The First Quarter of 2026 has been challenging times for international transportation. The implementation of broad and changing tariffs by the current US Administration in 2025 has handcuffed business' ability to strategically plan and implement consistent purchasing strategies. The Supreme Court ruling that those very tariffs are illegal and need to be rebated to importers has created additional challenges. This turmoil has affected rates and services for air and ocean transportation in converse ways. If this issue was not enough of a challenge the military action with Iran has created additional supply chain uncertainties.
Air rates have become a "bouncing ball" significantly rising and falling weekly as manufacturers look to supply inventories on a short term basis as needed due to the inability to plan long term. Ocean rates have dropped to levels unseen in decades. In the past this would have been a catalyst for increased shipping but the vacuum has not been filled due to weak consumer sentiment in the US. As a result ocean carriers have reduced sailings and increased transit times by adding port calls to existing schedules or altering routes to avoid conflict areas.
In spite of these challenges we have been able to maintain consistent business by solving problems. This has been accomplished by effectively handling project cargo and complicated time sensitive transportation needs. Our worldwide network has been expanded adding direct relationships in the Pacific Rim as many suppliers look for alternatives to China. We have also strengthened our domestic network in support of routing freight throughout the United States that is imported from overseas. This has led to expanding work with more Partners but we believe that there are many of you who are not taking advantage of the services we offer thereby increasing your bottom line. We understand that international freight is tedious, time consuming and detailed oriented. Let our team do the work on your behalf to increase business. I will be contacting each and every Partner directly in the Second Quarter to discuss opportunities.
In a reverse trend we have seen a significant increase in International small parcel shipping one off movements (primarily DHL and Fedex) most likely due to the strong rates negotiated by the Carrier Relations team. Specifically the DHL 4 program and DHL Heavyweight options have added more competitive scenarios to our matrix that have driven an uptick in that business. Keep in mind tnese are shipments that are traditionally below 100 kilos but can exceed that in special scenarios. Do not hesitate to contact us for the best options.