U.S. & China Strike 90-Day Tariff Deal
The U.S. and China came to an agreement on tariffs Monday after a weekend of trade negotiations by officials from the two countries. Both countries agreed to drastically roll back tariffs on goods for a 90-day period beginning May 14.
While President Trump’s 20% fentanyl-related levies will stay, each side has agreed to lower the reciprocal tariffs by 115% – meaning the U.S. will lower tariffs on Chinese goods to 30% and China will cut levies on American imports to 10%.
For more information on the trade agreement, read more here.
End of De Minimis: Air Cargo Decline?
As of May 2, shipments from China and Hong Kong are exempt from de minimis – causing any cargo valued at $800 or less subject to the U.S.’ 54% tariff rate for imports. E-commerce accounts for half of shipments from China to the U.S. and 6% of global volume.
The announcement of tariffs spurred a rush of air cargo shipments from various countries in Asia to the U.S. last month. However, e-commerce volumes are expected to decline in the long term due to economic uncertainty, and in turn, will cause capacity shifts in air cargo.
For more information on de minimis, read more here.
JFK Airport’s New $270M Cargo Center to Lower Truck Congestion
The Port Authority of New York and New Jersey, along with Realterm and Worldwide Flight Services (WFS) established a $270 million cargo center at JFK Airport April 23 – the first new cargo center at the airport in 25 years.
The 350,000 square-foot facility includes a dedicated cooler space and an advanced truck dock management system. It consolidates operations from four separate cargo zones into one location, aiming to lower truck congestion and improve overall operational efficiency.
For more information on JFK’s new cargo facility, read more here.
The U.S. and U.K. Reach a Deal on Tariffs
The U.S. and the U.K. came to a trade deal on May 8 – the first agreement from the Trump administration since he implemented global reciprocal tariffs last month. The U.S. will maintain a 10% tariff on U.K. imports, and the U.K. will lower tariffs on U.S. goods to a 1.8% rate.
The two countries also agreed to match steel and aluminum tariffs and quotas. Additionally, the country agreed to open access to the U.K. market for U.S. exports of agricultural products.
For more information on the U.S.-U.K. trade agreement, read more here.
How the Trucking Industry is Preparing for New CDL Rules
President Trump put an Emergency Order on English proficiency for truck drivers, which also includes a review of commercial driver’s licenses issued to foreign drivers working in the U.S. Additionally, the Commercial Safety Alliance reinstated an out-of-service (OOS) mandate, which becomes effective June 25.
Experts in the industry recommend companies to review their hiring and training practices for drivers employed on H-2B or EB-3 visas, as well as to invest in language training to retain drivers to ensure compliance.
For additional information on the new CDL rules, read more here.
How FreightCenter Supports Businesses During Economic Uncertainty
At FreightCenter, we understand that financial instability doesn’t stop the need for goods to move. That’s why we offer services and tools to help businesses stay agile and control logistics costs even in volatile markets:
Scalable Freight Solutions: Quickly adapt to volume fluctuations with flexible service options.
Rate Comparisons in Real Time: Secure the most cost-effective rates from our carrier network to protect your bottom line.
Strategic Shipment Planning: Optimize routes and timing to avoid unnecessary expenses or disruptions.
Our team is here to support you through the uncertainty, with logistics solutions built for resilience:
What’s Next For the Freight Industry?
The new trade deals with both China and the U.K. is expected to effect the global shipping and transportation markets. Freight rates will sharply rise in the next couple of weeks as importers use the 90-day window. Increases in freight rates will begin with ocean freight rates, followed by domestic trucking rates in July and August.
However, the abrupt shift in policy will likely create logistical challenges. Companies might struggle to access truck or intermodal capacity in the U.S. or containers in China.
While stock is rising and relieving the global economy, it’s important for businesses to stay vigilant. With an influx of new orders paired with unshipped orders from prior weeks, logistics networks will likely face additional challenges when it comes to capacity. The market is still in a state of volatility, so it’s important for businesses to prepare for potential future disruptions by shipping their cargo as early as possible.
