Topic: Air Freight

With softening demand and economic headwinds, freight forwarders are leaning on technology and value-added services to maintain their edge.

Quarterly consolidated revenue, at $21.5 billion, fell 0.7% annually, and adjusted earnings per share, at $1.49 (topping Wall Street estimates of $1.41), rose $0.06 annually. Consolidated operating profit, at $1.7 billion, increased 3.3% annually. 

A temporary tariff pause brings hope—but little clarity—as importers brace for rising costs, shipping delays, and volatile policy shifts.

In an Executive order issued yesterday, President Trump again increased tariffs on United States-bound imports from China. The rationale for the increase, as noted in the Executive Order, is due to retaliatory actions taken by China in response to tariffs placed on it by the U.S.

Commerce reported that March retail sales, at $734.9 billion, increased 1.4% over February and 4.6% annually. NRF reported that March’s retail sales which are based on Census data and exclude automobile dealers, gas stations, and restaurants, increased 0.6% seasonally-adjusted, from February to March, and were up 5.07% on an unadjusted basis annually.

China has increased its tariffs on U.S. goods imported into China up to 125%.

Despite geopolitical uncertainties and shifting trade policies, air cargo demand is outpacing capacity, keeping yields well above pre-pandemic levels.

In a social media message posted earlier today, President Trump said that the U.S. has changed course, in terms of the scope and timing of its tariff implementations.

In an Executive Order issued yesterday, President Trump said that in response to the State Council Tariff Commission of the People’s Republic of China planning to levy a 34% tariff on all goods imported into China from the U.S., which will take effect at 12:01 AM ET on April 10, that the U.S. will counter that and increase the 54% tariff it had placed on goods from China into the U.S., by another 50%, increasing the cumulative tariff to 104%.

Following President Trump’s April 2 announcement, in which he signed an Executive Order, entitled “Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits,” in which the United States will institute reciprocal tariffs on countries throughout the world, a bipartisan group of Senators late last week put forth legislation requiring Congressional approval of new tariffs.

Businesses, large and small, have put their decision-making “on pause,” at least until the fog lifts. But it is vital that shippers develop a tariff management plan to capitalize on this confusing, unexpected development in world transport and trade.

From tariff stacking to the end of de minimis, Flexport CEO Ryan Petersen and VP of Customs Bernie Hart break down Trump’s new trade orders.

Paul Bingham, S&P Global Market Intelligence Economist, explained that these new tariffs are not surprising, given what was expected—except that some of the individual country levels are higher than initially estimated.

As expected, President Trump today signed an Executive Order, entitled “Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits,” in which the United States will institute reciprocal tariffs on countries throughout the world.

As United States-driven tariff-related actions continue to dominate the narrative in supply chain and freight transportation circles, leading to a new “Trade War,” it is not an understatement to say it has brought with it a sense of economic uncertainty, and unease regarding macroeconomic conditions.

In its most recent assessment of U.S. infrastructure, the country received a C grade. While this may initially seem underwhelming, it represents an improvement compared to recent reports, with 2021 receiving a C- and 2017 a D+. It also marks the highest grade U.S. infrastructure has ever received.

As was expected, the United States this week placed matching 25% tariffs on Mexico and Canada (with energy resources from Canada receiving a 10% tariff), as well as an additional 10% tariff on goods imported to the U.S. from China, are now in effect.

In the memo, the White House explained that the United States has one of the most open economies and has among the lowest average weighted global tariff rates, coupled with the U.S. imposing fewer barriers to imports than major economies in other nations. It added that the U.S. has been treated unfairly by its trading partners, with the lack of reciprocity contributing to the annual U.S. trade deficit.

With former Wisconsin Congressman Sean Duffy’s confirmation hearing, for his nomination as President-elect Donald Trump’s pick at United States Secretary of Transportation taking place today, various modal transportation groups recently issued statements of support for Duffy.

We’ve assembled our annual panel of logistics and freight transportation analysts to share their insights on rate patterns in all the major transport modes in an effort to help shippers prepare their freight transportation budget for the coming year.