Amazon Set to Overtake USPS 📦

Amazon is on track to become the largest U.S. parcel carrier by 2028, according to Pitney Bowes’ 2024 Parcel Shipping Index. The report forecasts Amazon will ship 8.4 billion parcels that year, edging past the U.S. Postal Service’s 8.3 billion. The e-commerce giant has already overtaken FedEx and UPS in shipping volume, driven by rapid growth and shifting fulfillment strategies.

💪 Self-reliance : UPS’ plan to cut Amazon deliveries by half in 2025 has accelerated Amazon’s reliance on its in-house logistics network..

📦 Rise of small players: At the same time, smaller carriers are gaining ground, with non-Big Four providers growing parcel volumes by 22.6% in 2024, according to the report.

President Donald Trump has finalized a trade deal with Vietnam that will allow U.S. goods to enter the country duty-free while imposing a 20% tariff on Vietnamese exports to the United States. The agreement replaces a previously announced 46% tariff and comes just before a July 9 deadline Trump set for implementing steep reciprocal tariffs.

📉 Tariffs on Transshipped Goods: The deal also includes a 40% tariff on transshipped goods—products originating from other countries like China but routed through Vietnam—aimed at curbing what Washington calls tariff circumvention.

📊 Growing Deficit: The U.S. ran a $122 billion trade deficit with Vietnam in 2024, making it America’s third-largest trade gap.

🇨🇳 Cautious China: According to the Financial Times, China’s commerce ministry stated that it is reviewing the US-Vietnam trade deal and warned that it "firmly opposes any deal made at the expense of China’s interests."

China’s manufacturing sector remained in contraction for a third straight month in June, with the official Purchasing Managers’ Index (PMI) coming in at 49.7, just below the 50 mark that signals growth. The reading, although slightly higher than May’s 49.5, indicates continued pressure from ongoing U.S. tariffs even after the recent China–U.S. trade truce.

Subindices showed some improvement, with production edging up to 51.0 and new export orders rising to 49.7, suggesting a mild recovery. However, economists remain cautious, pointing to weak export momentum and fading fiscal stimulus as key risks to sustaining growth in the second half of 2025.TLD

German vehicle exports to the U.S. dropped sharply in April and May following President Donald Trump’s imposition of 25% auto tariffs on European cars and car parts.

According to the German auto industry association VDA, shipments declined 13% in April and 25% in May year-over-year, totaling 64,300 vehicles over the two-month period. German Chancellor Friedrich Merz has called on EU leaders to act swiftly, warning that unresolved tariffs pose a threat to core sectors such as automobiles, steel, and pharmaceuticals.

VDA chief Hildegard Mueller’s estimate that German automakers absorbed roughly half a billion euros in extra costs in April alone, following the implementation of the 25% U.S. tariff on car and parts exports.

Apple’s plans to scale up iPhone production in India have hit a roadblock after Foxconn, its key manufacturing partner, recalled hundreds of Chinese engineers and technicians from its southern India plants.

The move, made quietly over the past two months, threatens to slow the transfer of manufacturing expertise and delay workforce training at a time when Apple is trying to shift more production out of China.

According to reports, the recall follows informal pressure from Beijing, where officials have urged limits on technology transfers and equipment exports to India and Southeast Asia. More than 300 Chinese staff have returned so far, and Taiwanese support teams have taken over key roles.

GE Appliances has announced a $490 million investment to move production of its washing machines from China to its Louisville, Kentucky, complex, creating 800 new jobs.

The company plans to transfer production of over 15 washer models—including front-load and combo units—to its Appliance Park facility, which will become its most advanced laundry production hub. Once complete in 2027, the expanded plant will span the equivalent of 33 football fields.

While China-based Haier owns GE Appliances, it has invested $3.5 billion in U.S. manufacturing over the past decade, with a third of that in Louisville.

DHL Express Canada has resumed full operations as of June 30, following the ratification of a new labor contract that ended a lockout and strike involving more than 2,100 workers.

