Freight Day! 👋 We’re starting the day with some rare good news on the tariff front. The U.S. and China have agreed to a 90-day pause in their escalating trade war, offering a brief sigh of relief for the freight industry.

Tariffs on Chinese goods will drop from 145% to 30%, while China will reduce its 125% tariffs on American products to 10%, effective Wednesday. More ahead 👇

💬 More in Freight:

⚫️ $3M Scheme To Defraud Amazon Logistics

⚫️ DHL, UPS Making Cuts

⚫️ Linage Acquiring Facilities From Tyson, Building More

$3M Scheme To Defraud Amazon Logistics 🥷

Federal prosecutors have charged a Connecticut man in a multi-year trucking fraud scheme that defrauded Amazon Logistics of more than $3 million.

According to the U.S. Attorney’s Office, between December 2019 and February 2021, the suspect created 23 separate trucking accounts with Amazon — some under his own business, Pak Express Transport LLC, and others using stolen identities and business details from legitimate trucking companies.

Amazon Logistics, a subsidiary of Amazon, contracts with trucking providers to move trailers between warehouses and fulfillment centers nationwide.

Prosecutors say the man used these accounts to accept more than 1,000 transportation assignments. He then manipulated Amazon’s transportation management system to falsely show that trailer moves were completed when they weren’t — submitting fake delivery confirmations and invoices, which Amazon then paid.

A federal grand jury indicted him on 13 counts of wire fraud on May 7. He was arrested the following day and released on a $300,000 bond. Each charge carries a maximum penalty of 20 years in prison. The FBI is investigating the case with assistance from Amazon.

DHL Makes Cuts ✂️

DHL Supply Chain will lay off 346 workers and close its Ontario, California distribution center by the end of August, according to a state notice. Operations will begin winding down on July 1.

The closure comes after an undisclosed customer decided to relocate part of its distribution operations, DHL spokeswoman Marcia McLaughlin confirmed. The facility appears to be an e-commerce fulfillment center, with 222 order picker roles among the cuts.

Meanwhile, UPS plans to close a package facility in Holmen, Wisconsin, on June 10, cutting 42 jobs. The move is part of UPS’s broader effort to streamline operations by consolidating lower-volume sort centers. 

The company aims to shut 164 facilities within 18 months, including 73 by the end of June.

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What Else Is Moving 🚚

Tariff Ceasefire: U.S. and China Hit Pause for 90 Days 🇨🇳🇺🇸

In a rare moment of de-escalation, the U.S. and China have agreed to a 90-day pause on their escalating trade war. After high-stakes talks in Geneva this past weekend, U.S. Treasury Secretary Scott Bessent and U.S. Trade Rep. Jamieson Greer announced that tariffs on Chinese goods will drop from 145% to 30%. In return, China will reduce its blanket 125% tariffs on American products to 10%. The changes kick in Wednesday.

So what’s this mean for freight?

For starters, containerized importers get a temporary sigh of relief. Major retailers like Amazon, Home Depot, and Tractor Supply, already adjusting to inflated landed costs, may see more favorable margins on replenishment cycles. Carriers and NVOs who’ve been watching transpac volumes closely now have a window of opportunity to lock in more stable contract freight and rebuild confidence in U.S.-Asia flows.

But make no mistake: this isn’t a resolution, it’s a pause. A joint statement from the U.S. and China said the move was made in the “spirit of mutual respect,” but insiders aren’t buying the honeymoon narrative. “It’s not a solution,” said Alicia Garcia-Herrero of Natixis. “It’s just a more civilized way to divorce.”

What stays in place?

• Tariffs tied to fentanyl enforcement (20%) remain untouched.
• Chinese tariffs on U.S. ag exports—including soybeans and beef—still stand.
• Non-tariff measures like export restrictions and blacklisted U.S. firms may be paused, but haven’t been fully lifted.

Why now?

