Eastern Shipping Worldwide

The March edition of the President’s Desk Newsletter covers key industry updates, including the ratification of a new six-year contract for US East and Gulf Coast dockworkers and renewed threats from Houthi militants on Red Sea shipping. In Customs Brokerage News, we examine the latest developments in global trade disputes, including the reinstatement of Section 232 tariffs, retaliatory measures from the EU, and new tariffs imposed by Canada and China. Lastly, in Eastern News, we highlight our sponsorship of the Mini Golf Fundraiser at Mount Prospect Public Library, reinforcing our commitment to community engagement.

Eastern Sponsors Mini Golf Fundraiser at Mount Prospect Public Library Eastern is proud to sponsor the Mini Golf Fundraiser hosted by the?Mount Prospect Public Library Foundation (MPPLF). This unique event invites participants to enjoy 18 holes of mini golf throughout the library, complete with a 19th-hole entertainment area. Proceeds support MPPLF’s mission to enhance community learning and cultural enrichment through special library programs and projects. The fundraiser takes place on?Saturday, March 15, 2025, from?10 a.m. to 3 p.m.?at the?Mount Prospect Public Library ,10 S Emerson St., Mount Prospect, IL. Join Eastern in supporting a great cause—come out and play for a purpose! https://lnkd.in/guDBXkE2

U.S.-EU Trade Dispute: Section 232 Tariffs Reinstated, EU Retaliatory Measures Announced ? Effective March 12, 2025, the U.S. reinstated Section 232 tariffs, imposing a 25% duty on steel and aluminum imports, replacing the tariff rate and absolute quotas that expired on March 11, 2025. The new tariffs extend beyond raw materials to include household products like cookware and window frames, as well as machinery, gym equipment, certain electrical appliances, and furniture. Additionally, by May 12, 2025, the U.S. Secretary of Commerce will implement a system to further expand the list of steel and aluminum derivative products subject to tariffs of up to 25%. In response, the EU will reinstate its previously suspended 2018 and 2020 rebalancing measures on April 1, 2025, imposing tariffs on €4.5 billion worth of U.S. exports, including bourbon, motorcycles, and boats. The EU will also introduce additional countermeasures targeting €18 billion worth of U.S. goods, with a consultation period running from March 12 to March 26, 2025, to finalize the product list. These measures will be fully implemented by mid-April 2025. The EU maintains that its response is proportionate and remains open to negotiations to reach a resolution. ? To view the view list of products which could be subject to possible commercial policy measures, visit https://lnkd.in/eQjuY97z For Guidance on Import Duties on Steel and Steel Derivative Products, visit https://lnkd.in/g7T-HSNR For Guidance on Import Duties on Imports of Aluminum and Aluminum Derivative Products, visit https://lnkd.in/g2pVYe9F

Official CBP Statement On Tariffs ? On Saturday, March 8, 2025, U.S. Customs and Border Protection (CBP) issued an official statement regarding tariff updates. The statement outlined the following changes, which were implemented on March 4 and March 7, 2025, under five Presidential Executive Orders for imports from China, Hong Kong, Canada, and Mexico: ? - Additional 25% tariffs on goods that do not satisfy U.S.-Mexico-Canada Agreement (USMCA) rules of origin.? - A lower, additional 10% tariff on energy products imported from Canada that fall outside the USMCA preference.? - A lower, additional 10% tariff on potash imported from Canada and Mexico that falls outside the USMCA preference.? - Additional 20% on goods from China and Hong Kong (increased from 10% on March 4).?? ? Starting March 7, 2025, goods from Canada and Mexico that qualify for the USMCA preference will no longer be subject to additional tariffs. The rules for USMCA eligibility remain unchanged and are specified in 19 CFR 182. These updates are effective immediately and are not applied retroactively. ? https://lnkd.in/gxiEgkVP

Canada announces robust tariff package in response to unjustified U.S. tariffs Canada is imposing retaliatory tariffs?in response to U.S. trade measures,?to protect its economy and jobs. Finance Minister Dominic LeBlanc and Foreign Affairs Minister Mélanie Joly announced a 25% tariff on $155 billion worth of U.S. imports, beginning with an initial $30 billion in goods such as food, beverages, appliances, and apparel, effective March 4, 2025. If U.S. tariffs persist or expand, Canada will extend countermeasures to include additional products like electric vehicles, beef, dairy, and steel. To support Canadian businesses, the government is implementing a remission process for exceptional tariff relief. Canada also reaffirmed its commitment to border security, highlighting a $1.3 billion initiative to combat fentanyl smuggling, which has already led to a 97% reduction in seizures. The government urges the U.S. to reverse its decision, emphasizing the tariffs’ negative impact on both economies while standing firm in defending Canadian industries. To view the full list of products subject to 25% tariffs effective March 4, visit: https://lnkd.in/ghedqg3e For information on the remission process, visit: https://lnkd.in/guuWREE6 To view the Notice of Intent to Impose Countermeasures in Response to United States Tariffs on Canadian Goods, visit: https://lnkd.in/gm_hpfZ7

