U.S. Economy
On Friday, February 7, President Donald Trump signed an executive order suspending the de minimis exemption for imports from China and Hong Kong. This means that goods valued at less than $800 will continue to be exempted from duty, which is expected to have no immediate impact on Chinese e-commerce volumes, including Ali, Temu, and Shein. Earlier, on February 4, the Trump administration announced that it would impose additional 10% tariffs on China and suspend the de minimis rule, which led to the USPS refusing to accept mail from China on Tuesday and resuming it on Wednesday.
The Trump administration's policy of imposing high tariffs on goods is accelerating the “stocking up” trend among U.S. businesses and consumers, according to CNBC, ABC, and other media outlets. Many companies have been stocking up in anticipation of the Trump administration's tariffs, and the trend is accelerating as Trump's “tariff bomb” becomes a reality rather than a threat. Volumes are expected to increase in the near term as companies continue to stock up on goods from some of the countries facing tariffs.
Maritime Cargo Market Trends
North America Vessel, Rail Dwell time (Week 6 / Flexport)
Suez Canal Update
The Suez Canal Authority (SCA) is working to restore shipping traffic through the canal after Houthi rebels pledged to honor last month's ceasefire in Gaza and halted attacks on commercial vessels in the region. However, major shipping lines remain very cautious about resuming operations, saying security concerns have not been fully resolved, industry sources say.
MSC launches new Refrigerated cargo monitoring system
On Monday, February 3, MSC announced the launch of iReefer, a new service that provides real-time location and temperature of reefer containers. MSC has already equipped 210,000 reefer containers and more than 500 ships with the new technology, and the free version, iReefer Essential, is already available on MyMSC, while the paid versions, Pro and Ultimate, will be available on March 1.
Air Cargo Market Trends
More on the De Minimis Rule for Chinese Cargo
President Trump's reversal of the suspension of the de minimis rule for cargo from China suggests that the de minimis rule could be suspended at any time, as the executive order states that the de minimis rule will be suspended as soon as the U.S. Customs and Border Protection (CBP) and the U.S. Postal Service (USPS) report to the President that they have adequate systems in place to fully and expeditiously process customs receipts, citing a lack of systems for processing customs duties when they are collected.