The E-com Logistics Weekly • Feb 27

Welcome to this week’s edition of E-com Logistics Weekly! Today we are diving deep into two massive macroeconomic shifts shaking up the logistics and retail world: the escalating conflict in the Middle East and a landmark US Supreme Court ruling that has thrown the tariff landscape into absolute chaos. Plus, we’ll cover major moves in AI, marketplace rollouts, and big tech updates.

Let’s dive in.

The Iran War’s Global Supply Chain Shock

The escalating conflict involving Iran is sending shockwaves through the global logistics network, effectively halting movement in one of the world’s most critical maritime choke points.

What’s Happening:

Maritime Gridlock: Oil tanker movement through the Strait of Hormuz has essentially halted. According to shipping data from Clarksons Research, an estimated 3,200 ships (about 4% of global ship tonnage) are currently idle inside the Persian Gulf, with another 500 ships waiting outside ports in the UAE and Oman. Cargo ships are being forced to take the much longer, costlier detour around the southern tip of Africa.
Air Cargo Grounded: The airspace and airports in countries including the UAE, Qatar, Bahrain, Kuwait, Iraq, and Iran have faced closures. This has stranded tens of thousands of people and grounded major air freight operations.

Consequences for E-commerce Sellers & Logistics Providers:

Widespread Shortages & Delays: This is not just an oil crisis. The disruption is severely impacting the flow of computer chips and semiconductors from Asia, and pharmaceuticals from India. As “one car gets derailed, it creates a domino effect,” leading to stalled inventory and manufacturing bottlenecks.
Skyrocketing Freight Costs: With Middle Eastern airline hubs effectively shut down, air freight capacity has plummeted. Sellers should expect steep increases in air cargo rates, driven by surging demand for limited space and new emergency surcharges.

In other words, E-commerce owners need to brace for extended transit times and increased landed costs. If you rely on parts or inventory passing through these routes, we would recommend that you look into diversifying suppliers or expediting orders before capacity gets tighter.

Policy & Trade: Tariffs Redux – The Fall of IEEPA and Rise of Section 122

Last week, we briefly touched on the Supreme Court ruling regarding the IEEPA tariffs. Today, we need to unpack exactly what happened – because it directly affects the bottom line of thousands of US importers.

The Ruling & The “Refund Mess”

On February 20, 2026, the US Supreme Court struck down the Trump administration’s tariffs imposed under the International Emergency Economic Powers Act (IEEPA), ruling the President didn’t have the unilateral authority to impose them.

The Lawsuits: Over 2,000 lawsuits have been filed in the US Court of International Trade. Logistics giant FedEx, along with massive retailers like Costco, are actively suing the US government to recoup billions in paid duties. In turn, customers are now suing FedEx, demanding that if FedEx gets a refund, those savings must be passed down to the shippers and consumers who originally bore the costs.
No Automatic Refunds: At this point of time, it does not seem that there is any magic button to get your money back. E-commerce owners must actively work with trade attorneys to suspend the “liquidation” of their customs entries and preserve their refund eligibility before time runs out.

The Replacement: Section 122 Tariffs

Within hours of the Supreme Court loss, the Trump administration invoked Section 122 of the Trade Act of 1974 to impose a new emergency tariff.

What it entails: Section 122 introduces a global import surcharge applied broadly to almost all countries, rather than targeting specific nations like China. While initially announced on February 20 as a 10% surcharge, the administration swiftly stated it might increase it to 15% (the statutory maximum) just days later, however the current surcharge is still at 10%.
The Timeline: It went into effect on February 24, 2026, and is strictly capped at a 150-day duration (expiring July 24, 2026) unless extended by Congress. It acts as a stopgap measure while the administration investigates new, permanent tariffs under different statutory authorities.

In other words, importers face an immediate, unavoidable 10% margin hit on globally sourced goods. Since Section 122 cannot be country-specific, moving your manufacturing from China to Vietnam or Mexico will not save you from this specific surcharge. Sellers should review their supply agreements, adjust pricing strategies, and audit their HTS (Harmonized Tariff Schedule) classifications.

Tech & AI: The Pentagon’s Pivot and Big Tech Moves

Anthropic Out, OpenAI In: The US government banned the use of Anthropic (Claude) after the company refused to loosen its ethical guidelines regarding mass surveillance and autonomous lethal weapons. Within hours, OpenAI signed a deal with the Pentagon to supply AI for classified military networks, despite protests from nearly 500 Google and OpenAI employees. Sam Altman claims the deal still prohibits autonomous killing and surveillance.
Meta Rents Google’s Brains: In a bid to diversify away from Nvidia’s GPU dominance, Meta has signed a multi-billion-dollar deal to rent Google’s AI chips (TPUs) to train its next generation of AI models.
Thinking Machines Lab Bleeds Talent: Mira Murati’s highly anticipated new AI startup, Thinking Machines Lab, just quietly lost two of its founding members to Meta.

E-Commerce & Retail Updates

Zalando Expands “Pre-Owned” to Kids: The German fashion marketplace is leaning heavily into the circular economy, expanding its pre-owned category to include children’s fashion across 14 European markets. Parents can trade in gently used brand-name clothes for gift vouchers, removing the friction from second-hand selling.
Reddit Tests In-Search Shopping: Now this news is a few weeks old, but we think it has gone under the majority of people’s noses, including ours, so here it is: Reddit is leaning into its high-intent user base by testing a new native shopping product experience directly within its search function, potentially unlocking a massive new acquisition channel for DTC brands.
Shopify Stands Firm on Checkout: Shopify made it clear that while AI shopping assistants are the future, they will not be allowed to bypass Shopify’s native checkout ecosystem, protecting its core revenue engine.
eBay Trims Down: eBay announced a round of layoffs impacting roughly 800 roles as the legacy marketplace continues to restructure its operations.
Amazon Expands in India: Highlighting India’s growing importance in the supply chain and tech spheres, Amazon just opened its second-largest Asia office in Bengaluru.
Wishlink Secures $17.5M: The creator commerce platform raised fresh capital to continue building out tools that bridge the gap between social media influencers and e-commerce transactions. We will delve more into this topic at a later date.
Regulatory Headwinds: Poland’s ruling party is pushing to ban social media for children under 15.

Stay nimble. See you all next week.

Note: This information is intended to inform Hermeslines clients and partners about industry developments, including decisions of courts and administrative bodies. Nothing in this update should be construed as legal advice, a legal opinion, or customs consulting. Readers should not act upon the information contained in this alert without seeking the advice of a licensed customs broker or legal counsel. Views expressed are those of the author(s) and do not necessarily reflect the official policy of Hermeslines or its clients. Prior results do not guarantee a similar outcome. Hermeslines does not claim ownership of the original reporting; please refer to the linked sources for full articles and original attribution. This content is intended for commentary, news reporting, and educational purposes under the Fair Use provisions of Section 107 of the Copyright Act 1976. This article is for informational purposes and does not constitute legal or customs advice.