US Logistics Update [Oct 11, 2025]-English

• President Trump announced on the 10th that he will impose ultra-high tariffs (adding 100% to existing tariffs) and export controls on core software against China starting November 1st. This marks a sharp reversal in U.S.-China relations, which had appeared to enter a period of relative management through the tariff truce and compromises like the sale of Chinese video-sharing platform TikTok's U.S. operations. This comes after China recently halted imports of U.S. soybeans, announced plans on the 9th to strengthen export controls on rare earth alloys, and then declared on the 10th that it would impose a ‘special port service fee’ on U.S.-related vessels starting the 14th, prompting a strong backlash from President Trump. While these moves by both sides, ahead of the upcoming US-China summit, appear to have elements of a pre-summit standoff, analysis suggests they may signal a serious conflict beyond mere posturing. Specifically, it is interpreted as China expressing confidence that it can gain an advantage in the tariff war by using rare earths and other resources as leverage.

Meanwhile, despite U.S. tariff revenues doubling, interest payments on the U.S. public debt have

surpassed $1 trillion. U.S. tariff revenues for fiscal year 2025, ending in September, reached $195

billion, more than doubling from last year. However, net interest on the public debt surpassed $1

trillion for the first time, exceeding defense spending and Medicare welfare expenditures. This is

because tariffs account for only 3.7% of total federal revenue, while personal income taxes make up

51%. Furthermore, despite Elon Musk, who oversaw the Department of Government Efficiency

(DOGE), advocating for $2 trillion in budget cuts, the actual savings fell significantly short. Resolving

the $37 trillion public debt, America's most pressing issue, requires tax increases rather than tariffs,

but political complications make a solution distant.

• The federal shutdown has entered its second week, impacting actual federal government services, yet there is no sign of resolution. This week, over 250,000 federal employees went without pay, and services closely affecting daily life—such as airport security screening, IRS operations, and National Park Services—are experiencing disruptions. Notably, for air travel, while security screening staff shortages previously accounted for 5% of flight delays, that figure has now risen to 50%.

ㅇ North American Vessel Dwell Times

• CBP Operations During U.S. Federal Government Shutdown

  CBP continues processing duty refunds, entry summaries, protests, and liquidations during the shutdown. New tariff measures on wood products scheduled for October 14 will also proceed as planned. However, refunds are currently unavailable. This includes ACH (automatic transfer) refunds, drawback claim payments, refunds for post-summary corrections, and refunds for protests. All payments in the form of checks issued by the Treasury Department are suspended. Meanwhile, CBP and the U.S. Trade Representative (USTR) are classified as essential agencies, so their employees are not furloughed. However, most employees in the key departments of the International Trade Administration (ITA) that review anti-dumping and countervailing duty (AD/CVD) cases are on mandatory furlough. This has significantly delayed AD/CVD investigations and review work. Meanwhile, the Federal Maritime Commission (FMC) announced that all operations, including new registrations, ceased as of October 1st. However, online services like tariff filings remain available, and data and information on the FMC website can still be accessed, though updates are not being made.

• U.S. September Container Imports Down 8.4%... Imports from China Plunge 22.9%

  U.S. container imports in September decreased by 8.4% year-over-year, with imports originating from China plunging 22.9%. According to CBP data, September port throughput reached 2.31 million TEUs, the third-highest September volume on record but still down year-over-year. Meanwhile, the National Retail Federation (NRF) and Hackett Associates stated, “Retailers brought in volumes early ahead of tariff hikes, ending the peak season early,” forecasting monthly imports will fall below 2 million TEUs through year-end.

• U.S. Government Shutdown Causes Air Travel Disruptions to Worsen... Impact on Air Cargo Also Inevitable

  The U.S. government shutdown has exacerbated air traffic control staffing shortages, leading to widespread flight delays nationwide. With controllers working unpaid, concerns are growing about staff attrition, which is expected to directly impact not only passenger flights but also air cargo operations. The Transportation Security Administration (TSA) warned, “Security screening wait times may increase as working conditions for security personnel deteriorate.” The air cargo industry is also concerned about operational schedule instability due to delays in security screening procedures and disruptions in ground handling operations. Experts warn, “If additional funding for airport operations isn't secured by early November, some airports could face operational shutdowns.” Particularly, even a slight expansion in the furloughs of air traffic controllers and security personnel could easily risk collapsing the entire aviation network, making cascading disruptions to air cargo inevitable.