UPS Surcharges, Canada Post Crisis, Tariff Turmoil, and update on Manzanillo
As the logistics world spins faster than ever, shippers are navigating a maze of uncertainty—rising surcharges, tariff shocks, and fractured trade lanes. One headline might make you rethink your fulfillment strategy; another could shift your entire supplier base. In this week’s top news roundup, we spotlight five stories that every shipper should have on their radar. These aren’t just headlines—they’re real-time market signals that impact your costs, delivery times, and long-term strategy.
1. UPS Surcharge Shake-Up Hits Fuel, Bulky Goods, and More
UPS introduced another round of surcharge increases, including a 100-basis-point hike in domestic fuel surcharges and new, higher fees for bulky and oversized packages. Delivery area surcharges and collect-on-delivery fees are also climbing, while upcoming changes in August will apply weight and dimensional thresholds for large-package surcharges. FedEx has followed a similar path, signaling a trend of frequent, profit-driven adjustments.
[TL;DR] Key Takeaway: Rising surcharges are now the norm, not the exception. Shippers must optimize packaging, rethink fulfillment networks, and negotiate smarter to keep costs in check.
2. Canada Post Crisis Sends Shippers Scrambling to Private Carriers
A union-driven overtime ban at Canada Post has caused a 65% plunge in parcel volume, pushing retailers toward alternatives like UPS, FedEx, Purolator, and DHL. Private carriers have responded with network shifts and, in some cases, their own surcharges. With no clear resolution in sight, brands are urged to diversify carrier relationships and build in buffer time for disruptions.
[TL;DR] Key Takeaway: Carrier diversification is more than a risk strategy—it’s essential to ensuring service continuity when national providers stumble.
3. Section 301 Tariff Exclusions Extended—But Only Temporarily
The U.S. Trade Representative extended tariff exclusions on 178 product lines from China through August 31, 2025. While this gives short-term relief to importers of goods like industrial machinery and solar components, it also signals a continued push-pull between tariff enforcement and domestic manufacturing support. Importers are advised to track HTSUS updates and stay alert for changes beyond the summer.
[TL;DR] Key Takeaway: Temporary exclusions offer brief tariff relief—but the volatility of U.S.-China trade policy still demands close monitoring and contingency planning.
4. Trump Doubles Down on Steel and Aluminum Tariffs
Effective June 4, 2025, Section 232 tariffs on imported steel and aluminum doubled from 25% to 50%. While aimed at protecting domestic industry and tied to a revamped Nippon Steel–U.S. Steel deal, the move sparked sharp backlash from top U.S. trading partners like Canada and Mexico, raising fears of retaliation and downstream cost spikes for U.S. manufacturers.
[TL;DR] Key Takeaway: With tariff hikes and trade tensions rising, downstream supply chains face higher material costs and increased global friction.
5. Mexico’s Largest Port Grapples with Delays, Backlogs
Manzanillo, Mexico’s busiest container port, is still reeling from a customs strike that began in May. Though some operations have resumed, cargo backlogs and trucking congestion remain, delaying shipments and costing the industry an estimated $150 million. Full recovery may take weeks, stressing the importance of inland connectivity and cross-border visibility.
[TL;DR] Key Takeaway: Port delays in Mexico are a vivid reminder that localized labor disputes can have widespread consequences—especially as Mexico becomes a top U.S. trading partner.
Disruption is Inevitable—Losing Control isn’t
When the transportation landscape shifts—whether from trade tensions, service interruptions, or cost volatility—shippers need more than data. They need insights to act on it.
Intelligent Audit helps companies optimize every shipment, uncover hidden costs, and gain total visibility across their transportation network. By transforming disparate, complex shipping data into clear, actionable insights, our platform empowers logistics teams to make smarter decisions faster. From mitigating risk to improving service and uncovering cost-saving opportunities, we help shippers turn disruption into strategic advantage—so they can operate with confidence in any market condition.
