As we all know, the 90-day global pause on tariffs started on April 9 and ends on July 8. China has a separate pause that ends on August 12.
Keep in mind, though, that the tariff deadline is based on arrival, not departure. For example, if a shipment leaves Vietnam before July 8 but arrives after that date, you’re paying an extra 46%. Same rule applies for China after August 12.
Not surprisingly, this has driven up freight prices across the board. Everyone’s rushing to beat the clock, which is shrinking space and spiking rates.
But here’s the catch: In some cases, overpaying for freight to hit a deadline can end up costing you as much as the tariffs you’re trying to avoid. And that’s not even counting the cash flow hit of holding too much inventory.
Our advice? Run the numbers. Weigh the cost of freight, tariffs, storage, and lost agility. Better yet, give us a call. We can help you analyze shipping, optimize spend, and stay agile.
Everyone’s rushing to beat the clock, which is shrinking space and spiking rates.
Behind the layoffs: UPS’ profitability strategy
The UPS earnings call was dominated by the news of facility closures and layoffs impacting 20,000 people.
I’d just ignore all the doom-and-gloom. The way I see it, UPS isn’t shrinking—they’re just streamlining. Of course, closing facilities and laying off 20,000 people will always be traumatic, but the company will save $3.5 billion, with an additional $1 billion coming from redesigning operations.
UPS is moving away from volume-at-all-costs, and focusing on high-margin, high-efficiency business. That’s a smart shift. As UPS and FedEx pull back from low-margin deliveries, regional and gig carriers will battle for the leftovers, driving up complexity and capping their own growth potential.
Lastly, UPS is also going after more Healthcare volume, which is more proof of their shift to value over volume.
UPS is moving away from volume-at-all-costs, and focusing on high-margin, high-efficiency business.
Mid-Year Rate Hikes: UPS & USPS
📦 Do you remember when we said that having a single annual price increase was a thing of the past? As it turned out, we were right.
UPS isn’t waiting for January. Rate hikes are coming June 2:
- Additional Handling & Large Package fees (Zone 7+)
- Over Max Limits fees
- Shipping Charge Correction Audit Fees
- Remote Area Surcharge now applies to Ground Saver
- Zone Chart changes
Watch the zone chart updates closely. They often push ZIPs into more expensive categories without obvious notice. If your business ships large or Zone 7+ packages, it’s time for a shipping profile review ➡️ DM me.
📫 USPS joins the party July 13 with 10%+ hikes on Ground Advantage and Parcel Select. Priority Mail Express and International stay the same.
Too much info to keep track of? Let us do it for you. Our Premium Shipping Program gives you special savings and exclusive group rates previously only available to high-volume shippers. No minimum volume required! Set up a discovery call with us and find out how we can save you money on your carrier rates.
Let us do it for you. Our Premium Membership Program keeps your shipping strategy optimized with no volume minimums. Set up a discovery call with us and let’s find out how we can save you money on your carrier rates.
Returns Are Booming
Tariffs create huge challenges for retailers, but it’s also a massive opportunity in reverse logistics. Have you ever wondered what happens when you return a product? This New York Times article does a great job of explaining the process.
Now’s the time to optimize your reverse logistics. Need to make money off of your idle inventory? Let’s talk.
This is a must-listen!
It’s fascinating to look at current events through a historical lens. Salvatore Mercogliano, Ph.D., What’s Going on With Shipping , a maritime historian and YouTuber, explains how global shipping, maritime trade and tariffs intersect in this episode of The Logistics of Logistics podcast: From Ports to Politics: Decoding Tariffs, Ocean Shipping, and Supply Chains. Worth a listen.
