This blog post draws on insights shared during a recent conversation featuring experts from the import and drayage industry: Ian Wland, COO of JC Transports, and Jason Strickland, Director of Sales, and Anna Salassi, Logistics Coordinator, from Givens Incorporated. They offered a valuable look into the current state of the market, the impacts of recent tariffs, and what might be coming next.
Meet the Experts
- Ian Wland leads JC Transports, a drayage operator managing 350 trucks in LA and Long Beach. Ian has a background in cold calling unrelated to logistics but notes that strong conversation skills are a significant advantage in the trucking industry. He's been with JCT for 10-11 years. Ian previously appeared on the show to discuss topics like AB5 and W2/contractor issues in California.
- Jason Strickland is Director of Sales at Givens Incorporated. He's been in the maritime port logistics management industry since 2008. Givens operates significantly in the Port of Virginia, with 1.7 million square feet of warehouse space and 100 tractors. They also have operations in Savannah and dedicated customer facilities in Seattle, South Carolina, and Reno. Jason's background is also in sales, including door-to-door sales, which he describes as "cutting his teeth the hard way".
- Anna Salassi is a Logistics Coordinator at Givens, focusing on the day-to-day transactional side of drayage, warehousing, and logistics. She joined Givens about two and a half years ago. Anna noted that she entered the industry during a period of significant change, where things have rarely been "precedented or typical". When she started, sales weren't heavily focused on because demand was high; now, the market has changed significantly.
Givens offers a mix of public and private warehousing, drayage, and final delivery services. JCT focuses on drayage, transload, heavy haul, and hazmat in the LA/Long Beach area.
The conversation kicked off discussing the import surge observed in late Q4 and Q1. This period saw high import volumes that disproportionately affected US GDP compared to exports. A key factor discussed was the "pull forward" of goods in anticipation of or reaction to tariffs, particularly the "Trump tariffs".
Givens, operating as a foreign trade zone and bonded facility, saw an immediate surge in inquiries for bonded space after the tariff announcements. Within three weeks, they had 95 opportunities requesting 300,000 square feet.
The strategy for many customers was to secure bonded space proactively to protect themselves against tariffs, even before the freight arrived. This space is now starting to fill up with arriving freight.
The discussion highlighted the difference between foreign trade zone (FTZ) and bonded space. While FTZ allows co-mingling of domestic and foreign freight, bonded space was found to be the better solution for sheltering from tariffs, but it restricts the area to only bonded freight, meaning non-bonded items cannot be stored there.
Initially, the market experienced a "pause" as companies tried to understand the implications of the changing tariff situation. Plans were changing weekly.
For some businesses, like a toy manufacturer, the tariffs required a complete change in their business model. They had to get educated on duties and tariffs, consulting lawyers and subject matter experts. Manufacturing didn't necessarily stop, but goods were held back at origin while companies adjusted their approach.
On the West Coast, Ian observed the same "pause". He anticipates a "wave" of containers arriving around early June, followed by "COVID-style inbound volume", including extra loaders and vessels, hitting around the third week of June.
JCT experienced its best month ever just two months prior, with volumes up 20% over their historical high, driven by the front-loading activity.
Despite this surge, operations on the West Coast weren't excessively difficult. Ian noted that nothing sat in yards, everything turned, and empty containers were returned on time. Rail experienced some backup but wasn't overly congested. This efficiency led Ian to call it almost a "normal market situation" despite the volume spike. Givens' team also felt things flowed pretty well initially on their side.
Recent developments, such as a pause in Chinese tariffs (potentially encouraging West Coast imports) and an extension of European tariffs (potentially impacting East Coast ports more significantly, especially Virginia which receives 50% of its goods from Europe compared to 20% from China), add to the market's volatility.
The extension of European tariffs is seen as potentially having a bigger impact on the Port of Virginia due to the higher percentage of imports from Europe. Specific commodities like automotive parts and motorcycles from Europe and South America are significant for Givens.
A major challenge highlighted by the Givens team is the pervasive uncertainty. "Every single day it's different and nobody can make a decision" because the consequences of that decision might change rapidly based on tariff updates.
This uncertainty directly impacts operations. For Givens, the difficulty lies in managing warehouse space requests. Many companies inquired about large amounts of space due to tariff concerns but didn't follow through when tariff situations changed ("oh just kidding we don't need it because tariffs are done or there's a pause"). This makes planning space allocation difficult.
Committing space to bonded status also limits flexibility by making it unavailable for other types of freight.
Providers face a balancing act: weighing the potential short-term opportunity against the risk of committing resources to needs that might quickly disappear, a challenge reminiscent of market volatility seen during the pandemic. Companies that invested heavily in temporary volume during the pandemic faced significant difficulties when volumes decreased.
The experts discussed the strain on shipper (BCO) logistics departments, which are often small (1-3 people) and already maxed out. This makes it challenging for them to navigate the complexities of changing tariffs and customs regulations. They heavily rely on their drayage and forwarding partners for information and guidance.
However, drayage and warehouse providers sometimes need to push back and rely on the shippers/forwarders to provide details like origin and HTS codes, as they don't have the full picture of the customer's business or customs requirements.
Providers tend to "stay in their lane". Ian, for example, focuses on drayage, transload, heavy haul, and hazmat in LA/Long Beach and avoids commenting on customs, ocean contracts, LTL, or other modes.
Looking ahead, Ian foresees the upcoming rush in LA/Long Beach lasting about four to five months.
Key Advice: For BCOs, forwarders, or brokers handling import volumes, the recommendation is to "lock someone in now". The current market has low volumes and ample capacity. Relying on current "paper rates" is risky because they reflect today's capacity, not the tighter conditions expected in a month when volumes surge. Rate increases and rejections are likely to occur.
An interesting insight into market conditions comes from driver applications. Ian noted a significant increase (3-4x) in owner-operator applications for W2 driver positions at JCT. This suggests that owner-operators in the market are struggling to find consistent loads elsewhere and are seeking the stability of W2 employment. This trend offers a real-time indicator of the stress level among actual drayage operators.
Overall, the market is characterized by uncertainty and rapid change, driven largely by tariff developments. While some ports saw efficient handling of initial surges, the prospect of new volume waves and operational challenges like port appointments (in Virginia) and navigating inconsistent demand for space remain key concerns. The advice is to plan proactively and be cautious of current market rates that may not hold as volumes increase.
Connect with the Experts:
You can find Anna Salassi, Jason Strickland, and Ian Wland on LinkedIn. You can also learn more about their companies, Givens Incorporated and JC Transports, through their respective LinkedIn pages and websites.
