🔹 Logistics at a Crossroads — Vol. 3 Interest Rates, Uncertainty & the Freight Fallout

 I feel like this really is going to be an ongoing conversation over this next year. I know in earlier posts- I explored the critical relationship between tariffs, rapid rail, and port connectivity. With shifting trade policies reshaping supply chains, inland transportation networks must evolve as fast as global trade itself. But another factor is now adding pressure: the Federal Reserve’s approach to interest rates.

📉 The Fed, Rates, and Supply Chains
The Fed’s latest projections signal at least two rate cuts this year, but not yet. Inflation remains above target, consumer expectations for higher prices are rising, and recession fears are growing. For businesses navigating supply chain costs, this uncertainty complicates capital investment, expansion plans, and logistics strategies.

🚛 The Ripple Effect on Freight & Rail
Just as tariffs shift trade routes, interest rate policy influences infrastructure investment. Higher borrowing costs slow down major transportation projects, while potential cuts could unlock expansion in key trade corridors. Ports, intermodal hubs, and rail networks need to be agile in responding to both economic policy and trade shifts.

💡 Adapting to the Unknown
For supply chain leaders, the takeaway is clear: flexibility is everything. As we prepare for potential rate cuts and continued trade realignment, companies should:
✅ Strengthen intermodal efficiency to offset higher costs.
✅ Leverage AI-driven forecasting to anticipate shifts.
✅ Invest in scalable infrastructure while balancing economic uncertainty.
📊 The Road Ahead

Rail and intermodal networks aren’t just reacting to market changes—they’re shaping them. Whether rates hold steady or drop, businesses that integrate logistics agility with smart investment strategies will be best positioned for long-term success.

How is your organization preparing for these dual pressures—trade policy shifts and Fed rate decisions? Let’s discuss.