In the first half of 2025, SC Codeworks’ freight activity data revealed the disruptive impact of tariffs on shipping patterns, marking a period of unpredictability for businesses involved in international trade. As shippers anticipated impending cost increases from tariffs, they adopted new strategies that emphasized consolidation of inventories and a subsequent slowdown in import activities.
SC Codeworks, a leader in warehouse management systems, specializes in providing solutions for third-party logistics (3PL) companies operating warehouses. These 3PLs, an essential component of global supply chains, cater to a diverse array of shippers, giving SC Codeworks extensive insight into market trends. The company’s systems facilitate seamless integration with major enterprise resource planning (ERP) systems, offering flexibility and real-time data solutions crucial in periods of economic transition.
Throughout early 2025, the logistics landscape underwent a substantial shift as tariff threats loomed large. According to SC Codeworks’ data, March witnessed a 32.2% surge in units shipped compared to the previous year, even as the overall order count dropped by over 20%. This paradox of fewer orders yet more shipped units pointed to a clear trend: shippers were opting for fewer, but fuller loads, reflecting a strategic pivot toward consolidation—a move designed to optimize freight costs ahead of tariff implementations.
March and June stood out as particularly active months, characterized by a spike in shipping volumes as importers consolidated their shipments preemptively. A temporary pause announced in early April offered a brief respite, leading to an easing in activities in the subsequent weeks. This back-and-forth underscored the volatility that has come to define the period, with traditional seasonal planning replaced by responsive, ad-hoc strategies driven by the shifting tariff landscape.
The data from SC Codeworks also highlighted a notable 63.7% year-over-year increase in monthly order volatility, showcasing a market grappling with uncertainty and rapid fluctuations in demand. Many importers began holding more inventory to mitigate disruptions, evidenced by a 4% year-over-year increase in average on-hand inventory levels across their facilities.
Navigating this volatile environment, the robust capabilities provided by SC Codeworks’ Warehouse Management System (WMS) became indispensable for 3PL companies. With tools designed to track inventory movement within facilities, manage yard and trailer flows, and accommodate various data transmission methods like EDI and API, their system ensured that businesses could maintain operational efficiency even in unpredictable conditions.
As tariffs continue to roil global supply chains, the SC Codeworks data emphasizes the necessity for dynamic planning tools that can respond in real-time to external shocks. 3PLs equipped with such technologies are likely to maintain a competitive edge, leveraging data-driven insights to adapt to market demands swiftly.
The first half of 2025 has been a testament to the resilience and adaptability required in modern logistics, with SC Codeworks playing a role in supporting businesses through challenging market conditions.
