Tariff Loopholes, Surge Fees, and Contingency Tips

Welcome to Peace of Freight, your go-to newsletter for staying ahead in the world of freight and logistics!

Whether you’re importing goods into the U.S., toying with the idea of taking your business global or moving hazardous cargo – we’ve got you covered with our insights and updates every second Tuesday of the month.

I’m Juan Lara, an independent freight forwarder on a mission to prove that international shipping can be smooth and stress-free – if you only know how!

In this month’s newsletter

?? The De Minimis Dilemma: E-commerce's Tariff Loophole

?? Surge Fees for Asia-Pacific Imports

?? ACAS Update: Security Tightens

?? Weather the Storm: Ocean Shipping Contingency Tips

?? The De Minimis Dilemma: E-commerce's Tariff Loophole

Trade is like water; it finds its way. Especially in the world of e-commerce!

U.S. legislators have been ramping up their scrutiny of low-value e-commerce shipments from China. And they are focusing on those taking advantage of the de minimis rule, which allows goods under $800 to bypass tariffs.

This loophole has become a goldmine for platforms like Temu and Shein. But this has put huge pressure on U.S. Customs, which now struggles to manage nearly 4 million parcels a day.

Anticipating regulatory shifts, fulfillment specialists are getting creative. Some platforms are rerouting Chinese goods through Canada and Mexico before they hit U.S. soil. By clearing customs in Toronto and Tijuana, they offer cost savings and quicker delivery times to U.S. consumers.

It’s a clever way to keep the wheels of trade turning, no doubt about it. But, with Congress likely to revisit the de minimis threshold, companies dependent on these routes should stay on their toes. Their strategies to get affordable goods from China into the hands of U.S. shoppers might need to evolve rapidly in the face of new regulations.

?? Surge Fees for Asia-Pacific Imports

Starting on September 15, UPS rolled out a "Surge Fee" on all U.S. imports from China and 12 other Asia-Pacific countries. Here’s how this new charge, calculated per pound of billable weight, breaks down:

Fee price Origin countries and territories affected

$0.25 / lb Australia, Japan, South Korea, Indonesia, Malaysia, Philippines, Taiwan,

Singapore, Thailand, Vietnam

$0.50 / lb China, Hong Kong, Macau

This surcharge comes as carriers grapple with the flood of low-value e-commerce parcels pouring into the US from these regions.

And it’s not the only case. FedEx introduced a similar $0.25 per-pound fee on August 5 for imports from China, Hong Kong, and the Philippines.

With two big names having applied this extra fee, it begs the question—will others follow suit?

?? ACAS Update: Security Tightens

U.S. Customs recently introduced an emergency update to airfreight security regulations under the Air Cargo Advance Screening System (ACAS), effective August 21.

This shift aims to improve risk assessment and security for U.S.-bound cargo but has left many foreign carriers scrambling. For example, Korean Air temporarily suspended cargo sales from certain regions while seeking clarity on the new requirements.

To adapt to the new regulations, carriers must:

? Provide more detailed information about shippers and consignees.

? Submit data earlier to enable better risk assessment before cargo reaches the U.S.

? Focus on identifying all parties involved in the cargo process more clearly.

? Implement new security measures, including collecting IP addresses and validating contact information.

Now, you’ll be relieved to hear it’s not all “musts”. Carriers can also speed up clearance for lower-risk shipments by using additional data fields.

?? Weather the Storm: Ocean Shipping Contingency Tips

I’ve seen firsthand how disruptions—from port delays to route congestion and other unforeseen issues—impact operations. That’s why having a well-crafted contingency plan is so important.

Here are some practical tips to help you stay ahead.

? Broaden your port selection: Don’t put all your eggs in one basket. Spread shipments across different ports, including those on the East Coast and the Gulf, to avoid bottlenecks.

? Diversify your cargo routes: Consider alternative options, like the Panama Canal to East Coast ports. This is key to easing congestion and not depending on a single entry point.

? Improve visibility: Track your shipments in real-time. Knowing your containers’ location and discharge times helps you respond to disruptions.

? Forge relationships with carriers: Building rapport can help secure capacity and flexibility. Also, try using different freight modes to stay agile.

? Plan ahead: With peak seasons arriving sooner and lasting longer, proactive preparation is crucial.

Since we’re on the topic…

What are YOUR top strategies for contingency planning in ocean shipping? Let’s learn from each other ??.

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Happy reading, and stay tuned for more! ????