US Government Shutdown: What Logistics Service Professionals Need to Know

What happened and when

Status: The US federal government entered a funding lapse starting Wed, Oct 1, 2025. Courts are using non-appropriated funds to remain open through at least Fri, Oct 17, while many agencies have activated shutdown plans.

What keeps moving vs what slows

Function	Operating status today	What LSPs should expect
CBP cargo processing and tariff collection	Continues as excepted activity	Ports and borders remain open. Duties and fees keep flowing. Back office items like refunds, audits, and some rulings can lag, so pad clearance timelines.
FMC – ocean shipping regulator	Suspended due to shutdown	No new OTI licenses, foreign NVOCC registrations, tariff registrations, or bond rider processing. Enforcement and complaint adjudication paused. Plan around this bottleneck.
FDA – imports and reviews	Core safety screening continues. No acceptance of new user-fee submissions during the lapse	Food and medical shipments still screened. Existing user-fee funded reviews continue, but responses slow. Expect targeted holds to prioritize risk.
USDA APHIS – agricultural inspection	Port inspections continue using user fees	AQI inspections and phyto work proceed, but staffing is tight and non-critical USDA programs are curtailed. Expect uneven service by commodity and port.
TSA screening and FAA air traffic control	Operating with essential staff	Airports stay open. Longer lines and higher delay risk the longer the lapse lasts. Add buffer for tight air connections and handoffs.
FMCSA, FHWA, PHMSA – trucking and hazmat	Core highway safety and enforcement continue. PHMSA prioritizes emergency approvals	Most FMCSA and FHWA work continues via Highway Trust Fund. New non-urgent hazmat approvals can slow. Verify carrier onboarding and filings before promising activation dates.
Federal courts	Open through at least Oct 17 on fee balances	Litigation and appeals windows running for now. Track updates if the lapse persists beyond mid-October.

Immediate actions for LSPs

Pad lead times at gateways. Add 24–72 hours on FDA and USDA-touched entries, especially perishables, pharma, and cosmetics.
Check ocean compliance dependencies. If you are onboarding an NVOCC, changing a tariff registration, or filing a bond rider, expect delay while the FMC is closed.
Protect air cargo handoffs. Warn shippers about airline cutoffs, TSA queues, and ground congestion. Build larger buffers at major hubs.
Verify carrier onboarding timelines. FMCSA systems largely continue, but some filings and state partners may lag. Do not promise same-week activations without checking status.
Watch export control and sanctions workflows. Expect slower processing for most non-emergency licenses. Align customer expectations for controlled exports.

Operational FAQs

Are ports and borders open for cargo
Yes. CBP is processing cargo and collecting duties during the shutdown.

Will FDA and USDA stop clearing food
No. FDA import screening continues and APHIS AQI inspections continue. Routine work is thinner and responses can slow.

Can we file a new NVOCC license or bond rider
Not while the FMC is closed. Plan onboarding and renewals around that.

Will air freight see delays
Risk grows each day as essential TSA and FAA staff work without pay. Build slack into connections and delivery promises.

How long will courts stay open
Through at least Oct 17 using non-appropriated funds. Reassess if the lapse persists.

Critical checks before you promise timelines

Do not assume all PGAs behave the same. APHIS inspections continue on user fees, while many USDA programs are curtailed. Risk is uneven by commodity and port.
Do not treat FMC closure as cosmetic. Licensing, bonds, and OSRA complaint paths are paused. This can block bookings and customer onboarding.
Do not over-promise on FDA interactions. Existing paid reviews can move, but new user-fee submissions are not accepted until funding resumes.

TL;DR

The shutdown that began Oct 1 keeps ports and borders open and duties flowing, but it slows the paperwork that makes logistics work. CBP cargo processing continues, FMC is closed, FDA import screening continues while new fee-bearing submissions are paused, and APHIS inspections proceed under user fees. Air travel functions with essential staff, so expect longer lines and more delays. Add time for PGA interactions, plan around FMC licensing freezes, and verify carrier filings before you promise activation dates.

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References

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