Once upon a time, people called logistics a boring industry… It’s crazy how far things have come since then. Logistics is no longer the quiet, behind-the-scenes industry people once thought it was. I can’t remember the last time we had a reasonably quiet week.
With market fluctuations caused by tariffs, a crisis at strategic trade chokepoints, and policy changes, supply chains are changing daily. But we’re here to help you stay one step ahead. Let’s get started!
There could be more rate increases and reduced vessel capacity around the Strait of Hormuz.
Strategic focus: The strait of Hormuz
As of June 26, a ceasefire is in place between Israel and Iran, which means the Strait of Hormuz is currently open for business. This is good news, but the situation is far from stable. Interference in the area continues, including reports of electronic jamming, which increases operational risk.
Why should this matter to you? Because roughly one-fifth of the world’s liquefied natural gas and a quarter of all oil traded by sea flows through this region. Most of it heads to Asian markets, but the ripple effects are global. Our partners at GDS Freight are already seeing extended transit times for cargo routed through Dubai, which may particularly affect South African exports and imports.
As happened in the Red Sea, there could be more rate increases and reduced vessel capacity around the Strait of Hormuz. If you need ocean freight capacity in the coming months, booking early will help you stick to your schedule and budget.
Did you know that we offer end-to-end international freight and compliance services?
- Ocean & Air International Freight
- Compliance Services
- Supply Chain Management Services
→ DM me today and let’s discuss how we can streamline your operations and reduce your costs.
Canada faces delivery disruptions
DHL Express Canada has temporarily suspended operations due to a labor strike involving 2,100 employees, which is directly impacting parcel deliveries. Complicating matters further, new legislation prohibits the use of replacement workers, which restricts DHL’s ability to maintain its network operations.
Meanwhile, since May, Canada Post employees have refused to work overtime as their contract negotiations remain unresolved. While not technically a strike, the lack of overtime could cause big delays in deliveries.
Fred Smith: A giant of the parcel industry
Fred Smith, the visionary founder of FedEx, passed away at the age of 80. His story is impressive. In 1971, he founded FedEx Express, a company designed for urgent deliveries that would go on to transform global delivery standards.
Legend has it that, in the company’s early days, Smith took the last $5,000 the company had to Las Vegas, where he won $27,000 playing blackjack to cover the fuel bill. In just over ten years, FedEx had become a billion-dollar business.
Today’s FedEx continues to evolve—and raising rates in the process. Fuel surcharges for Ground and Home Delivery are increasing by about 2% as of June 9, and the company has updated its DAS and E-DAS zone mappings. These changes could impact your costs across the board, so be sure you’re not caught off guard.
Too much info to keep track of?
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Small parcels may also face new taxes in Europe
The European Union has proposed a flat fee of two euros on small parcels shipped directly to consumers. Currently, over 90% of these parcels come from Chinese platforms like Temu and Shein. The proposed tax would eliminate the customs-free status of packages valued under €150, subjecting them to broader VAT and import duties.
Similar policy changes are under review in the UK, where the current de minimis threshold is £135. Industry groups are lobbying to lower or eliminate that threshold, which could lead to more consistent regulation but potentially higher costs.
What would this mean for businesses? Higher compliance requirements and increased costs for cross-border e-commerce, especially for high-volume, low-value shipments. We’re closely monitoring these shifts to help our clients stay compliant and cost-efficient.
A simple metal box that transformed our lives
Innovation doesn’t always have to be flashy. Sometimes it’s just smart. Take the shipping container, for example. Malcom McLean, a truck driver, invented it with a simple idea: What if you could lift the entire trailer off the truck instead of unloading everything by hand?
By standardizing the way goods were packed and shipped, containerization reduced shipping costs from $5.86 per ton to just $0.16—an improvement in efficiency of 3,600% that led to a global transformation.
Don’t miss this BBC documentary on how this invention reshaped the economy. It’s a must-watch for anyone in logistics.
