Household Goods Shipping Update

May 7, 2025

One of the things that I love about this business is that you are always learning new things. If you have never heard of “tariff washing,” you are not alone.

China exporters have started shipping their goods through other countries to avoid the new tariffs impacting the sales of their products. This tariff washing has put an unexpected strain on ports in different countries that were not anticipating the sudden surge of volumes due to this place-of-origin washing” service.

As the Journal of Commerce reports, there is a spike in demand for Free Trade Zones (FTZs) from US importers: “FTZs are designated domestic locations, typically close to a port of entry, where shippers can store cargo that has not officially entered the US while deferring payment of tariffs and duties. The sites, administered by US Customs and Border Protection (CBP), can also be used for processing or manufacturing.”

To compound matters, key ports in the EU are experiencing heavy delays due to labor strikes and the increased volume mentioned above. More than 100 ships are waiting at the Port of Antwerp due to strikes starting there last week, and some of the other major ports are seeing delays of a week or more.

Even if the tariff and labor situations were resolved today, it is safe to expect delays for the next two months.

As the ocean freight supply chain becomes strained, some shippers will start utilizing air shipments more, which could impact pricing and availability.

Speaking of air shipments, over 200 flights have been canceled since the military conflict started with India and Pakistan yesterday. Flights in, out, and through the area will be delayed due to air space closures over Pakistan and some airport closures.

As we dig into May, capacity in the US continues to be excellent. I needed to add some good news here.

For further information, please contact Alex Talbot (alex.talbot@karlibow.com)

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