Volatility Ahead: Bracing for Tariff Impacts in Yard Operations

As the trade war between the U.S. and China escalates, even as most reciprocal measures affecting other countries have been paused, volatility and disruption in freight markets and global supply chains are on the rise.  We saw a similar movie recently during the COVID pandemic, which caused bottlenecks throughout the world.

This is affecting everything from sourcing and manufacturing to inventory management, freight, logistics, and delivery. For instance, supply chain executives in a CNBC survey said they may look for lower tariff havens rather than reshore to the U.S., citing high costs.  

At the level of yard operations, facilities operators need to be prepared for the effects of supply chain volatility, as tariff shocks cause greater-than-normal (whatever that is anymore) swings in freight demand. Yard automation is one way you can mitigate the downstream impacts of tariff-driven supply chain disruption showing up at the doorstep.

China, US Fully Dug In, Others Look to Negotiate

In a picture that is continually shifting, China and the U.S. continue their bellicose rhetoric, and a detente between the parties appears unlikely at this point. The U.S. has raised import duties for Chinese goods to 145% — with Trump threatening to increase it to 245% — while Beijing has countered with tariffs of 125% on U.S. imports. It’s a high-stakes game of chicken.

Elsewhere, the White House says 70 countries are interested in creating bilateral trade deals to stave off threatened higher tariffs, with China threatening retaliation against partners that “appease” the U.S. In South Korea, customs officials saw a huge uptick in export fraud during Q1, with companies attempting to slap “made in Korea” labels on Chinese goods.

The Italian prime minister visited the White House on April 18, although not as a European Union representative, with Japan and South Korea right behind. The EU is holding off on retaliatory tariffs until July 14 to allow talks to proceed.

Tariffs and Their Ripple Effect on the Supply Chain

Trans-Pacific freight volumes have declined as a direct result of the trade war, even as the Trump administration exempted smartphones and other consumer electronics — including those made in China — from reciprocal tariffs. According to Linerlytica analysts as reported by The Loadstar, container bookings from China to the U.S. were down between 30% and 60% for the week ended April 11, and down 10%-20% from other Asian nations. This falloff is expected to dampen demand out of China through May, leading to more blank sailings.

Freight load board provider DAT found that trucking volumes, which had been surging for three weeks due to swollen imports in advance of tariff imposition, began to slow in mid-April, then picked up again. For week 17 ended April 27, spot load posts were up 12.3% from the prior week, while spot truck posts declined 1.5%, indicating more demand than capacity, pushing up dry van truckload spot rates by 0.5%. Two weeks prior, load posts had only grown by 1.3%. 

Dean Croke, principal analyst with DAT, attributed the “flurry of unseasonal activity” to “tariffs and resulting uncertainty in the truckload market.”

Diversification of sourcing away from China to alternate suppliers in India and Southeast Asia as a tariff mitigation move has been stepping up. Apple, for instance, plans to relocate its production from China to India by 2026.

While many observers believe reshoring production to the U.S. — the long-term intent of the Trump tariffs — is too costly to make economic sense, there are signs it’s happening. For instance, high-end home goods retailer RH plans to produce 48% of its upholstered furniture in the U.S., up from previous levels. Automakers, on the other hand, face a complicated, yearslong process.

In general, increased costs related to tariff effects are pushing companies to find more savings, putting greater pressure on efficiency efforts, including in the yard.

Logistics Bottlenecks and Compliance Challenges

There are already signs of tariff impact on supply chain flow. Logistics giant DHL has suspended shipment of U.S. B2C imports valued over $800, down from the previous $2,500 threshold. Because they’re now subject to tariffs, these goods suddenly require a longer, more rigorous customs clearance process.  

While a glitch in a tariff exemption code has been fixed by CBP, it pointed out the difficulty the agency will face in processing imports under the new tariff schedules. Dewardric McNeal, an analyst at Longview Global, told CNBC that while he doesn’t think tariff imposition will slow down the flow of goods, it will complicate clearance paperwork for importers. 

The back-and-forth from the Trump administration is also causing executives to hold off on major business decisions until there is more clarity. 

