Drayage Demand Rises as U.S.-China Tariffs Ease

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May 12, 2025

Drayage Demand Rises as U.S.-China Tariffs Ease

News

A major development in U.S.-China trade relations is set to shake up global shipping lanes—and NTG is ready to help you stay ahead of the curve.

On May 12, the U.S. and China announced a 90-day trade agreement that includes a significant reduction in reciprocal tariffs. The original combined tariffs, which reached as high as 145%, are now dropping to 30%. Specifically:

  • U.S. IEEPA tariffs will remain at 20%.
  • Original tariffs fall from 125% to 10%.
  • China will reduce retaliatory tariffs on U.S. goods to 10%.

What Happens Next: Prepare for the Volume Spike

This agreement immediately alters the flow of trade, especially for transpacific shipping. Here’s what to expect:

  • Immediate Cargo Movement from China to the U.S.
    Containers that were stalled at Chinese ports are already en route. The ports of Los Angeles and Long Beach are expected to receive the lion’s share of this surge, creating potential bottlenecks in the coming weeks.
  • Peak Season Pull Forward
    The 90-day pause ends in the middle of the traditional U.S. import peak season, likely causing importers to accelerate shipments to beat the deadline. That urgency could strain carrier availability and storage infrastructure.
  • Port Congestion, especially on the West Coast
    Expect dwell times and chassis shortages to worsen—especially where port infrastructure is already stretched thin.

How NTG Helps You Navigate the Surge

As conditions tighten, flexibility becomes a competitive advantage. Here’s how NTG is positioned to support shippers through this volatile period:

  • Extensive Drayage & OTR Capacity 
    NTG has the reach and relationships to secure capacity even in the most constrained markets.
  • Private Chassis Access
    We maintain private chassis in every major market to help customers avoid costly delays caused by terminal equipment shortages.
  • Nationwide Transload & Warehousing Network
    Our robust warehousing footprint means we can quickly reroute, transload or store freight when congestion hits key ports.

Need to Pivot Quickly? We’re Already in Position.

If your team is anticipating delays, backups or shifting timelines due to this policy change, NTG’s port-to-door capabilities offer the flexibility you need to keep freight moving.

Contact us today.

Nathan Crocker
Vice President, Drayage Operations

Nathan Crocker is the Vice President of Drayage Operations at NTG, overseeing strategy, technology partnerships, and day-to-day operations. He has held leadership roles within NTG, including General Manager and Assistant General Manager of Drayage.

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