For the Week of August 31, 2026:
This Week:
- USPS plans a 6% average rate increase for the 2026 peak season
- U.S.-Canada trade tensions create new sourcing risks
- Oil prices ease as some flows return through the Strait of Hormuz
- South Carolina Ports takes the first step toward another channel deepening
- Air cargo demand declines, but rates remain resilient
USPS Plans 6% Peak Season Rate Increase
The U.S. Postal Service is planning an average 6% temporary rate increase across several package shipping services for the 2026 holiday season. Pending regulatory review, the increases will apply to retail and commercial Ground Advantage, Priority Mail, Priority Mail Express, and Parcel Select shipments from October 4 through January 17.
The exact increase will vary by service, package weight, and shipping distance. The peak season adjustment also follows an 8% package price increase implemented earlier this year due to higher fuel costs, adding another consideration for businesses preparing for holiday parcel demand.
JMR Takeaway: Businesses with significant parcel volumes should factor higher seasonal shipping costs into Q4 planning and review service options before peak season begins.
U.S.-Canada Trade Tensions Create Sourcing Risks
The escalating trade dispute between the U.S. and Canada is creating new sourcing and cost concerns across closely connected North American supply chains. After negotiations failed to prevent new U.S. tariffs, Canada responded with retaliatory duties of up to 50% on certain American goods.
Industry groups are warning that the impact could extend across agriculture, forest products, apparel, steel, consumer goods, and food. Because many North American supply chains rely on products and materials moving repeatedly across the border, higher tariffs could affect both sourcing decisions and end costs.
JMR Takeaway: Companies with U.S.-Canada supply chains should review country of origin, sourcing dependencies, and tariff exposure as the trade dispute continues to develop.
Oil Prices Ease as Hormuz Flows Improve
Oil prices moved lower as additional crude volumes made their way through the Strait of Hormuz, providing some relief after months of disruption. Brent and WTI were both on track for weekly declines as traders weighed improving flows against continued uncertainty surrounding U.S.-Iran diplomacy.
Conditions remain far from normal. Commodity vessel transits continue to fluctuate, and Gulf exports remain below pre-war levels. Efforts to restore normal traffic through the Strait are continuing, but geopolitical uncertainty remains a significant factor for global energy and transportation markets.
JMR Takeaway: Improving oil flows could provide some relief for transportation costs, but continued volatility around Hormuz means fuel pricing and global shipping conditions remain difficult to predict.
South Carolina Ports Moves Toward Channel Deepening
South Carolina Ports and the U.S. Army Corps of Engineers have signed a feasibility study agreement to evaluate deepening the channel serving the North Charleston Terminal. The terminal is currently maintained at 48 feet, while other portions of Charleston Harbor have already been deepened to 52 feet.
If completed, the project would allow all of SC Ports’ container terminals to accommodate the largest vessels at any tide. The feasibility study will include engineering, environmental, and economic analysis before the project can move forward.
JMR Takeaway: Continued investment in East Coast port infrastructure could provide shippers with greater vessel access and capacity over the long term as container ships continue to increase in size.
Air Cargo Demand Dips, But Rates Hold Firm
Global air cargo volumes declined in mid-August as the market entered its typical end-of-summer slowdown. Chargeable weight fell 5% week over week, but average worldwide pricing remained nearly unchanged at approximately $2.97 per kilogram.
Tighter capacity and higher fuel costs are helping keep rates resilient despite softer demand. Asia Pacific-to-U.S. volumes fell 4% week over week but remained 14% above last year’s levels, supported in part by continued demand tied to AI supply chains.
JMR Takeaway: Softer demand is not translating directly into lower air freight costs. Capacity, fuel prices, and continued strength on select trade lanes are helping keep rates elevated.
Stay Ahead of Supply Chain Changes
As supply chain conditions continue to evolve, understanding the impact on your operations is critical. For immediate questions or guidance, contact our team.
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