The world of shipping and the supply chain is as chaotic as ever these days. 2024 proved to be one of the most tumultuous years in the industry as many crises and uncertainty unfolded. As 2024 ended and 2025 began, those in the shipping world wondered what the next year would bring. So far, the answer is that there have been many developments in a short timespan since New Year’s Day.
With all of the stories unfolding in the shipping world, we have summarized what you need to know this week.
The Chinese De Minimis Exemption: Suspension Postponed for Now
When sweeping tariffs were announced against China last week, we reported on the de minimis exemption that exempts Chinese goods under $800 from additional customs scrutiny and fees being scrapped as part of the tariff plan. Now, the plan to remove the de minimis exemption and subject those goods to normal tariffs and duties has been postponed indefinitely. The main reason for the postponement is that the U.S. government is looking for ways to collect tariffs and duties on the goods without backing up the flow of goods into the U.S. There were major concerns that scrapping the exemption would cause delays on U.S. imports from China.
The Red Sea Crisis and the War in Gaza: Concerns on the Horizon
When President Trump took office three weeks ago, Israel and Hamas had a breakthrough in ceasefire negotiations and a ceasefire went into effect. Major shipping companies did not predict a quick end to the Red Sea Crisis, which has seen Houthi rebels attacking commercial shipping vessels and tankers in the Red Sea. Now, it appears they had good reason, with more uncertainty clouding the view on what will happen in the region. President Trump is threatening further military action in Gaza, and Hamas is responding by delaying the release of hostages. If hostilities resume, the Red Sea will definitely not be safe for shippers and the re-routing of ships will continue.
The Latest on Tariffs
We previously reported that President Donald Trump was planning on implementing steel and aluminum tariffs this week against nearly all countries. Those tariffs have now went into effect and no pause was ordered. The world of shipping and global trade watches closely for further developments and extended tariffs in the coming weeks and months.
Temu Sees a Supply Chain Revamp After New Trade Policies
Major Chinese retailer and shipper Temu, which ships consumer goods directly to U.S. consumers from China without any wholesalers or middlemen, is revamping its supply chain procedures following U.S. tariffs and other disruption. Sellers on Temu are being asked to handle the shipping of goods themselves, and other procedures such as setting prices and advertising will be handled by the seller, rather than Temu. With these changes, Temu may raise prices and U.S. customer demand may decrease.
2025 is off to a turbulent start for shipping and logistics, and that will continue for now.
The four areas we reported on this week are just the tip of the iceberg. Today, U.S. inflation numbers came back higher than expected, and consumer sentiment has decreased slightly. At some point, persistent higher interest rates and lower consumer demand will affect the world of shipping and logistics, but only time will tell how significant of an impact.
