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DGX - Dependable Global Express

1/3/2025

NEWS UPDATE

January 3, 2025

Dear Valued Customer,

We are providing the following for your information:

Holiday Schedules

The offices listed below will be closed for the holidays as follows:

Australia	Australia Day (Observed)	January 27
Japan	Coming-of-Age Day	January 13

Please remember that certain offices are across the International Dateline. The dates above are their dates, not the actual U.S. date.

International Longshoremen’s Association (ILA) Strike Update

There have been no new developments since our last communication.

In October, tens of thousands of International Longshoremen’s Association (ILA) members ended their three-day strike on the East and Gulf Coast ports. The decision to end the strike was a welcome development for the workers, small business owners, and consumers across America that rely on the ports for vital goods. The ILA’s decision to end the strike followed an agreement with the East and Gulf Coast port terminals, represented by the U.S. Maritime Alliance (USMX) to increase pay and extend the current contract through January 15, 2025 to negotiate other issues for a new long-term agreement. This means the ILA could begin another strike should a new labor agreement not be reached by then.

Ocean carriers are starting to announce surcharges to cover additional costs from potential labor disruptions.

Mexico Ends Border Skipping Loophole

Please get in touch with your local DGX team for the latest information and planning assistance to minimize possible disruptions and increased costs to your supply chain.

Mexican President Claudia Sheinbaum has issued a decree that effectively ended the popular “border-skipping” strategy many U.S. e-commerce sellers used to avoid tariffs on Chinese goods. This decision, which was announced on Dec. 19 and took effect immediately, primarily targets apparel imports and is set to have far-reaching consequences for the industry.

Key changes in the decree

The new decree introduces several significant changes:

Tariff increases: Import duties on 121 apparel products and 17 made-up textiles have been raised from 20-25% to 35%. Additionally, 17 tariff headings related to textiles now face a 15% duty, up from 10%.
IMMEX program restrictions: The decree excludes certain finished products, including clothing and textile articles classified under HTS Chapters 61, 62, and 63, from temporary importation under the IMMEX program.
Immediate effect: These changes are effective immediately, affecting even goods currently in transit.

Impact on the Industry

This sudden policy shift is expected to have significant implications:

U.S. e-commerce sellers: Many large U.S. e-commerce sellers who relied on this strategy to circumvent tariffs urgently need to reconsider their supply chains.
Mexican manufacturing: The move aims to boost domestic textile and apparel manufacturing in Mexico, potentially creating more jobs in these sectors.
Supply chain disruptions: Companies with goods already en route to Mexico may face unexpected customs duties, leading to potential short-term disruptions.

Source: FreightWaves

Tariffs From Mexico, Canada, and China

President-elect Donald Trump has announced a plan to impose tariffs on all products imported from America’s three largest trading partners: Mexico, Canada, and China. The move could impact the prices of a range of imported goods, from cars to electronics.

Trump said via social media that he intends to sign an executive order on Jan. 20, 2025, to charge a 25% tariff on all products coming from Mexico and Canada into the United States. Different numbers have been mentioned for China including a tariff upward of 60% on all Chinese goods, as well as an across-the-board tariff of either 10% or 20% on all other imports into the United States.

Source: TIME

Shippers are still on time to place orders prior to the projected potential tariff increases as well as the Lunar New Year.

Please get in touch with your local DGX team for the latest information and planning assistance to minimize possible disruptions and increased costs to your supply chain.

Guam, CNMI, and Micronesia Service Rates for 2025

In their effort to keep pace with rising costs, Matson Navigation Company (“Matson”) announced that they will increase its Guam, CNMI, and Micronesia tariffs by the following increments effective

February 2, 2025:

West Bound East Bound

Per Container $100 Per Container $100

Terminal Handling Charge $150 Terminal Handling Charge $90 Guam/$150 Micronesia

W/M $5 W/M $5

Vehicle $100 Vehicle $100

Hazardous Cargo $50 Hazardous Cargo $50

As a result, our Guam, CNMI, and Micronesia rates will increase by similar amounts for FCL-

Full Container Loads. For LCL-Less-than-Container Load cargo, our Customer rates will be raised based on various factors, including the commodity, density, and current costs. These changes will occur with shipments sailing on or after February 2, 2025. Please get in touch with your Account Executive to discuss any adjustments to your current rate levels.

We thank you for your business and continued confidence. Should you have any questions, please contact your local Account Executive or our Customer Service Support Center at 1-800-488-4888 or

1-310-537-2000, Ext. 2020.

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Should you need any assistance, contact your local DGX office or call us at 888-488-4888.

We wish you and your loved ones a healthy and prosperous 2025.