Employees represented by the Unifor union voted 72% in favor of the deal, which includes a 15.75% wage increase, revised owner-operator payments, and pension improvements. The agreement will remain in effect until July 2029.

The strike, which began on June 8, escalated after a new law barred the use of replacement workers, forcing DHL to suspend all Canadian operations on June 20. The company said it will now prioritize delayed deliveries and process customer claims through its standard channels. The labor dispute marked a significant disruption for one of Canada’s key last-mile carriers.

The U.S. Postal Service implemented the second phase of its service standard refinements on July 1, aimed at boosting delivery efficiency and cutting costs. The adjustments expand the reach of two- to four-day delivery windows for First-Class Mail and USPS Ground Advantage, thanks to earlier dispatch times from regional processing centers.

USPS also broadened the geographic area qualifying for “turnaround” mail — items sent and delivered within the same facility area — which will now see two- or three-day delivery standards. This builds on the first phase rolled out in April, which added a day to delivery for mail sent over 50 miles from a processing center and updated mail acceptance times.

U.S. manufacturing showed slight improvement in June, with the Institute for Supply Management’s PMI rising to 49%, up from 48.5% in May. While production climbed into growth territory at 50.3%—its first expansion in five months—and inventory levels also improved, the industry remains in contraction overall.

The gains come amid a temporary pause in Trump administration tariffs, which prompted companies to accelerate imports. But underlying concerns persist. Demand indicators like new and export orders continued to decline, and employment shrank for a fifth straight month.

Drewry’s World Container Index dropped 5.7% to $2,812 per 40-foot container for the week ending July 3, 2025, marking the third consecutive weekly decline. The drop reflects softening demand for U.S.-bound cargo following an earlier import surge triggered by the temporary pause on higher U.S. tariffs.

Freight rates on key Asia–U.S. routes continued to fall. Shanghai–Los Angeles rates slid 15% to $3,180, while Shanghai–New York dropped 11% to $5,070. Despite the weekly declines, both routes remain significantly higher than early May levels—up 17% and 39%, respectively.

On Asia–Europe lanes, Shanghai–Genoa rates fell 9%, while Shanghai–Rotterdam increased 8%. Drewry expects further rate drops in the second half of 2025 as weak demand, excess capacity, and tariff-related uncertainty weigh on the market.

Air freight demand from Asia to North America fell 10.7% year-on-year in May 2025, marking a sharp drop after the U.S. suspended the de minimis trade exemption for goods from China. The route, which accounts for nearly a quarter of global air cargo traffic, was hit hardest as e-commerce volumes collapsed and freighter flights were cancelled.

Despite the regional decline, global air cargo demand grew 2.2% in May, according to the International Air Transport Association (IATA). But the Asia-to-U.S. slowdown reflects a broader dampening effect from U.S. trade policy shifts, compounded by new tariffs under the Trump administration.

A two-day nationwide strike by customs officials in Bangladesh brought operations at the country’s ports, including Chittagong, to a standstill last weekend, dealing a fresh blow to the global fashion supply chain.

The disruption—driven by protests against the government's plan to dissolve the National Board of Revenue—halted container movement at the peak of export season, costing an estimated €200 million per day, according to the Bangladesh Garment Manufacturers and Exporters Association.

With Bangladesh accounting for 8.6% of global ready-made garment trade, industry leaders warn that future strikes could further upend apparel exports.

China has launched its first mixed-mode autonomous railway yard in Yiwu, Zhejiang, aiming to streamline logistics and lower national transport costs. The Suxi terminal, which opened June 27, connects to the Ningbo-Zhoushan Port and has a capacity of 660,000 TEUs.

The yard integrates unmanned gantry cranes, automated storage, and smart transporters alongside manual operations, enabling faster cargo handling. Goods entering the terminal are treated as if they've already reached the seaport, reducing clearance time.

Officials say the hub sets a new standard for rail logistics in China and strengthens sea-rail freight links between inland producers and coastal ports.