Parcel Politics, Sinking Rates, & Tariff Tensions
Good morning!
Supply chains are moving fast—sometimes too fast. Case in point: USPS pulled a full U-turn in under 12 hours on its China shipping ban. Blink, and you missed it. Meanwhile, LNG shipping rates have crashed harder than your uncle after Thanksgiving dinner, down 90% since November. And just when you thought things couldn’t get wilder, U.S. imports hit a record-breaking $293.1 billion in December as businesses scrambled to dodge tariffs—because nothing says “smart planning” like a last-minute shopping spree.
Buckle up, folks. Today’s supply chain headlines are moving at freight-train speed (assuming it’s not stuck at a congested port). Let’s dive in. 🚀
“The price of success is hard work, dedication to the job at hand, and the determination that whether we win or lose, we have applied the best of ourselves to the task at hand.”
USPS Flip-Flop on China Shipments
Well, that was fast. Less than 12 hours after announcing it would stop accepting packages from China and Hong Kong, USPS did a complete 180. As of Feb 5, 2025, packages are back on track, and they’re now working with Customs to handle the new tariff collection process.
This all started with a 10% tariff on Chinese imports, eliminating the exemption for goods under $800. USPS didn’t explain the sudden halt, but the quick reversal suggests they realized how much chaos this could cause for international shipping. Meanwhile, China wasn’t happy and called for the U.S. to stop politicizing trade.
💡 Why This Matters: If you move freight internationally, this shows how quickly trade policy changes can mess with your supply chain. Even a short disruption can cause major headaches for businesses relying on low-cost imports.
🔥 Hot Take: Logistics isn’t just about moving goods—it’s about keeping up with Washington. A tariff tweak nearly shut down China shipments overnight. If you're in this industry, staying ahead of policy shifts is just as important as tracking freight.
LNG Shipping Rates Take a Nosedive—But It Won’t Last
LNG spot charter rates in the Atlantic have crashed over 90% since November, dropping to just $4,000 a day. The industry bet big on a booming LNG market, but supply only grew 2.5% last year—nowhere near enough to justify all the new ships hitting the water.
On top of that, shorter shipping routes (thanks to U.S. LNG flowing to Europe instead of Asia) mean less demand for vessels. And with China slapping retaliatory sanctions on U.S. LNG, voyage lengths could shrink even more.
📉 Why It Matters: This is a logistics rollercoaster. Too many ships, not enough demand—great for shippers looking for cheap transport, but brutal for vessel owners.
🔥 Hot Take: The LNG market overbuilt, and now it’s paying the price. The cycle will correct, but until then, expect some rough seas.
U.S. Imports Hit Record High Amid Tariff Uncertainty
In December, U.S. imports hit a record $293.1 billion as businesses rushed to beat new tariffs. The result? A widening trade deficit and supply chains scrambling to keep up.
Trump’s 10% tariff on Chinese goods and a delayed 25% tariff on Canada & Mexico sent companies into panic-buying mode, jamming up ports and spiking demand. Meanwhile, China hit back with tariffs on U.S. goods and an antitrust probe into Google. Even Apple is feeling the heat.
📦 Why It Matters: These sudden policy shifts aren’t just headlines—they’re supply chain disruptors. E-commerce giants like Shein and Temu will take a hit as duty-free parcel exemptions vanish, while retaliatory tariffs could slow U.S. exports.
🔥 Hot Take: Tariff talk = logistics whiplash. Every new policy sends shippers into overdrive, rates swinging, and supply chains scrambling. If you’re in this game, buckle up—it’s not slowing down.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for April 10, 2025, from iLevel Logistics Inc.