Economic strain is mounting on both sides. China’s consumer price index just posted its third straight monthly drop, and U.S. business leaders are sounding alarms about delayed inventory turnarounds and softened demand. Logistics execs say the 145% tariff regime had already started freezing up inventory decisions across retail and manufacturing, especially for goods like home furnishings, electronics, and automotive parts.

Who wins? Both sides, kind of.

Trump claims he forced China to the table. Beijing’s messaging says it’s the reasonable actor trying to avoid global recession. And the freight market? It’s cautiously optimistic, particularly carriers and forwarders banking on late summer restocking.

The bigger picture

This 90-day pause might just be a pressure valve release before another showdown. Talks are ongoing, and there’s chatter of a potential Trump-Xi meeting if progress continues. But the structural trade rift - decoupling, tech sanctions, and security disputes, still looms large. Shippers, carriers, and freight tech players have a 3-month window to recalibrate. Don’t expect this calm to last. But for now, at least, it’s not getting worse.

FREIGHT SNIPPETS ✂️

⚡️ $1B Cold Storage | Lineage Logistics is acquiring four cold-storage warehouses from Tyson Foods for $247 million and plans to invest over $740 million to build two more, bringing the total project close to $1 billion, the company announced last week. The four facilities—located in Kansas, Pennsylvania, Illinois, and Arizona—span 49 million cubic feet. The deal is expected to close this quarter, with Lineage onboarding over 1,000 Tyson employees. The sites will become multi-client facilities once the new builds are complete in 2027–2028. Read more.

⛳️ Fore! | A truck driver is facing charges after driving a semi through the back nine of Northstar Golf Club near Columbus, Ohio, damaging the course and destroying a bridge. Police say Gurpreet Dhaliwal claimed he was lost but gave no clear reason for being on the course. The truck had no plates and was linked to a previous crash. Officers also found unidentified pills in the cab. Dhaliwal was charged with felony vandalism, DUI, and commercial vehicle violations. He was released on a $500 bond and is due in court May 16. Read more.

🔋 Budget Proposal | The White House’s 2026 budget proposal includes nearly $27 billion for the Department of Transportation, with increased funding for port infrastructure and state freight grants. FAA air traffic control upgrades are also prioritized. At the same time, the plan seeks to roll back Biden-era climate initiatives—cutting $6 billion for EV chargers and ending subsidies for EV and battery makers, citing slow progress and regulatory hurdles. Read more.

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💰 AI Shipping Solutions | Orca AI, a maritime tech company specializing in autonomous vessel navigation, has raised $72.5 million in Series B funding. The round was led by Brighton Park Capital, with continued support from Ankona Capital and Hyperlink Ventures. The new funding will help Orca AI expand its autonomous platform, add new features, and move into sectors like defense and security. The company aims to solidify its leadership in autonomous shipping. With this latest round, Orca AI has now raised a total of $111 million, including earlier investments from OCV Partners and Mizmaa Ventures. Read more.

📊 Steady Q1 Earnings | Hub Group held earnings steady in Q1 2025, reporting $27.2M in net income, nearly flat from a year ago, despite an 8% revenue decline to $915.2M. The drop was driven by lower intermodal and brokerage rates, reduced fuel surcharges, and softer logistics activity. Cost-cutting helped offset the decline, with transportation and warehousing expenses down 11%, though salaries rose 3%. Operating margin improved to 4.1%, up 40 basis points year-over-year. Read more.

🚨 Freight Forwarder Acquired | Radiant Logistics has acquired Houston-based freight forwarder Universal Logistics Inc., which specializes in time-sensitive air and ocean freight for the oilfield services and HVAC sectors. Universal has operated under the Airgroup brand since 2001 and will continue to do so as it transitions to the Radiant brand. Its Houston operations will merge with Radiant’s existing local presence. Read more.

MEME OF THE DAY 😂

📍 Upcoming: I’ll be in Cincinnati this week, from May 12th to 16th—let's catch up if you're around! Also, catch up with us at Home Delivery World in Nashville on May 21st-22nd. If you’ll be there, let us know—we’d love to connect!