AUTO LOGISTICS
Automotive shippers are working side-by-side with their logistics and transportation partners to address this volatile landscape. Here are four challenges they’re focused on solving right now. 1. TARIFF AND TRADE UNCERTAINTY “We deal with a lot of OEMs, and if a day went by that we didn’t talk about tariffs, I would be shocked,” says Tracy Urbanski, senior vice president of operations for Penske Logistics. The tariff situation changes constantly and erratically, making it difficult to predict what’s forthcoming. Because many OEMs make decisions with whatever information they have at hand, “there is an element of crystal ball in predicting where things will land,” Urbanski says. “It’s like building a boat while you’re on it.” This challenge extends upstream to OEM suppliers, particularly those providing critical inputs such as minerals, aluminum, and steel. Because these supply chains are so interconnected, even small disruptions can quickly cascade through multiple tiers. For example, in October 2025, U.S. automotive assembly plants were just weeks away from shutdowns because of a computer chip shortage. The Chinese government blocked Nexperia, an important supplier of these chips, from exporting from its facilities in China. “A handful of these chips can literally stop production of a full assembly plant,” Steve Horaney, senior vice president at the Motor and Equipment Manufacturers Association (MEMA), told Bloomberg. “Ultimately, disruptions roll downhill,” Urbanski adds. “A tier 1 supplier might be fine in the event of a chip shortage, but if a tier 2 supplier runs into trouble, the impact goes through the entire network—and those upstream disruptions become very real.” Similarly, disruptions involving aluminum coils and semiconductors have a ripple effect. Recently, Ascent
10% in annual logistics costs, reduced inventory and premium freight through smarter frequency planning, and gained real-time part- and pallet-level visibility across all plants and suppliers. “In addition, the company can now re-route material flows in response to tariff changes or disruptions, simulating bonded or cross-border alternatives in hours instead of weeks,” Parachuri explains. “This represents a fundamental shift from siloed, static planning to digitally enabled lean flow, where optimization and data quality drive resilience and agility.” For other OEMs, supply chain complexity—along with tariff policies and geopolitical concerns—is driving a move toward repositioning supply networks. “The number-one concern we hear is nearshoring and localizing supply chains,” says Joel Eigege, senior vice president, automotive, aerospace, and industrial for Ryder. Many OEMS are now investing heavily in U.S.-based production. “But there is still uncertainty where they will land. That transition will take time,” Eigege says. Automaker Stellantis has committed to $13 billion in investments, Eigege says, “but that is through 2029, so it shows their thinking around timing.” Logistics providers that service automotive manufacturers and suppliers, such as Penske Logistics, must be prepared to help their clients manage frequent supply chain disruptions including shifting tariff policies, regulations, and consumer demand as well as global supply chain complexities.
Global Logistics helped several automotive customers handle this
challenge by moving critical parts and materials that keep production running. “The core of our business is to respond quickly to industry changes and to unexpected issues,” says Daryl Knight, the 3PL’s chief commercial officer. “Getting parts and products where they need to be without delay involves creative solutions, such as reacting quickly and shifting transportation modes, to limit and mitigate production impacts.” 2. SUPPLY CHAIN COMPLEXITY The complexity of the automotive supply chain—the number of suppliers, their locations, the multiple tiers involved—is a significant challenge for OEMs. Agillence offers the example of its client, a global tier 1 manufacturer that supports multiple OEMs with more than 50 plants, 1,200 suppliers, 30,000- plus active part numbers through five crossdocks and 1,500 routes across North America. Agillence worked with the manufacturer to streamline supply chain complexity. “Originally, the company managed its network through plant-centric logistics, resulting in redundant lanes, fragmented visibility, and higher premium freight,” Parachuri says. “Transitioning to a crossdock-based, technology-driven model built on optimization and clean master data has delivered measurable impact.” The switch yielded several benefits for this manufacturer. They saved roughly
122 Inbound Logistics • January 2026
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