Your Executive Director here, back with another update from the ever-exciting world of ocean freight. If there’s one thing we’ve learned, it’s to expect the unexpected! Just when we thought we had a handle on things, the ILWU and USMX threw us a curveball with their tentative agreement. Now, the challenge is getting it finalized. But that’s not the only wave we’re riding…

Tariff Troubles and Sourcing Shifts
The potential for new tariffs is looming large, and it’s got many shippers scrambling to adjust their sourcing strategies. This means we could see a massive reshuffling of cargo origins, and that’s where things get interesting.

Think Ahead!
If you’re considering shifting your sourcing, here are some key questions to ask:

• Where are we going? What are the potential new sourcing locations?
• When are we moving? What’s the timeline for this shift?
• How much are we shifting? What percentage of our volume will be affected?

Once you have these answers, it’s crucial to loop in your service providers. Can they handle the shift? Do they have the capacity and infrastructure in place at the new locations? Remember, poor communication and weak carrier relationships can sink your shipping strategy faster than you can say “port congestion”!

Challenges on the Horizon
Let’s be realistic, folks. Sourcing shifts aren’t always smooth sailing. Here are some potential hurdles to consider:

• Capacity crunches: Carriers might not be able to handle a sudden surge in demand from new locations.
• Infrastructure issues: The new ports or terminals might not be as efficient or well-equipped as your previous ones.
• Relationship roadblocks: Building strong relationships with new carriers takes time and effort.

Don’t Get Caught Off Guard!
Even if some options seem like dead ends, explore them anyway. You need to have answers for your stakeholders and be prepared for every scenario. That’s why we’re working closely with our members, discussing these challenges and helping them prepare for upcoming negotiations.

Timing is Everything
Shifting your sourcing in April? Might not be so bad. But try doing it in the middle of peak season (July/August), and you’ll be facing an uphill battle. Carriers will likely charge a premium for those last-minute shifts, if they can even accommodate them at all. So, spot shippers, beware

In other news, the recent announcement that the U.S. is classifying Costco and OOCL as “Chinese military companies” has sent ripples through the industry. What does this mean for shippers?

Well, the most immediate concern is brand image. This classification could potentially affect your products and your relationship with customers. In the event of a conflict between China and the U.S., the U.S. could block all trade with China, which would affect all carriers. However, both Costco and OOCL have stated that they are in discussions with the government to have this status removed. We’ll keep you updated on any further developments.!

Costco (including OOCL), and the “Chinese Military Company” Conundrum

In other news, the recent announcement that the U.S. is classifying Costco and OOCL as “Chinese military companies” has sent ripples through the industry. What does this mean for shippers?

Well, the most immediate concern is brand image. This classification could potentially affect your products and your relationship with customers. In the event of a conflict between China and the U.S., the U.S. could block all trade with China, which would affect all carriers. However, both Costco and OOCL have stated that they are in discussions with the government to have this status removed. We’ll keep you updated on any further developments.

Craig Akers
Executive Director

About IHSA

Don’t miss out on the significant savings available exclusively to IHA members through your shipper community, the IHSA. From May through April, members save millions on ocean freight costs.

Take advantage of this valuable resource today! Visit the International Housewares Shippers Association website or email team@shippersassociation.org to learn more and start saving.

Member onboarding status for 2025: Open

Onboarding / Timeline

We typically start the onboarding process in November/December for the next shipping season.

• November to December: Setup member profile (shipping information / services)
• November to March: Commit your volume
• Must complete before April: We add your company to ocean freight contracts
• April – May: Make your first booking

FAQ

Q: Do I need a customs broker?

A: Yes, you can continue to use your current Customs Broker. We can also put you in contact with one of our partners.

Q: Who makes my bookings?

A: You can use your current booking agent, or we can put you in contact with an agent.

Q: How much is membership?

A: Nothing, its included with your trade Association membership

Q: How do I ensure participation?

A: Commit early. Order of precedence: We prioritize incumbent members, then new members based on the order we receive their signed agreements. Late agreements could mean lower priority, so don’t delay!