.png)
Want these insights in your inbox each Monday? Subscribe here.
Global Trade & Economy
US exempts 200+ agricultural products from reciprocal tariffs
The White House has rolled back reciprocal tariffs on more than 200 agricultural products, including coffee, tea, beef, tropical fruits, and various fruit juices. An executive order signed by President Trump exempts these items from the 10% global tariff and related country-specific duties introduced earlier this year, citing updated trade agreements as justification. The exemptions apply retroactively to imports entered into the U.S. as of Nov. 13, with refund eligibility following standard customs procedures. Full list of exemptions here.
US, South Korea formalize details of July trade pact
The U.S. and South Korea have finalized a deal cementing a 15% tariff rate on most South Korean imports while easing key trade barriers for U.S. goods. The agreement sets caps on potential future tariffs for sectors like pharmaceuticals and semiconductors and includes South Korea’s commitment to invest $350 billion in the U.S., including major funding for shipbuilding and other strategic industries.
Economic uncertainty throws off folding carton market
A new trends report from the Paperboard Packaging Council highlights growing uncertainty in the folding carton market as tariffs, inflation and weakening consumer confidence weigh on demand. After pandemic-era spikes and a 2022 restocking surge, shipments have since fallen sharply, with a continued slowdown expected through 2025. The PPC projects modest recovery beginning in 2026, supported by potential tax benefits and steadier economic conditions, with average annual growth of 0.8% forecast through 2029.
Transportation
DC court blocks FMCSA’s non-domiciled CDL rule
A federal appeals court has temporarily blocked the FMCSA’s new rule restricting non-domiciled CDLs, allowing states to resume issuing and renewing these licenses while a legal challenge moves forward. The lawsuit, brought by longtime driver Jorge Rivera Lujan, argues the rule prevents legally authorized immigrant drivers from renewing their CDLs and threatens their livelihoods. The pause comes as industry groups debate the rule’s safety benefits and thousands of affected drivers raise concerns about losing work.
Battle over non-domiciled CDLs deepens in California
A showdown over non-domiciled CDLs is escalating as California withdraws 17,000 immigrant-issued licenses and a federal court temporarily halts the DOT’s new licensing rule. The dispute — tied to stricter visa and English-proficiency requirements — threatens tens of thousands of drivers and has already prompted DOT funding cuts to California. Early signs of tighter long-haul capacity are emerging, while legal challenges could further delay implementation.
Electric-truck maker Harbinger raises $160 million
Harbinger Motors has raised $160 million in a FedEx-led Series C round, bringing total funding to $358 million since 2021. The company plans to scale production to 3,000 electric medium-duty trucks next year, up sharply from 400 so far in 2025, despite a roughly 10% drop in Class 5–6 truck sales through September.
Data shows US intermodal has a long-term growth problem
U.S. intermodal has sharply underperformed freight benchmarks, growing just 7% since 2015 despite booming imports and steady economic expansion. International volumes are constrained by port shifts and transloading, while domestic intermodal has lost share to trucking amid weak service and a prolonged trucking glut. Potential driver shortages could strengthen intermodal’s position, but analysts warn the sector faces deeper structural competitiveness challenges.
Union Pacific, Norfolk Southern merger approved by shareholders
Shareholders at Union Pacific and Norfolk Southern have overwhelmingly approved their proposed merger, advancing plans to create the first coast-to-coast U.S. rail network. The railroads say the deal will speed transit times and expand service, though regulators and industry groups have flagged competition concerns. The transaction is expected to close by early 2027, pending Surface Transportation Board approval.
CMA CGM expects softer 2026 due to trade, rate and Red Sea uncertainties
CMA CGM warns of a weaker 2026 as soft demand, overcapacity and a potential return to Red Sea/Suez routing threaten to push freight rates lower. The carrier is cautiously resuming escorted Red Sea transits while continuing to invest in dual-fuel ships and terminal assets. Third-quarter earnings fell sharply despite slight volume growth.
Last Mile & Parcel Freight
FedEx details contingency plans after MD-11 fleet grounding
FedEx is activating backup aircraft, commercial airlift partners, and expanded ground transportation to reduce service impacts as inspections begin on its grounded Boeing MD-11 fleet. The grounding follows FAA action and Boeing’s recommendation after a fatal UPS MD-11 crash. FedEx may also shift maintenance schedules on other aircraft to maintain network stability, CFO John Dietrich said.
USPS reports 5.7% decline in parcel volumes, $9B loss
The U.S. Postal Service reported a $9B loss for FY2025—an improvement overall, though controllable losses widened. Leaders cited stronger revenue and lower transport costs but emphasized the need to capture more parcel volume to reach financial stability. Heading into peak season, USPS is relying on major network upgrades, new sorting technology, expanded facilities and hiring, while continuing to pursue legislative reforms aimed at easing long-term financial pressures.
Postal Service plans to ‘open up the last mile’ for more shippers
The U.S. Postal Service is looking to expand how it leverages its first- and last-mile network, with Postmaster General David Steiner highlighting ongoing talks with UPS and other carriers to broaden last-mile services. USPS is also exploring same-day and next-day delivery partnerships with major retailers, aiming to meet rising demand for fast, reliable, and affordable delivery options.
Uber Freight pushes deeper into last-mile freight market
With shippers urgently seeking lower last-mile costs, Uber Freight is expanding its partnership with Better Trucks to offer more affordable delivery options. Executives say rising tariffs, soft demand and annual parcel rate hikes from UPS and FedEx are pushing shippers to cut providers and seek alternatives. The deal gives Uber Freight access to Better Trucks’ tech and network as it builds a broader middle- and last-mile delivery ecosystem aimed at cost-conscious merchants and e-commerce players.
.png){kind=spacer}