Impact on Yard Operations

“What goes up must come down” is an immutable law of nature. On the other side of the swell of import volume ahead of the tariffs is the inevitable falloff in freight traffic, as noted above. 

This can cause issues as yard operations managers deal with wild swings in activity, from being swamped to looking at idle equipment and workers. A greater level of unpredictability leads to challenges in scheduling and yard capacity planning.

How Yard Automation Helps Absorb Tariff-Induced Shocks

Given tariff volatility, companies should be focused on ensuring that yard operations don’t become the weak link in the supply chain when volumes fluctuate. They can do this by investing in yard automation technology that increases efficiency and facilitates a smooth traffic flow. Here are some of the main components:

Self-Service Gate Check-In/Checkout

Gate automation eliminates bottlenecks by creating self-service check-in and checkout, streamlining the processes. Drivers can use their digital device to scan a QR code at a gate kiosk, reducing dwell times and freeing up staff for other tasks. This improves throughput, reduces driver wait time, and minimizes congestion at peak times.

Electronic Documentation

At the gate, drivers can also scan documents such as the BOL, the commercial invoice, packing list, and carrier manifest. Integration with receiving allows managers to verify the load before it reaches the dock. Visual spot checks can still be done as needed for high-value, hazmat, or reefer freight. Gate personnel can do seal inspections at departure to make sure they match documentation. All of this reduces wait times and streamlines communications.

Dock Scheduling Tools

Automated systems instantly update shipment status, reducing back-and-forth communication and improving supply chain visibility. Drivers can quickly check their phones to see if they’ve been assigned a different dock or stop.

Drivers can also precheck their gate assignments, which helps facilitate flow when a particular dock is backed up. They can not only breeze through to their docks but can be notified in advance to come at a later time if there’s a backup. Better appointment visibility and management helps when arrival times become unpredictable.

Real-Time Driver Communication

Automated systems give drivers instant notifications regarding load status, dock assignments, and availability via text alerts. A digital self-service portal lets them update their status, submit documents, and receive route instructions without needing to wait in line. This removes a huge frustration for drivers hamstrung by outdated manual processes and poor communication.

The Benefits of Yard Automation in Disruptive Times

Yard automation delivers a clear advantage in a time of volatility. Self-service gate check-ins and e-documentation empower yard managers to process peak loads while reducing manual errors. Dynamic dock scheduling balances incoming trailers across available doors, preventing bottlenecks during import surges and minimizing idle time when shipments ebb. 

Real-time driver communication and digital portals keep operators and carriers in sync, reducing dwell times by up to 50% without adding headcount. Integration with a TMS and WMS provides end-to-end visibility, so yard capacity can be adjusted based on inbound and outbound activity. This streamlines yard workflows, enabling facilities to flex during volatility and maintain consistent throughput.

In other words, with increasing volatility and costs the new norm, yard automation takes the edge off of the unpredictable peaks and reduces costs for the unpredictable lulls.

With Tariff Troubles Mounting, the Yard Doesn’t Need to be the Choke Point

As tariffs continue to reshape freight flows and sourcing strategies, the yard emerges as a critical supply chain link. Companies that invest in self-service gates, e-documentation, dynamic scheduling, and real-time communication will be best positioned to absorb sudden swings in volume and protect service levels.

FreightRoll, an innovator and leader in yard automation systems, empowers managers to anticipate disruptions, optimize resource allocation, and maintain throughput without impacting labor costs. 

FreightRoll’s digitalGUARD lets drivers access the gate by scanning a QR code, reducing wait times and manpower requirements. They then receive gate and navigation instructions.

FreightRoll’s digitalBOL creates secure chain-of-custody tracking. It helps facilitate the transition to paperless operations while improving compliance and efficiency.

A native browser-based experience, FreightRoll meets the authentication and workflow requirements of an app without requiring a download, enabling passive driver onboarding.

Ready to fortify your yard against tariff shocks? Contact FreightRoll today to learn how our solutions can keep your operations agile, efficient, and resilient.