Universal Attends 2025 CTN Conference in Dallas – Honoured as Top Contributor
The 2025 Certified Transportation Network (CTN) conference took us to the city of Dallas in the Lonestar state of Texas. Representing Universal at the event were Mark Glionna, Vice President – Client Relations & Business Development; Paul Glionna, Vice President – Systems Development & Operations; Debbie McGuire, Director – Freight Solutions and David Lychek, Director – Ocean & Air Services.
Over the course of the conference, our team engaged with more than 40 international logistics partners. With global supply chains continuing to feel the ripple effects of US tariff policies, the event provided a timely opportunity to share insights and explore new solutions. “With many clients exploring alternative markets, these meetings give us a valuable perspective on global trends and help us offer informed guidance,” said Mark Glionna. “Our close collaboration with international partners allows us to bring those insights directly to our clients.”
A highlight of the event was Universal being recognized as CTN’s Top Contributor, a testament to the company’s ongoing commitment to partnership, innovation and service excellence. “Thanks to the strong relationships we’ve built through CTN, we’re able to react swiftly to disruptions in the market,” added Paul Glionna. “That flexibility helps us keep our clients’ freight moving, even in uncertain times.”
If you have questions about your international freight strategy or are looking for new logistics solutions, reach out to Mark Glionna and get Universal’s Freight Solutions team working for you.
Your Trusted Partner for Cross-Border Truck Freight
Are you seeking a reliable solution to streamline your cross-border shipping? Universal Logistics delivers customized truck freight services that simplify transport between Canada and the U.S.. From full truckload (FTL) to less-than-truckload (LTL), our experienced team handles every detail—including customs clearance—to ensure your cargo arrives safely and on schedule.
Whether you’re shipping daily or occasionally, we offer flexible options backed by over 75 years of logistics expertise. Our seamless coordination and personalized service mean fewer delays, better cost control, and peace of mind for your business.
Ready to optimize your cross-border shipping? Contact us for a tailored quote today.
Impact of US Tariffs on Ocean & Air Freight Markets
Ocean Freight
The ocean freight market for US-bound cargo is undergoing a dramatic “whipsaw” shift, reminiscent of the early COVID-19 disruptions. When U.S. President Donald Trump announced sweeping tariffs on Chinese imports earlier this year, companies across a myriad of business sectors swiftly issued stop orders to their overseas suppliers, halting a significant volume of ocean shipping. In response, ocean carriers began blanking sailings – either skipping scheduled departures or suspending lanes entirely – due to underutilized vessels.
Following the President’s announcement of a 90-day pause on further reciprocal tariffs (effective mid-May), companies quickly lifted those holds, prompting a sudden and overwhelming surge of cargo to U.S. ports. Ocean carriers, caught off guard, scrambled to reinstate previously idled vessels to meet demand. This mismatch between space and volume led to sharp fluctuations in spot rates. However, there are signs that the cargo surge may be easing. With more vessels back in rotation, capacity on Asia – U.S. routes has improved. The container spot rate spike may prove short-lived, as freight forwarders anticipate a decline in volume by mid-summer due to extensive frontloading earlier in the year and the impending August 14 expiration of the tariff pause.
While the summary above highlights the impact on the U.S. market, Canadian shippers are also affected. Since cargo destined for North America moves on shared vessels, Canadian businesses are likewise exposed to space constraints and rate volatility.
Air Freight
The May 2 elimination of the U.S. duty-free exemption for low-value shipments from China under so-called “De Minimis” rules has led to a drop in air cargo demand on the Trans-Pacific lane. Previously, goods valued at $800 dollars or less and shipped to individuals were exempt from duty and detailed documentation for customs clearance.
This rule enticed online retailers to fulfill orders from the factory and send directly to consumer residences.
Over the past few years, airlines have prioritized surging e-commerce shipments on Trans-Pacific and Asia-Europe routes, at the expense of general air freight. Air cargo posted a record 2024, that saw 12% growth in global volume, with much of the demand generated by e-commerce.
While the full effect of the elimination of the exemption remains to be seen, China to U.S. e-commerce shipments alone account for about half of the cargo capacity on this eastbound corridor, and around 6% of global air freight demand. A disruption to this demand will free up a significant part of this corridor’s cargo capacity and spread its impact to the rest of the market.
Finally, another point to address is the fact that overseas shippers, utilizing both ocean and air modes, are starting to shows signs of frustration with the volatile U.S. position on tariffs and are now looking at alternative markets. While the U.S. has been the traditional market for such exporters, given the uncertainty with the existing government mandate on trade, they are left with no choice but to look elsewhere for business opportunities, which experts predict will disrupt long standing trade partnerships and traditional cargo lanes.
