The logistics industry faced a transformative year in 2024, shaped by regulatory shifts, economic pressures, and evolving trade routes. Edward J. Zarach & Associates helped clients navigate these complexities, ensuring compliance and efficiency across their supply chains. As we look ahead to 2025, understanding 2024’s trends will be key to preparing for what’s next.
UFLPA and Supply Chain Transparency
The Uyghur Forced Labor Prevention Act (UFLPA) had a significant impact in 2024. With the addition of new entities to the UFLPA Entity List, businesses faced stricter enforcement against goods tied to forced labor in China’s Xinjiang region. And China is NOT the only country on the list. U.S. Customs and Border Protection issued a Finding against Kingtom Aluminio S.R.L., the first Chinese-owned entity in the Dominican Republic, based on information that reasonably indicates the use of forced labor in violation of 19 U.S.C. § 1307 in the production of that merchandise. CBP identified them following International Labour Organization forced labor indicators during its investigation of Kingtom Aluminio S.R.L.: abuse of vulnerability, intimidation and threats, deception, withholding of wages, physical and sexual violence, restriction of movement, and excessive overtime.
As investigations expand, so does an industry-wide push for transparency, requiring importers to closely monitor sourcing and rigorously vet supply chains. Zarach’s expertise in customs brokerage played a crucial role in helping clients meet compliance requirements and maintain smooth import processes.
De Minimis Changes
Another major development was regulatory changes to de minimis thresholds in key global markets. Governments lowered these thresholds to protect domestic industries, but the change introduced new costs and complexities for e-commerce businesses. Zarach supported clients by streamlining customs processes and minimizing disruptions to cross-border operations.
Economic Pressures
Volatile fuel prices, inflation, and fluctuating freight rates added to 2024’s challenges. Shippers benefited from lower spot rates, but carriers faced shrinking profit margins. Despite these economic pressures, the logistics industry showed resilience, driven by the sustained growth of e-commerce and a robust holiday season.
Preparing for 2025
Tariffs remain a critical factor as we look ahead to next year. Potential changes in trade policies could increase importers’ costs, while geopolitical shifts may alter trade routes. The possible reopening of the Suez Canal for cargo traffic could further reshape global logistics, offering opportunities and introducing new capacity challenges. Sustainability and technological advancements, including digitization and automation, will continue to shape the industry, driving innovation in greener and more efficient logistics solutions.
Zarach is committed to helping clients adapt to these changes with tailored strategies and consultative services, ensuring success in a dynamic trade environment. Contact Edward J. Zarach & Associates today for tailored strategies for navigating tariffs and regulatory changes and optimizing your global supply chain in 2025 and beyond.