China slaps extra tariffs of up to 15% on imports of major US farm exports and adds trade limits China has responded to the U.S. tariff hikes with additional tariffs and trade restrictions. Key details of the new measures include: ? Tariffs on U.S. Agricultural Products: - 15% additional tariffs on U.S. chicken, pork, soybeans, beef, wheat, corn, and cotton. - 10% additional tariffs on sorghum, soybeans, pork, beef, seafood, fruits, vegetables, and dairy products. - Goods already in transit are exempt until April 12. Suspension of U.S. Imports: - U.S. lumber imports are suspended due to forest pests like bark beetles and longhorn beetles. - Three U.S. companies lose soybean export qualifications due to contamination with ergot fungi and seed-coating agents. Anti-Circumvention Investigation: - Investigation into U.S. fiber optic products to determine potential circumvention of China’s anti-dumping measures. Restrictions on U.S. Firms: - 10 U.S. firms added to China’s unreliable entity list, blocking trade and investment. - 15 U.S. firms placed on the export control list, citing threats to national security in sectors like aerospace and defense. Impact on Imports: - In 2024, China imported $24.7 billion in U.S. farm products, making up 14% of total U.S. farm exports. - China has diversified its sources, increasing soybean imports from Brazil and Argentina. https://lnkd.in/gkTD6-DX ?

Additional Duties on Imports from China and Hong Kong ? Since February 4, 2025, imports of goods originating from China and Hong Kong have been subject to additional ad valorem duties under specific Harmonized Tariff Schedule of the United States (HTSUS) classifications. These duties apply to goods entered for consumption or withdrawn from warehouses for consumption in the United States. As of today, March 4, 2025, the initial 10% duty imposed in February has increased by an additional 10%, bringing the total ad valorem duty to 20%. ? Duty Rates and Effective Periods February 4, 2025 – March 3, 2025: All imports of articles originating from China and Hong Kong, except those classified under HTSUS headings 9903.01.21, 9903.01.22, and 9903.01.23, as well as personal-use items included in accompanied baggage, were subject to an additional 10% ad valorem duty. March 4, 2025, and onward: The additional duty increases by another 10%, totaling 20% ad valorem for all applicable imports. ? Exclusions Certain categories of goods are exempt from these additional duties, including: - Donations made by U.S. entities, such as food, clothing, and medicine intended for humanitarian relief. - Informational materials, including but not limited to publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD-ROMs, artworks, and news wire feeds. - Personal-use items included in the accompanied baggage of individuals arriving in the United States. - Goods loaded onto a vessel at the port of origin or in transit on the final mode of transport before entry into the United States prior to 12:01 a.m. EST on February 1, 2025. - Goods entered for consumption or withdrawn from warehouses for consumption between February 4, 2025, and March 7, 2025. ? Drawback Prohibition No drawback is available for the additional duties imposed under this regulation, as implemented in the corresponding Federal Register Notice. ? An FRN is scheduled to be published on 3/6/2025. To view the full CSMS #64299816, visit https://lnkd.in/gArUNxrd

US East and Gulf Coast dockworkers ratify new six-year contract Over 45,000 U.S. dockworkers represented by the International Longshoremen's Association have ratified a six-year contract, securing a 62% wage increase and preventing potential disruptions until 2030. The agreement, effective from October 1, 2024, to September 30, 2030, raises the hourly base wage from $39 to $63, enhances healthcare and retirement benefits, and protects workers from automation threats. A 99% approval vote sealed the deal, which followed months of negotiations and a brief strike that disrupted shipping. Covering 36 major U.S. ports, including New York and New Jersey, the new contract provides stability for the shipping industry amid global trade uncertainties. https://lnkd.in/eaifsGbi

Ocean Carriers’ Ever-Tightening Grip on Capacity Control Shows No Signs of Loosening Over the past 25 years, ocean carriers have steadily tightened their control over capacity, prioritizing profitability at the expense of service quality. Initially, capacity was taken for granted, but the 2008–09 financial crisis triggered a shift as carriers adopted slow steaming, reducing available space. Since then, blank sailings, port congestion, and consolidation have allowed carriers to manipulate supply, making capacity constraints a permanent feature of the industry. External shocks such as COVID-19, geopolitical tensions, and climate-related disruptions have further compounded the issue, reinforcing carriers’ ability to manage space and maintain high rates. Now, the industry faces another inflection point with the upcoming energy transition. The International Maritime Organization’s mandate to cut greenhouse gas emissions by 2050 will force carriers to adopt costly alternative fuels, making it easier to justify passing expenses to shippers. With major players like Maersk and Hapag-Lloyd forming alliances to ensure reliability, carriers are signaling that tight capacity control is here to stay. Whether through strategic service reductions or regulatory shifts, the grip on supply remains firm, leaving shippers with little relief in sight. https://lnkd.in/eeTvgTzp

Eastern Shipping Worldwide Expands Fort Myers Office Eastern Shipping Worldwide continues to expand, thanks to the trust and support of its clients and partners. The company has relocated its Fort Myers office to a larger space at 10070 Daniels Interstate Ct., Suite 100-B, Fort Myers, FL 33913. Situated near Southwest Florida International Airport (RSW), the new location provides additional workspace to support its growing team and enhance service capabilities. ?This expansion follows the relocation of Eastern’s global headquarters in June 2024 to a state-of-the-art facility in Itasca, IL, reinforcing its commitment to efficiency, security, and service excellence as a Verified C-TPAT Partner. The Fort Myers office remains home to Eastern CHB, LLC, as well as the company’s controller and accounting team. ?Eastern attributes its continued growth to the strong relationships it has built and looks forward to serving clients and partners from its new location. https://lnkd.in/gmf7A_i5