May 2025 Insights
From infrastructure investments to shifting trade policies, May delivered several key developments across the logistics landscape. At MTA, we’re always watching how regulatory, economic, and commercial changes impact the industry. In this month’s update, we highlight a few stories with the potential to impact planning, pricing, and operations. Whether you’re managing air cargo under tighter customs scrutiny or reevaluating your U.S. to China container strategy, staying informed is key to keeping your business strategy agile.
1. Port of Corpus Christi Deepens Gulf Access with $625M Channel Expansion
The Port of Corpus Christi marked a historic milestone in May with the completion of its $625 million Ship Channel Improvement Project—a transformative infrastructure upgrade that deepens the channel from 47 to 54 feet and widens it from 400 to 530 feet. This makes it the deepest and widest ship channel in the Gulf of America, positioning the port to handle larger vessels with greater efficiency and safety.
Primarily serving the U.S. energy export market, the port now supports over 2.4 million barrels of crude oil exports per day, representing 60% of the nation’s total. With the expanded channel, the port can accommodate Very Large Crude Carriers (VLCCs) and other large tonnage ships that previously required offshore lightering operations.
For logistics professionals, the implications are significant. Increased draft clearance and navigational space mean faster port calls, reduced demurrage risk, and the potential for new routing opportunities tied to Gulf exports. The project also underscores the growing importance of U.S. port modernization efforts as global freight patterns shift and energy flows evolve.
Transportation Takeaways:
- Corpus Christi now offers the deepest draft on the Gulf, enabling direct access for VLCCs.
- Infrastructure upgrade may reduce vessel wait times and improve export capacity.
- Shippers focused on energy, chemicals, and project cargo should monitor new port capabilities.
Learn more about the Port of Corpus Christi’s expansion here.
2. Tariff and De Minimis Changes Disrupt Air Cargo Flows
As U.S. policymakers move toward revising de minimis thresholds, which currently allow duty-free imports of goods valued under $800, the ripple effects are already being felt in the air cargo market. Retailers and freight forwarders are reevaluating their shipping methods and cargo bundling strategies in anticipation of new import taxes on low-value e-commerce shipments, especially those coming from China.
This regulatory uncertainty is causing air cargo freight providers to adjust capacity. Some are shifting flights to regions less impacted by the rules, while others are tightening their acceptance policies for parcels deemed at risk for non-compliance. For e-commerce shippers, especially SMEs relying on just-in-time restocking models, the disruption could translate into increased costs and more complex customs clearance processes.
While the full policy details are still unfolding, logistics operators must prepare now. Reviewing service lanes, consulting with customs brokers, and rethinking packaging or consolidation methods will be key steps to maintain efficiency and avoid costly delays or penalties. If you’re in need of a partner to help you determine the best strategy to adapt, contact the team at MTA.
Transportation Takeaways:
- Changes to de minimis laws could increase duties on low-value air imports.
- Air cargo carriers are realigning capacity in response to shifting parcel trends.
- Shippers should re-evaluate customs strategies and volume bundling practices.
Read the full story HERE.
3. National Security Probe Targets Imported Jets and Engines
The U.S. Department of Commerce has launched a Section 232 investigation into the national security risks of importing commercial aircraft, jet engines, and related parts. This move, initiated under the same statute previously used to impose steel and aluminum tariffs, raises the possibility of future duties or restrictions targeting the aerospace sector.
Though primarily a concern for aviation manufacturers and commercial airlines, the logistics impact could be far-reaching. Aerospace supply chains are among the most globalized and specialized in the world, and many of the components under scrutiny move via air or expedited ocean freight. A disruption in aircraft engine imports, for instance, could affect timelines for aircraft maintenance, production, and even parts distribution.
Logistics professionals supporting the aerospace industry should stay alert to outcomes from this investigation. Any resulting trade restrictions could lead to re-routing, warehousing delays, or supplier shifts, all of which require proactive mitigation planning.
Transportation Takeaways:
- The Section 232 probe could trigger new tariffs on imported aircraft components.
- Aerospace logistics may see delays or cost increases if duties are imposed.
- Firms in the aviation supply chain should monitor developments closely.
Learn more about the Section 232 Investigation at Reuters.
4. China to U.S. Tariff Reprieve Brings Cautious Optimism
Container shipping companies received a temporary reprieve in May, as the U.S. and China agreed to pause certain tariffs that had been straining transpacific trade volumes. This development was welcomed by ocean freight providers, who have been contending with soft demand and overcapacity in the Asia to U.S. trade lane throughout Quarter 1.
However, optimism is tempered. The relief is limited in scope and duration, with no guarantees of long-term tariff rollback. As a result, while there is some potential for a short-term volume rebound, many logistics firms are hedging their strategies by maintaining flexible contracts and capacity buffers in case tariffs return.
For shippers with exposure to China to U.S. trade, this could be a window of opportunity, albeit a narrow one. Now is the time to push volume through the corridor, lock in favorable rates, and prepare contingencies should trade tensions flare again later in the year. If you need assistance in managing your ocean freight shipping, the team at MTA can help.
Transportation Takeaways:
- A temporary tariff pause offers relief to transpacific container shippers.
- Demand recovery is likely short-lived unless further action is taken.
- Shippers should act quickly to optimize freight flows during the reprieve.
Read full coverage of the story HERE.
5. Trump-Era Tariffs Remain in Place After Court Decision
A recent federal trade court ruling has upheld the Trump-era tariffs enacted under the International Emergency Economic Powers Act (IEEPA), rejecting claims that the executive orders exceeded their legal authority. This decision preserves the current tariff regime on hundreds of billions of dollars’ worth of imports, most notably from China.
The decision adds a layer of predictability to the current trade environment but also dashes hopes for near-term tariff relief. Importers of consumer electronics, machinery, auto parts, and raw materials will continue to face elevated duty costs unless further legal or legislative changes occur.
For logistics professionals, this means continued pressure on sourcing strategies, landed costs, and customs compliance. Companies should continue to explore alternative sourcing markets or bonded warehouse solutions to mitigate the impact of these persistent tariffs. To get a better synopsis of the Trump Administration’s Tariff policies read our blog.
Transportation Takeaways:
- IEEPA-based tariffs will remain in effect following the court decision.
- Importers must continue managing elevated duty costs across key categories.
- No near-term tariff relief is expected unless new legislation is introduced.
Learn more about the Federal Court’s decision at NPR.
Conclusion
As we close out May, one thing is clear: logistics continues to be shaped by forces well beyond the warehouse. Regulatory investigations, tariff rulings, and strategic capital investments are converging to redefine expectations across air, ocean, and last-mile freight. The decisions made by regulators, carriers, and shippers alike have the ability to influence the long-term structure of global transportation networks.
At MTA, we help clients navigate this complexity with responsive planning and custom-tailored freight solutions. If you’re reviewing your international shipping strategy, facing customs compliance uncertainty, or planning distribution into rural markets, our team is here to support your next move. Let’s talk about how MTA can help optimize your logistics strategy.
