Tariffs, customs disputes, and fast changing import rules are reshaping how goods move across borders, and that puts Third-Party Logistics and Supply Chain Management providers in the spotlight. With new U.S. proposals on forced labor, legal challenges to Section 122 tariffs, and shifting guidance on duty refunds, some logistics stocks may face fresh hurdles while others may see new demand for their services. This article highlights three stocks from the 3PL and supply chain screener that appear closely exposed to these trade headlines, helping you decide whether they might or might not fit in a portfolio built around global trade risk.

International Distribution Services (LSE:IDS)

Overview: International Distribution Services is the parent company of Royal Mail and GLS, running parcel and letter delivery networks in the UK and across roughly 40 European countries, as well as express delivery, logistics, and property and facilities management services for everyone from consumers to large retailers.

Operations: The company generates about £8.2b from Royal Mail and £5.0b from GLS, with small eliminations between segments.

Market Cap: £3.4b

International Distribution Services puts you right at the heart of cross border parcel flows as tariffs, customs rules and capacity constraints keep shifting, which is exactly where many retailers and importers need reliable partners today. The stock is described as trading well below one DCF estimate of fair value, while analysts expect earnings growth to outpace the wider UK market despite only modest revenue growth forecasts. At the same time, investors need to weigh a recent history of earnings decline, a large £287.0m one off loss and a relatively inexperienced management team that still has to prove it can deliver on efficiency and capital decisions. The balance of potential with execution risk is a key feature of IDS at this point.

International Distribution Services looks like a cross border workhorse with a valuation question mark, and the real tension is whether the recent earnings decline and that £287.0m one off loss are masking a cleaner story in the 3 key rewards and 1 important warning sign

Exchange Income (TSX:EIF)

Overview: Exchange Income Corporation is a Canadian company that owns a mix of aviation and manufacturing businesses, ranging from regional passenger, medevac and freight services to mission systems, aircraft parts and leasing, as well as building exteriors, telecom infrastructure, precision components and industrial cleaning and climate control equipment.

Operations: Exchange Income generates about CA$2.4b in revenue from its Aerospace & Aviation segment and about CA$1.1b from Manufacturing.

Market Cap: CA$7.2b

Exchange Income may appeal to investors who want exposure to essential aviation and industrial services that sit close to freight flows and infrastructure projects tied to trade and regional development. The company combines exclusive northern air service contracts and medevac, defense and cargo exposure with a manufacturing arm that includes access solutions and building systems that are largely CUSMA compliant. This structure may help reduce tariff sensitivity even as U.S. trade rules keep changing. At the same time, a rich P/E, weak coverage of dividends and interest, and reliance on external funding mean investors may be paying a premium for its current earnings profile and buyback activity. An important consideration is whether Exchange Income’s mix of recurring contracts and capital needs supports that premium.

Exchange Income’s premium P/E, core contracts and capital needs point to a story that might not be fully priced in. The real twist sits inside the 3 key rewards and 2 important warning signs (1 is major!)

Landstar System (LSTR)

Overview: Landstar System is a transportation management and freight brokerage company that arranges truckload, less than truckload, intermodal, air, ocean and specialized shipments, while also offering customs brokerage and risk management services for shippers across the U.S., Canada, Mexico and other markets.

Operations: Landstar System generates about US$4.7b from Transportation Logistics and about US$129.3m from Insurance, offset by US$57.4m of internal revenue eliminations.

Market Cap: US$7.1b

Landstar System provides direct exposure to North American cross border freight at a time when proposed U.S. tariffs, new forced labor rules and more frequent customs changes are reshaping trade flows. Management has highlighted that U.S. Mexico and U.S. Canada lanes already contribute 15% of revenue with only minimal exposure to China. The company combines an asset light model and strong safety focus with solid recent quarterly results and a regular dividend. Investors still need to weigh its high P/E, a multi year decline in earnings and return on invested capital, and recent insider selling. A key consideration is whether the freight pull forward, tariff volatility and tighter carrier qualification rules are creating a temporary boost or a more durable competitive position for Landstar.

Landstar System’s asset light freight engine, cross border reach and safety focus look like only part of the story. The real question sits inside the 2 key rewards and 1 important warning sign

The three logistics stocks covered here are only the starting point. The full Third-Party Logistics and Supply Chain Management Providers screener surfaces 12 more companies that appear to have equally compelling stories tied to trade flows and customs pressures in global markets through the Third-Party Logistics (3PL) and Supply Chain Management Providers screener. Use Simply Wall St to identify, analyze, and filter for the specific catalysts, risk flags, and narratives highlighted in this article so you can focus on the highest conviction opportunities within this corner of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.