Featured Headlines:

A Federal Appeals Court (7–4) Struck Down Trump’s Broad Tariffs: IEEPA ≠ Blank Check

• Affects April’s reciprocal tariffs plus fentanyl-linked duties.
  • Tariffs stay until Oct. 14 pending Supreme Court.
  • White House wants expedited review; legal experts see limits ahead.
  • Importers eye refunds — $30B/month at stake.
  • Workarounds: Section 232, 301, or Congress (Supreme Court?!).

“Courts may stall, tariffs may fall — but supply chains still face it all.”

Tariff Turbulence Grounds Air Cargo

• Tariffs are clipping wings and rerouting freight to the seven seas.
  • Air: 3–5 days. Sea now down to 15–28. Goodbye, speed premium.
  • IATA slashed its 2025 forecast from +5.8% growth to flatline.
  • U.S. air cargo down 25% through May; China–U.S. flows down as much as 60%.
  • E-commerce? Bookings halved.
  • Chinese exporters are bulk-shipping to warehouses instead of flying direct.
    • Fewer shipments equals less profit, gang.
  • U.S. freighter arrivals are down 30% since April. Carriers like UPS and FedEx are pivoting to hybrid models. Does ANYBODY know what that means?!
  • Tariffs = turbulence: margins padded by surcharges, but demand’s altitude keeps sinking.

“When planes can’t climb, ships bide the time — but both face the tariff grime.”

First-ever global shipping carbon fee sets sail in 2027.

• $100/ton above thresholds, funneling cash to green tech + developing nations.
  • No gimmicks — straight to freight invoices.
  • Analysts see 5–10% cost hikes depending on lane + fleet.
  • Winners: LNG-, methanol-, ammonia-powered ships.
  • Losers: fleets stuck on dirty fuels.
  • Importers juggling tariffs now must price in carbon, too.

“When green fees rise, the fleet modernize — or pay at the invoice size.”

• Per our previous Shap Flash, on August 28, the Office of the U.S. Trade Representative (USTR) announced that it will extend the current exclusions under the Section 301 investigation into China’s technology transfer, intellectual property, and innovation practices.
• These exclusions, which had been set to expire on August 31, will now remain in effect through November 29, 2025.
• Click HERE to read the full notice.
• Don’t let another update pass you by! Sign-up to receive our complimentary Shap Flash alerts in real-time—or bookmark our Section 301 Tariffs page.

At Least 25 Countries Hit Pause on Packages to the US

• The End of the “de minimis” exemption is the culprit!
  • Agencies had no time to prep = chaos.
  • Germany, France, Spain, Italy, Belgium, Sweden, Denmark, UK: all suspended.
  • Deutsche Post/DHL won’t accept business parcels. Gifts + letters under $100? Still allowed, but under scrutiny.
  • India, Japan, South Korea, Singapore, Thailand, Australia, Mexico, New Zealand: most halted small-parcel exports.
  • Net effect: personal gifts crawl through, commercial parcels stall.

“When parcels can’t post, exporters roast — small shippers pay the most.”

China’s Squeeze = India’s Gain

• “Made in China, shipped to Mumbai” is the new detour de force.
  • Xi is scrambling for outlets; shippers are hedging (not hogging) the US lane.
  • Hookham (famous in the Global Shippers’ Forum) warns: Modi + Xi cozying up should make Washington squirm like a worm.
  • Expect more blank sailings to US as supply and demand wobble and shift.
  • Xeneta’s Peter Sand: a China–India axis could redraw trade maps, even if Europe stays steady. Europe steady?!  Europe steady??!!
  • U.S. imports sag: many forwarders see a 5-6% annual drop, with Q4 containers nearly 20% below last year. At Shapiro, our services are so good, we have seen a 168% increase, expecting 200% or more in Q4!
  • Ocean charter lengths ballooning: from 8 months to 2+ years despite plunging spot rates. This is a sure sign that ocean carriers are market hedging (and hogging?), awaiting new global realities!

“From Beijing to Bombay, tariffs pave the way — while US imports decay.”

Barking about Parking

• Truckers aren’t short on grit — they’re short on parking.
  • Veteran analyst Noel Perry says the U.S. truckload sector loses $100+ billion a year hunting for spaces.
  • Only 638,000 truck-suitable spots exist out of 23.4 million total needed — 30% of what’s “correct.” That’s like inviting 100 drivers to dinner and setting out just 30 chairs.
  • An hour lost daily finding parking costs about $15K per driver per year.

“If the wheels can’t roll, the freight won’t flow — it’s a billion-dollar blow.”

Tariff Tango at the Border

• Cross-border freight is more stumble than salsa.
  • U.S.–Mexico northbound crossings rose a meager 0.3% in July, after sliding 2.2% in Q2.
  • Key gateways Laredo, El Paso, Otay Mesa fell 3.2% YoY, pressured by tariffs and weak demand.

“When tariffs loom, the trucks slow soon — a tango out of tune.”

English Rules on the Road

• DOT is tying language to dollars.
  • California, New Mexico, and Washington must enforce English proficiency tests or risk losing millions in federal enforcement funds.
  • Since June, failing means an out-of-service order: fail the test, park your rig.

“No English, no go — another rig stuck in limbo.”

Rail Rivalries

• The rail chessboard is in motion.
  • BNSF + CSX launched new intermodal routes linking SoCal with Charlotte, Jacksonville, and Phoenix–Atlanta.
  • They’re adding international services from Kansas City to East Coast ports, countering UP + NS, whose merger could create America’s first coast-to-coast railroad.

“Rivals link and rivals merge — who’ll control the freightage surge?”

Merger Mayhem: Who’s on Board?

• CPKC wants regulators to derail UP’s $85B NS takeover, arguing partnerships deliver the same perks.
  • BNSF owner Warren Buffett agrees: alliances beat messy mergers.
  • But President Trump’s ouster of STB critic Robert Primus may grease the tracks. Primus says he’s still on the board — legally and literally.

“Merge or partner, fight or play — the rails roll on either way.”