Christmas is almost here, so don't forget to have a checklist that will make your eCommerce life a little easier during the holidays:
https://t.co/3gxB1JaYg4
Our ocean freight bookings from China to US increased 35% in the first day since the trade deal. A big backlog is looming, soon the ships will be sold out.
We would not expect the tariff resolution to come quickly or easily. Unfortunately it means higher costs for some, for others it may mean waiting as their margins may not be high enough to absorb the new cost structure.
Border Hopping - shipping items from China to Vietnam and then Vietnam to the US is being advertised everywhere. It is cheap, readily available and hard to stop.
After the speech, Trump signed an Executive Order to end the de minimis loophole from China. The problem is he already signed that 2 months ago, to occur once systems are ready. So:
1. the systems are ready
2. this ends de minimis from everywhere
3. they forgot the previous EO
The Asian additional tariff rates are really steep
China - 34%
Vietnam 46% (!!)
Taiwan - 32%
Japan - 24%
India - 26%
South Korea - 25%
Thailand - 36% (!)
Indonesia - 32%
Malaysia - 24%
We know that CN 3PLs offer very low prices but here are some downsides:
1) Fulfillment time may be very slow.
2) Returns can be very expensive.
3) Global trade is changing, for better or worse, and moving goods from CN may be harder than before.
@matiasmillion Given the recent events in global trade, it may be more complex fulfilling from CN to US or even CA markets moving forward. The other problem is returns. We've spoken to a few company where returns back to the CN 3PL is very pricey. The rest depends on what you're shipping.
Load them into the trebuchet probably.... but on a serious note, first see what caused the error... a bad process, a bad day, or something else. First investigate, then conclude.
Canada/Mexico 25% tariffs are still claimed to be on schedule. There is no way to be 100% sure, as there could be other delays and perhaps some sort of deal... but they are still on the table for the moment.