For more information, contact David Lychek, Director – Ocean & Air Services, or Cathy Fong, Director – Freight Pricing.
U.S. 50% tariffs on imports of steel and aluminum – Updated Guidance and additions to steel derivative list
US President Donald Trump signed an order doubling the Section 232 tariffs on steel and aluminium imports from 25 percent to 50 percent effective 12:01am EDT June 4, 2025 under Proclamation “Adjusting Imports of Aluminum and Steel into the United States”.
- Imports of UK origin aluminum and steel continue to be subject to 25 percent tariffs under the US-UK Economic Prosperity Deal of May 8, 2025 (EPD).
- The value of the steel and/or aluminum that originates from the United States will not be subject to the Section 232 duties. The non-US origin steel and/or aluminum content will be subject to 50 percent tariff, while the remaining value of the non-steel and/or aluminum components will be subject to the country of origin’s Reciprocal Tariff rate currently in effect.
US Customs and Border Protection (CBP) have issued Updated Guidance via the Cargo Systems Messaging Service to outline the changes to the HS classifications and reporting requirements:
CSMS # 65289012 – UPDATED GUIDANCE: Import Duties on Imports of Steel and Steel Derivative Products
Where “Derivative Products” were previously subject to the additional tariff on the full value of the goods, under the Updated Guidance, the tariff is only applicable to the steel and/or aluminum content value, as identified in the following revised Derivative Products lists:
Effective 12:01am EDT on June 23, 2025 the following additions to the Steel Derivative list took effect:
- combined refrigerator-freezers under HTSUS 8418.10.00
- small and large dryers under HTSUS 8451.21.00 and 8451.29.00
- washing machines under HTSUS 8450.11.00 and 8450.20.00
- dishwashers under HTSUS 8422.11.00
- chest and upright freezers under HTSUS 8418.30.00 and 8418.40.00
- cooking stoves, ranges, and ovens under HTSUS 8516.60.40
- food waste disposals under HTSUS 8509.80.20
- welded wire rack under HTSUS 9403.99.9020
- All other tariff codes for steel and steel derivative products remain unchanged.
- BIS notes that the aluminum content of products classified under HTSUS 9403.99.9020 also continues to be subject to the Section 232 tariff on imports of aluminum.
Importers should ensure Derivative Products indicate the applicable steel and/or aluminum content values on documentation in order to ensure tariffs are applied correctly.
Application of Reciprocal Tariffs
- Previously, goods subject to the Steel and Aluminum tariff (Section 232) were exempt from the Reciprocal Tariff (IEEPA).
- As of June 4, 2025, the non-steel and/or aluminum content of an article is now subject to the Reciprocal Tariff, and the steel and/or aluminum content is subject to Section 232 duties.
- Where no breakdown of the steel and/or aluminum content is provided, the 50 percent tariff will apply to the full value of the Derivative Product goods.
Reporting Instructions for Duties Based on Aluminum Content
For new aluminum derivatives outside of Chapter 76 subject to Section 232 aluminum duties, and all aluminum and aluminum derivative articles classified in Chapter 76 subject to Section 232 duties, the 50 percent duty (25 percent duty for products of the UK) is to be reported with the Chapter 99 classification based upon the value of the aluminum content.
If the value of the aluminum content is the same as the entered value or is unknown, the duty must be reported under the Chapter 99 classification based on the entire entered value, and reported on only one entry summary line.
Where the value of the aluminum content is less than the total entered value of the imported article, the good must be reported on two lines. The first line will represent the non-aluminum content while the second line will represent the aluminum content. Each line should be reported in accordance with the below instructions.
Non-Aluminum content, first line:
- Ch 1-97 HTS, this same HTS must be reported on both lines.
- Country of origin, same must be reported on both lines.
- Total entered value of the article less the value of aluminum content.
- Report the total quantity of the imported goods.
- Report all other applicable duties, such as IEEPA tariffs and antidumping and countervailing duties.
Aluminum content, second line:
- Same Ch. 1-97 HTS reported on the first line.
- Same country of origin reported on the first line.
- Report 0 for quantity for the Ch. 1- 97 HTS.
- Report the value of aluminum content.
- Report the Section 232 duties based on the value of aluminum content with the Chapter 99 HTS.
- Report a second quantity (of the aluminum content) in kilograms with the Chapter 99 HTS.
