Topic: Parcel Express

The August LMI reading, at 59.3, eked out a 0.1% gain over July’s 59.2.

UPS has announced its 2025 peak demand surcharges, adding new costs for businesses shipping during the holiday rush. The surcharges will take effect September 28 and run through January 17, covering the busiest stretch of the year for e-commerce and retail deliveries.

It is hard to find a period in time in which supply chains have seen so much volatility and uncertainty, in various ways as over the last five years. That is nothing new, to be sure, but, at the same time, it does speak to the significance of the industry (whether you may be a shipper, carrier, 3PL, academic, analyst, lobbyist, or anything else along those lines).

Late last week, the U.S. Court of Appeals for the Federal Circuit issued a ruling, by a 7-4 margin, in which it stated the majority of the IEEPA (International Emergency Economic Powers Act) tariffs rolled out by the White House are illegal. Tariffs will remain temporarily in place until October 14, which will give the White House time to appeal its case to the Supreme Court.

Effective today, August 29, the de minimis exemption, which allows shipments under $800 sent to the United States to not be subject to tariffs, officially will be removed. That was the edict delivered in a White House executive order in late July.

Entitled “Eye on the Last Mile,” the report is based on feedback from more than 200 United States-based supply chain and logistics leaders.

Following a late July announcement in which the United States and the 27-nation bloc comprising the European Union, which collectively represents the largest trading partner for the U.S., announced they had come to terms on the framework of a large global trade deal, the parties said earlier today that they have agreed to additional details but are not yet at the finish line.

USPS said that the objective of temporary price adjustment, “is to help cover extra handling costs to ensure a successful peak season.”

Following a 90-day pause rolled out in May, which was set to expire today, the White House said yesterday, in an Executive Order, that tariffs on United States-bound imports from China will remain at current levels for another 90 days, through November 10.

Third quarter fiscal year 2025 earnings issued this week by the United States Postal Service (USPS) saw a steeper net loss, at $3.1 billion, than the $2.5 billion reported a year ago, for the quarter.

As of August 7, the U.S. has put new tariffs in place on goods from dozens of countries. The updated rates vary widely, with some close trade partners seeing 10 percent tariffs and others facing rates above 40 percent.

A common refrain among industry stakeholders has been that they know tariffs are coming, or have already arrived, but they badly want, and need, some clarity and stability on tariff rates in order to effectively take action, as it relates to a whole host of things, including: operations; sourcing and procurement; inventory management; capital expenditures; and hiring and staffing, among many others.

Following a late July development, in which the framework of a large trade deal between the United States and the 27-nation bloc comprising the European Union, which collectively represents the largest trading partner for the U.S., was finalized, various reports published earlier this week stated that the EU is pausing is planned tariffs on U.S. goods, originally set for August 7, for six months, providing more time for both sides to come to terms on a broader agreement.

The July Services PMI, at 50.1 (a reading of 50 or higher signals growth), fell 0.7% off of June’s 50.8 reading, growing, at a slower rate, for the second consecutive month.

While some previous implementation dates for the White House’s reciprocal tariffs placed on goods imported into the United States had seen those dates pushed back, or paused, that was not the case this time around.

Following an executive order issued in May, which ended the de minimis exemption—allowing shipments under $800 sent from China and Hong Kong to the U.S. to not be subject to tariffs, the White House this week issued a new executive order suspended the de minimis exemption for various imported goods.

The overall outlook remains fluid, in terms of the pace and also significance of trade deals being made up to the August 1 deadline. John Lash, group VP of product strategy for connected supply chain platform services provider e2open, provided LM with his analysis of what shippers may be in store for when the new tariffs formally take effect.

Quarterly consolidated revenue, at $21.2 billion, fell 2.7% annually, and basic earnings per share, at $1.55 (short of Wall Street estimates of $1.57), fell $0.24, or 13.4%, annually. Total operating profit, at $1.8 billion, decreased 6.3% annually. 

With only a few days left until the end of the reciprocal tariff pause between the United States and its trading partners, the framework of a large trade deal was brokered yesterday between the U.S. and the 27-nation bloc comprising the European Union, which collectively represents the largest trading partner for the U.S.

Logistics leaders are under pressure to do more with less, and rising surcharges, fees, and delivery costs aren’t helping.