The Germany-based international logistics company DHL is set to suspend all shipments of items worth more than $800 to private individuals in the US.
The pause will take effect immediately, and it is a temporary measure. The company says it “will share updates as the situation evolves.”
The decision comes as a result of the trade wars started by the US in recent weeks.
What Does the Pause Mean for Your Business?
More specifically, the reason that DHL cited in its statement about the pause was a change to US customs. The threshold for import procedures has been lowered from $2,500 to $800, requiring a large increase in customs clearance costs for all packages that fall between those two price valuations.
B2B shipments will continue, according to a Transport Topics report, alongside shipments sent from businesses to private individuals that are valued at less than $800.
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Your business will likely be unaffected, assuming you aren’t a dropshipper without the proper paperwork to qualify as a business buyer.
Big Logistics Companies Are Grappling With Change
DHL is a massive name in logistics — it has north of 500,000 employees worldwide and delivers over 1.7 billion packages per year — so even a temporary pause on shipping to the US is big news.
Businesses small and large are still trying to come to terms with the new tariffs and customs process changes, particularly since so many of them are being adjusted in response to other countries’ own retaliatory tariffs. Some businesses are simply waiting to see if any changes are reversed, while others are pulling forward inventory to buy themselves more time. The long-term impact of the new taxes will still take several months to be revealed.
Air Cargo Set to Lose $22 Billion
Just how large of an impact will the new taxes have on the logistics industry? Air cargo alone may lose more than $22 billion in revenues across three years, according to a new analysis.
“The Cirrus Global Advisors model shows the airfreight industry revenue could contract $22 billion if the White House maintains tariffs at 125% for a substantial period of time, based on assumptions about lower consumer demand, excess airline capacity and downward pressure on yields,” sums up FreightWaves in a new article that draws on insights from the Seattle-based consultancy Cirrus Global Advisors.
Since that 125% tariff increase was cited, the White House has clarified that the increase includes a previous tariff and is actually 145% in total. Regardless, it’s a clear indicator that the total losses to business operations will easily number among the billions.
