving vehicles, is finalizing preparations to launch fully driverless trucks on Texas highways without a safety driver present. The company's recently released Driverless Safety Report details their safety engineering, cybersecurity, and risk management measures. Aurora plans to implement robust fault management and security measures to handle potential issues and threats. The self-driving system is designed to detect adverse weather conditions and respond accordingly. Partnering with companies like FedEx, Uber Freight, Hirshbach, and Schneider, Aurora aims to begin full driverless operations on the Dallas to Houston route in April, initially monitored by safety drivers. 

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4️⃣ Sustainability: Large Organizations Prioritize Reindustrialization Investments

Large European and US organizations are prioritizing reindustrialization investments over short-term profitability. To mitigate concerns over supply chain pressures, rising tariffs, and trade disputes, cumulative investments within and outside of domestic markets are projected to reach $4.7 trillion over the next three years, up from $3.4 trillion in 2024. More than half have invested in nearshoring or reshoring their manufacturing over the past year, with 35% planning to increase investments in nearshoring in 2025 to diversify their manufacturing. Friendshoring, in terms of sourcing and production, is poised to become a key route forward for nearly three-quarters of organizations. 

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5️⃣ Tech Spotlight: GSA Awards $920M BPA for Supply Chain Risk Illumination Tools

The General Services Administration has awarded nine companies positions on a potential 10-year, $920 million blanket purchase agreement to acquire supply chain risk illumination tools and analytic support services. ​

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6️⃣ LTL Market Update: Bridge Replacement on M-66 May Affect Freight Routes

The Michigan Department of Transportation (MDOT) has commenced the replacement of the bridge over Tom and Doc Creek on M-66, just south of the Muskegon River, starting March 31. The project involves lane closures, followed by a complete closure of M-66 starting April 14, with traffic detoured onto U.S. 10 and M-115 during the closure. This phase is expected to conclude by November 2025, with additional improvements scheduled for 2026. The objective of this construction is to enhance safety, provide a smoother ride quality, and extend the bridge's service life. ​

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Please note that the information provided is based on the latest available data and industry trends.