Topic: Air Freight

The company explained that this investment comprises its major divisions—DHL Express, DHL Global Forwarding, DHL Supply Chain, and DHL eCommerce, in various ways, including enhancing infrastructure, expanding networks and capacity, and elevating service capabilities.

The report, entitled “Working through the Uncertainty—Latest Third-Party Logistics Market Results and Outlook,” said that U.S. 3PL Market net revenues, which Armstrong defines as gross revenues less purchased transportation, increased 1.8%, to $131.5 billion in 2024, coming off of a 12.8% annual decline, to $129 billion, in 2023.

The Economic Outlook issued earlier this month by the Organization for Economic Cooperation and Development (OECD) stated that “global economic prospects are weakening with substantial barriers to trade, tighter financial conditions, diminishing confidence, and heightened policy uncertainty projected to have adverse impacts with growth.

The U.S. will levy a cumulative 55% tariffs on Chinese goods, comprised of 25% on the majority of products announced by the White House during Trump’s first term in office, as well the 20% tariffs related to stopping the flow of fentanyl into the U.S. and the 10% universal tariffs, and China would apply a 10% tariff on U.S. goods;

This ruling allows the tariffs to remain intact amid the ongoing appeals process.

What will be the final outcome on industrial transportation from the White House’s ever-changing position on freight tariffs? And how does your company make decisions with so much uncertainty about tariffs?

The May LMI reading, at 59.4, marked a 0.6% increase over April’s 55.8, while posting a 5.8% annual gain, as well as a 12.3% increase over May 2023’s 47.3. The impact of the aforementioned increased costs was evident in the report, as its authors explained inventory movements “slowed significantly compared to observations from earlier in the year.

Not long after its key competitor, UPS, rolled out rate increases for several of its service offerings, Memphis-based global freight transportation and logistics services provider FedEx this week rolled out some rate increases of its own.

In this podcast, Jeff Berman, Group News Editor for Logistics Management and the Peerless Media Supply Chain Group, interviews Brandon Fried, Executive Director at the Washington, D.C.-based Airforwarders Association (AfA).

Ongoing U.S. trade policy shifts—including new de minimis rules for Chinese shipments—are reshaping global logistics. With rising tariffs and reduced exemptions impacting cross-border e-commerce, Armstrong & Associates projects 2025 third-party logistics (3PL) revenue to hit $316.2 billion, up 4.5%, fueled by early-year growth despite increased uncertainty.

Logistics industry braces for prolonged legal battle over IEEPA, as tariff status whiplash complicates supply chain strategy and capital planning.

In its ruling, the U.S. Court of International Trade stated the President Trump had misused the International Emergency Economic Powers Act (IEEPA) of 1997, in steps he took to implement tariffs on various consumer and industrial products, which include the 10% global tariff on U.S. trading partners and also 25% tariffs placed on Canada and Mexico, and 30% tariffs on China.

The April shipments reading, at 1.058, fell 3.6% annually and was up 0.4% compared to March. April expenditures, at 3.267, were up 3.3% compared to March and rose 1.2% annually.

Commerce reported that April retail sales, at $724.1 billion, were up 0.1% compared to March and up 5.2% annually. NRF reported that April’s retail sales which are based on Census data and exclude automobile dealers, gas stations, and restaurants, fell 0.1% on a seasonally-adjusted basis, from March to April, and rose 5.1% annually, on an unadjusted basis.

Under the terms of the agreement, the U.S. and China said in a joint statement that, effective May 14, U.S. tariffs on Chinese imports will drop from 145% to 30%, while China will cut its own tariffs on American goods from 125% to 10%. And President Trump’s 20% fentanyl-related tariff will stay in place, but most of the broader trade war measures will be temporarily relaxed. These changes will remain intact for 90 days, through August 12.

On the revenue side, the report found that 71% of respondents forecasted positive revenue growth, down 3% from the second quarter, and up 6% compared to the first quarter. And it added that 16% of respondents are neutral, up from 12% in the second quarter, with 14% negative, matching the second quarter.

The U.S. Department of Commerce labeled it a historic trade deal-providing unprecedented access to the U.K. markets while bolstering U.S. national security. And it added that the trade deal will usher in a golden age of new opportunity for U.S. exporters, establishing a long-sought level playing field for American producers. 

The Federal Reserve announced it again decided to maintain the target range for the federal funds rate at 4.25%-to-4.5%.

The April Services PMI, at 51.6 (a reading of 50 or higher signals growth) increased 0.8% over March, growing, at a faster rate, for the 10th consecutive month, and for the 56th time in the last 59 months, going back to the initial recovery from the pandemic in June 2020. It was 1.0% below the 12-month average of 52.6, with October 2024’s 55.8 and June 2024’s 49.2 marking the respective high and low readings over that period.

This move is expected to have a major impact on online retailers like Shein and Temu, which rely on sending goods directly to U.S. shoppers without paying tariffs.