🌎 Global Logistics Watch – September 2025

The summer lull is over. Peak season is here, and September will set the tone for Q4.

August gave us a preview of what’s coming: tariff shocks, sliding freight rates, and carriers preparing to flex their peak pricing power. But September is when these developments start affecting day-to-day operations for retailers, importers, and logistics teams.

Here’s the recap from August—and more importantly, what to expect this month.

August Recap: Calm Before the Storm

Tariffs reshaped the conversation

• On Aug 25, the US threatened 200% tariffs on Chinese rare-earth magnets. Why does this matter? These magnets are critical inputs for semiconductors, EV batteries, aerospace, and even medical devices. If duties are enforced, production costs in multiple industries could skyrocket overnight.
• On Aug 27, India became subject to a 25% blanket tariff. Combined with earlier penalties, this pushed some goods to an effective 50% duty rate. Importers with sourcing exposure in India are already reviewing supply chains.
• On Aug 21, the US–EU framework deal set a tariff ceiling of 15% on most EU goods, while granting US exporters wider access for seafood and agriculture. For transatlantic shippers, this adds stability—but also complexity with reciprocal tariffs.

Ocean freight stayed soft, but carriers are moving pieces

• Drewry’s World Container Index dropped 6% to $2,119/40-ft by late August, marking 11 straight weeks of declines.
• Why? Too much capacity chasing too little cargo. Demand didn’t rise enough post-summer, leaving carriers with oversupplied lanes.
• To fight back, carriers scheduled blank sailings (skipping voyages to artificially tighten supply). If they stick, September could mark the end of the rate slide.

Parcels showed us what’s coming

Back-to-school shopping pushed parcel volumes higher in August. The clear lesson: communication beats raw speed. Retailers that sent proactive delivery updates saw smoother operations, while those that relied only on “fast shipping” dealt with spikes in WISMO (“Where is my order?”) calls.

September’s Critical Battlegrounds

1. Trade & Tariffs – The Wildcard Factor

Tariff negotiations rarely move in a straight line. With the US–China truce expiring Nov 10, September is the month both sides may signal their intentions.

Key watchpoints:

• Will the rare-earth tariff threat turn into actual policy?
• How will India’s blanket tariffs ripple into Asian supply chains (especially apparel and textiles)?
• Will the EU framework stabilize transatlantic trade, or spark retaliation in other categories?

Why it matters: Shifts announced in September could instantly raise landed costs for Q4 shipments already in transit.

2. Ocean Freight – Testing Rate Stabilization

Carriers announced GRIs of $800–900/FEU effective Sept 1, but rates will only hold if blank sailings reduce supply as planned.

• If blank sailings succeed: rates may stabilize, ending the summer’s freefall.
• If not: shippers will continue to enjoy a soft market with negotiating leverage.

Tip for shippers: Early September is the sweet spot to lock in favorable contracts. By mid-month, Peak Season Surcharges (PSS) could narrow that window.

3. Peak Season Reality Check

September isn’t just another month—it’s the stress test for Q4.

• Labor Day weekend demand will show where logistics networks bend.
• UPS and FedEx surcharges officially begin mid-September, raising domestic parcel costs.
• Consumer expectations have shifted:

Retailers that fail to communicate now risk paying the price in October when peak demand surges.

Action Plan for September

• Procurement : Monitor tariffs daily. A single announcement can upend landed cost assumptions.
• Ocean shippers: Use early September oversupply to negotiate. Don’t wait for mid-month PSS.
• Retail/eCommerce brands: Treat Labor Day as your trial run. Fix weak links now before Black Friday.
• Make communication part of your logistics strategy. Transparency today prevents escalations tomorrow.

The companies that win this peak season won’t just be the fastest or cheapest—they’ll be the ones that anticipate disruptions, plan ahead, and set clear expectations with customers.

September is the last real chance to get ahead of the chaos. Use it wisely.