- Report all other applicable duties, such as IEEPA tariffs and antidumping and countervailing duties.
Reporting Instructions for Duties Based on Steel Content
For new steel derivatives outside of Chapter 73 subject to Section 232 steel duties, and all steel and steel derivative articles classified in Chapter 73 subject to Section 232 duties, the 50 percent duty (25 percent duty for products of the UK) is to be reported with the Chapter 99 classification based upon the value of the steel content.
If the value of the steel content is the same as the entered value or is unknown, the duty must be reported under the Chapter 99 classification based on the entire entered value, and report on only one entry summary line.
In the case where the value of the steel content is less than the entered value of the imported article, the good must be reported on two lines. The first line will represent the non-steel content while the second line will represent the steel content. Each line should be reported in accordance with the below instructions.
Non-Steel content, first line:
- Ch 1-97 HTS, this same HTS must be reported on both lines.
- Country of origin, same must be reported on both lines.
- Total entered value of the article less the value of steel content.
- Report the total quantity of the imported goods.
- Report all other applicable duties, such as IEEPA tariffs and antidumping and countervailing duties.
Steel content, second line:
- Same Ch. 1-97 HTS reported on the first line.
- Same country of origin reported on the first line.
- Report 0 for quantity for the Ch. 1- 97 HTS.
- Report the value of steel content.
- Report the Section 232 duties based on the value of steel content with the Chapter 99 HTS.
- Report a second quantity (of the steel content) in kilograms with the Chapter 99 HTS.
- Report all other applicable duties, such as IEEPA tariffs and antidumping and countervailing duties.
Melt and Pour Reporting Requirements
The reporting of the country of melt and pour and applicability code is mandatory for both steel and steel derivatives. To report the country of melt and pour, importers must report the International Organization for Standardization (ISO) code on steel articles and derivative steel articles subject to Section 232. For steel articles, importers must report the ISO code where the steel was originally melted and poured. For steel derivatives, importers must report the ISO code where the steel was originally melted or “OTH” (for other countries). For products melted and poured in the United States, importers must indicate “US” as the country of melt and pour.
Exclusions and Drawback
Importer-specific product exclusions for Section 232 duties that are active in the Automated Commercial Environment (ACE) shall remain effective until their expiration date or until excluded product volume is imported, whichever occurs first.
No drawback shall be available with respect to the duties imposed.
For more information, contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.
Global Spotlight Quiz
Name the city that features a tower with spectacular views
- Hosts a world famous International Film Festival every October, showcasing movies from all over the world.
- For those who love to shop, this city features the largest Department Store in the world.
- Largest port in the country – the shipping and fishing industries are vital parts of the city’s economy.
- The high quality sandy beaches and beautiful seaside scenery on the winding coastline are big tourist attractions.
Answer: Busan, South Korea
For more information about shipping freight to or from this city, contact Debbie McGuire, Director – Freight Solutions.
Quick Tip
How cultural differences affect international business transactions
CREEEPSS is an acronym that stands for Culture, Religion, Education, Economics, Environment, Politics, Social and Special Characteristics. All of these points factor in to how business is done internationally. For example, you should know:
- In Italy, production facilities often close down for the entire month of August
- In Hong Kong, it is very common to work on Saturdays
- Chinese New Year is observed in February or March
- U.S. Independence Day falls on July 4th, while Canada Day is celebrated on July 1st
- Canadian Thanksgiving is celebrated in October; in the U.S. it is celebrated in November
At Your Service
Irina Moskvitina
Team Leader - Freight Pricing
Irina Moskvitina joined Universal’s Freight Pricing team in 2014, handling air and ocean freight rate inquiries from our clients and overseas agents.
As a result of Irina’s dedication to her work and presentation of leadership skills, she was promoted to Team Leader – Freight Pricing in August 2018.
In her role, Irina works closely with all Freight Pricing team members, overseeing the day to day operations, ensuring reliable service and securing competitive rates.
One of Irina’s main responsibilities is to provide solutions for moving our clients’ freight in the most reliable and cost effective way.
Irina can be reached by phone (905) 882-4880 ext. 1205 or by email.
Team Leader - Freight Pricing
SMART Logistics
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Route is produced by Universal Logistics. Editor: Bettina Scharnberg. Email: bscharnberg@universallogistics.ca While every effort has been made to ensure the accuracy of information contained herein, Universal Logistics accepts no responsibility or liability for errors or omissions. Written correspondence should be forwarded to:
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