Supply chain disruptions from tariffs and uncertain trade policies are among the most serious challenges facing shippers and logistics providers. It is forcing retailers, manufacturers, and others to reconsider strategies around sourcing, production, and distribution, according to the 2026 Third-Party Logistics Study, released on Oct. 7.
“Tariffs are having a huge impact on 3PLs, not from a cost perspective but from a supply chain architecture and responsiveness perspective,” said Mark Baxa, president of the Council of Supply Chain Management Professionals (CSCMP).
The annual survey found that in the near term, 41% of 3PLs do not have plans to implement short-term tariff strategies, while an equal percentage plan to source domestically.
Meanwhile, shippers are looking at alternative approaches to sourcing (45%), identifying new foreign suppliers (40%), and modeling tariff risks (40%). Less than one-third of shippers plan to increase their inventory levels due to tariffs.
“With higher inventory carrying costs, many shippers are shifting back to a just-in-time model,” said Baxa.
Looking ahead, the most cited long-term tariff strategies for both shippers and 3PLs were reevaluating product portfolios and reestablishing manufacturing bases. However, 30% of shippers and 29% of 3PLs indicate no plans to adopt long-term tariff strategies, which the report suggested could leave them more vulnerable to extended trade disputes.
Business confidence remains high
Despite the business uncertainty, only a handful of survey respondents reported a lack of confidence in navigating the current environment.
The report attributed that optimism, in part, to lessons learned during the Covid-19 pandemic. It led more companies to begin shifting production to Southeast Asia, Mexico, or back to the United States.
Data showing Mexico replacing China as the No. 1 trading partner with the United States over the past two years is evidence of this trend.
The report also cautioned that moving production and reconfiguring infrastructure takes time, and countries outside China may lack the same skilled labor or logistical efficiency, potentially making these transitions more challenging.
Use of AI, machine learning continues to grow
The report also documented the continued growth in artificial intelligence (AI) and machine learning across the supply chain. A total of 67% of shippers and 73% of 3PLs said they are utilizing some type of AI and machine learning technologies, including:
- Predictive demand forecasting: Using AI to detect patterns and optimize inventory management.
- Customization and flexibility: Utilizing machine learning to help create specialized solutions for different industries, such as healthcare.
- Cost optimization: Automating mundane tasks can improve accuracy and reduce operational costs.
- Predictive analytics: Advanced AI can detect patterns and predict potential disruptions, enabling proactive route optimization and inventory positioning before issues occur.
“AI isn’t just about quickly identifying and fixing issues — it’s about anticipating them. By learning patterns over time and enabling rapid, real-time pivots, AI transforms intraday operations, driving greater efficiency and directly reducing labor costs,” said Ann Marie Jonkman, vice-president of global industry strategies at Blue Yonder.
A widening supply chain talent gap
Besides tariff uncertainty, another growing challenge highlighted in this year’s report was the widening gap between the demand for skilled professionals and the available workforce.
A majority of shippers reported that labor shortages had impacted their service agreements. At the same time, the pace of retirements among long-time supply chain professionals is accelerating.
Baxa, the CSCMP president, emphasized the increasing need for companies to invest in internal employment development. He noted while many firms budget for continuous training, data shows less than 5% of them utilize even 80% of that budget.
“The disconnect becomes evident during periods of disruption, when companies realize they lack the internal expertise to adapt quickly,” the report said.
Logistics study celebrates 30 years since creation
This year marks the 30th anniversary of the Annual Third-Party Logistics Study that Dr. C. John Langley, a supply chain professor at Penn State University, launched in 1996. Today, the study is conducted in conjunction with NTT Data Services and Penske Logistics.
The study found that 81% of shippers believe 3PLs contribute to improving service, and 88% said their 3PL relationships are generally successful.
“Overall, this year’s study results confirm the progress being made by shippers and their 3PLs in spite of new challenges and disruptions that have arisen,” said Langley.
