The Lunar New Year is just weeks away, and the scramble to get your goods on the water before the month-long break is on! The Supreme Court is due to announce a decision on the legality of the IEEPA & Reciprocal Tariffs, and the weather is wreaking havoc around the United States. Let’s dive in and see what’s happening this month in February’s State of Freight!
Chinese New Year is Upon Us
The Lunar New Year in China begins on February 17. This is a 16-day celebration that closes most of China and Hong Kong until the final celebration, the Lantern Festival, on March 3. Most manufacturing factories are beginning their shutdown this week. Although not as hectic this year, due to many US importers planning and shipping early, vessel space prior to the CNY holiday is starting to get hard to come by. If you have not secured vessel space for your China goods yet, now is the time to act and book that space. Even if you have a vessel secured, vessels and/or schedules are subject to change during this time of year as shipping routes change, and ports are skipped (blank/void sailings & rolling schedules). These occur at this time of year to avoid port congestion, avoid weather issues, and manage vessel capacity. GPI has already experienced some blank sailings and rolling schedules in the past month.
The Supreme Court, IEEPA & Reciprocal Tariffs
The Supreme Court is expected to come to a final decision regarding the validity of President Trump’s IEEPA & Reciprocal Tariffs this month. There is currently a 10% IEEPA Fentanyl tariff and a 10% IEEPA Reciprocal Country tariff on all Chinese imports entering the United States. That is 20% in addition to any other tariffs or duties on your imported goods. We should find out on February 20th what the Supreme Court’s final decision is. If the tariffs are deemed illegal and refundable (they could be considered illegal but not refundable), only the Importer of Record can request a refund. Refunds will be issued on a case-by-case basis, which is expected to take some time. If you are the importer of record, refunds will only be received via an ACH payment through the ACE (Automated Commercial Environment) Portal. Paper checks are no longer being issued. The deadline to be eligible to receive ACH payments through ACE is February 6, 2026. Gaining access to the ACE Portal is a lengthy process when done by email, so if you do not have access yet, you will need to call for a speedier turnaround time. You can get more information about the ACE Portal at https://www.cbp.gov/trade/automated.
Far East Ports
Shenzhen/Yantian, China, and Hong Kong ports are busy but moving along. As mentioned above, we have experienced some rolling schedules and blank sailings, but nothing concerning and exports are flowing out of these ports at a steady pace. If you are shipping out of Singapore, they have been experiencing high congestion, and Shanghai has had weather delays in the past week.
US Ocean Ports
Despite the wild weather in the United States last and this week, dwell times are low for all US Ocean ports. Houston and the Florida Gulf ports are experiencing slight delays upon arrival due to weather conditions, but it is a surprisingly smooth start for February imports. Freight rates remain low this month due to less-than-expected volumes. Peak Season Surcharges have been cancelled.
US Rail
The US Rail system is experiencing winter weather delays and congestion as expected. Most container rail terminals are seeing 5 – 7-day delays before goods can be loaded and on the move. The rail system is frequently congested, and you should always plan for a delay if the rail is in your ship plan.
On February 2, the groundhog saw its shadow, bringing 6 more weeks of winter to the US. If those predictions are correct, we can expect more snow and ice in the forecast. The weather is not affecting the ocean ports as much as the truckers on the road. As storms roll through your areas, the last leg of your import’s journey could be a rough ride. Expect delivery delays due to winter weather throughout the month of February.
