We would like to inform you that due to the national state of emergency declared at the southern U.S. border on January 20, 2025, President Trump has issued a series of tariffs on imports from Canada, China, and Mexico. The tariffs on goods from Canada and China will go into effect at 12:01 AM Eastern Time on Tuesday, February 4, 2025. However, the tariffs on Mexican imports have been delayed for one month. There is currently no specific timeline for when these tariffs may be lifted.

Here is an overview of the new tariff measures ordered by President Trump:

1. A 25% tariff (ad valorem rate) on all goods entering the United States from Canada, with the exception of energy resources, which will face a 10% tariff.
2. A 10% tariff (ad valorem rate) on all imports from China.

These tariffs are in addition to existing tariffs and do not apply to goods that were already in transit before 12:01 AM on February 1, 2025. Additionally, the “de minimis” exemption for goods from Canada and China has been revoked.

As for imports from Mexico, a 25% tariff has been delayed for one month following an agreement between the Mexican government and the Trump Administration, in which Mexican troops will assist in curbing illegal immigration at the U.S. border.

We will continue to keep you updated on any new developments. If you have any questions regarding the new tariffs or need assistance determining which products are impacted, please reach out to your logistics advisor.

Closed this Monday, January 20^th

• APM Terminals Elizabeth
• C&C Marsh Street Depot
• East Coast CES
• H & M CES
• Maher Terminals and Maher Terminals Empty Depot (Operated by Columbia)
• Port Liberty Bayonne
• Port Liberty New York
• Port Newark Container Terminal
• Red Hook Container Terminals (Newark & Brooklyn)

We are writing to inform you that an agreement has been reached between key stakeholders in the shipping industry, extending the current contract through January 15, 2025. As a result, all U.S. East and Gulf Coast ports remain operational.

While there has been consensus on wages, several significant topics, including automation, still need to be negotiated. This means that further labor disruptions, such as strikes or slowdowns, could occur if a final agreement is not reached. To avoid potential delays, we recommend placing orders early to minimize any risks should a contract not be in place by January 15, 2025.

Though the recent work stoppage was brief, lasting only three days, it caused considerable congestion. Please be advised that it may take up to a month for the supply chain to stabilize fully. If you’re interested in exploring options to expedite your shipments, please contact your logistics advisor.

Lastly, we encourage all customers to keep track of terminal gate hours and prioritize removing their shipments as early as possible. Some terminals may start calculating demurrage fees as soon as they open.

If you have any questions or concerns, feel free to contact your customer service representative for assistance.

Highlights courtesy of Kenneth Quartarolo, LACBFFA’s Logistics Chair:

• Port of Long Beach Ready:
  • Cordero’s insights were shared on Bloomberg TV. [Watch the full interview here].
     
• Current Port Status:
  • As of early Wednesday, 28 container ships are anchored outside the four largest Atlantic ports and Houston.
  • Additional ships are en route from Asia and Europe, indicating further congestion.
     
• Strike Response and Political Climate:
  • The Biden administration has not intervened yet, with stakeholders adopting a “wait-and-see” approach.
  • Politicians have shown support for dockworkers, urging carriers to withdraw surcharges related to the strike.
     
• Economic Impact:
  • Bloomberg Economics estimates a potential $3 billion per day hit to GDP due to disruptions in spending and production. (Read the full analysis on Bloomberg Terminal).
     
• Supply Chain Adjustments:
  • Alternate Routes: Freight forwarders are prioritizing shipments based on urgency, exploring air cargo and West Coast diversions.
  • Companies Adapting:
    • Mazda: Relying on current U.S. dealership stock; monitoring negotiations.
    • Honda: Prepared by unloading shipments ahead of the strike.
    • Toyota: Watching the situation, no further comments.
    • Nissan: No reported impact yet.

As of 12:00 a.m. on October 1, 2024, a strike has led to a complete shutdown of all U.S. East and Gulf port terminals, resulting in the temporary suspension of pick-up and delivery services at these locations.

The affected ports include:

• New York/New Jersey
• Savannah, GA
• Houston, TX
• Miami, FL
• Boston, MA
• New Orleans, LA
• Charleston, SC
• Baltimore, MD
• Philadelphia, PA
• Wilmington, DE
• Mobile, AL
• Tampa, FL
• Freeport, TX
• Jacksonville, FL

What you need to know:

• All Shipping Operations Are Paused: Cargo movement in and out of these ports is halted, leading to significant disruptions.
• Anticipate Delays: With the closure of these ports, substantial backlogs are expected, even after the resumption of normal operations.
• Ships Remain Offshore: Vessels en route to these ports will be stationed offshore, potentially creating additional congestion once the strike is resolved.
• Broader Supply Chain Impact: This strike extends its effects beyond these ports, impacting the entire logistics network.
• Increased Costs: Expect increased costs related to rerouting, storage, and transportation due to the closures.
• Uncertain Shipping Schedules: Current shipping schedules are on hold, and we are unable to provide precise delivery dates at this time.
• Extended Recovery Period: For every day the strike continues, anticipate approximately one week of recovery to return to normal operations.

We appreciate your understanding and patience as we navigate this situation. For updates or inquiries regarding your shipment details, please feel free to contact us. Further information will be provided as it becomes available.

Additionally, CMA CGM will extend this surcharge to exports leaving these ports, charging up to $2,000 per container. This temporary fee aims to cover additional costs arising from strike-related disruptions or labor unrest.

We will do our best to keep you informed about how this may affect your shipments.

For any questions or concerns, please feel free to reach out to us.

This strike could impact all East Coast and Gulf Coast ports, leading to possible delays and additional costs, such as demurrage, detention, or freight being rerouted to other ports. We are actively communicating with our carriers and will provide updates as the situation develops.

We are also reviewing all shipments currently in transit to these ports and will coordinate with carriers on alternative options if needed.

Thank you for your understanding and continued support.

• Memphis: High winds of up to 25 mph and potential tornadoes are expected on Thursday. Lift operations will be temporarily suspended but are scheduled to resume on Friday.
• Nashville: No significant impact is anticipated; only light rain from the storm’s remnants.
• New Orleans (NOLA): The ports are currently closed.