President's Desk Newsletter
Eastern Shipping Worldwide
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Industry News
Europe’s largest inland container terminal opens in Germany
Duisburg Gateway Terminal (DGT), Europe's largest inland container facility, has opened in Germany, facilitating active rail traffic with China. The initial phase covers 155,000 square meters, with plans to expand to 235,000 square meters within two years, aiming for an annual capacity of 850,000 TEUs. Strategically situated on the Rhine River, DGT serves as a critical hub in the Rhine-Alpine corridor, connecting the Mediterranean to Northern Europe. The terminal is designed to be climate-neutral, employing renewable energy and hydrogen technologies. Upon full operation, it will feature six cranes and 12 rail tracks, accommodating up to 20 trains, 400 trucks, and six ships daily. Read more
‘Down for the foreseeable future’: Truckers grapple with Hurricane Helene’s aftermath
Hurricane Helene caused significant devastation in the Southeast, resulting in over 100 fatalities and millions without power. Major highways, including Interstate 40 and Interstate 26, remain impassable, hindering aid delivery and complicating recovery efforts. High winds downed trees and power lines, while flooding swept away homes and vehicles, showcasing the storm's severity. Priority has shifted to delivering bottled water to affected regions, as many water treatment facilities are non-operational. The destruction poses further challenges for an already struggling supply chain, exacerbated by the ongoing disruptions at East Coast and Gulf Coast ports. Experts warn that the combination of infrastructure damage and existing economic pressures may lead to the closure of some carriers in the region, although widespread freight rates are not expected to improve significantly. Read more
China tightens rules on hazardous cargo at Ningbo
Container lines face mounting challenges as China’s Maritime Safety Administration (MSA) tightens hazardous cargo regulations at Ningbo, one of China’s busiest ports, requiring carriers to submit a Dangerous Goods Declaration (DGD) and Material Safety Data Sheet (MSDS) for all import, export, and transshipment cargo 72 hours before vessel cut-off. These stricter protocols follow a series of recent onboard fires, including a major explosion on the YM Mobility and incidents involving MSC Capetown III and Maersk Frankfurt. Non-compliance risks cargo delays or rollovers, as the MSA and carriers intensify their focus on accurate hazmat declarations to prevent further accidents, highlighting ongoing concerns about improper hazardous cargo handling and stowage. Read more
Carriers look to incoming government to act on Mexican port challenges
Ocean carriers are urging Mexico’s new government to address severe infrastructure limitations at key ports, especially Manzanillo, to handle rising traffic driven by near-shoring trends. At the AMANAC congress, industry leaders criticized inefficiencies causing ships to face delays of up to five days and called for urgent investment in capacity upgrades. Mexico's ports saw a 14.8% increase in throughput in the first eight months of the year, but this growth has strained marine infrastructure, which executives label as “disastrous.” ASIPONA Manzanillo representatives highlighted ongoing improvements, such as new road access and inspection technology, but industry voices warn that without enhanced port capabilities and strategic government investment, Mexico risks losing its competitive edge in global trade logistics. Read more
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Overtime strike begins at the Port of Montreal
As of October 10, 2024, an overtime strike initiated by the Longshoremen’s Union CUPE, Local 375, at the Port of Montreal is raising concerns about disruptions to the logistics chain and the supply of goods. While all terminals remain open, longshoremen will not work overtime, leading to potential processing delays and a backlog of containers. Approximately ten ships may be impacted, particularly at the Cast, Maisonneuve, Racine, Viau, Logistec, CanEst, and Lantic terminals, though liquid bulk and certain other services remain unaffected. The strike could disrupt about 50% of goods transiting through the port, including essential food, medical supplies, and raw materials, thereby threatening supply chain reliability and the competitiveness of the St. Lawrence maritime corridor. In response, the Montreal Port Authority has activated its business continuity plan and established a web page for updates on operational impacts. Read more
Customs Brokerage News
Canada's final list of steel and aluminum products from China that will be subject to a 25% surtax
The Canadian federal government will impose a 25% surtax on steel and aluminum imports from China starting October 22, 2024, exempting items already in transit. The surtax applies to products marked as originating from China, as defined by the Determination of Country of Origin for the Purpose of Marking Goods (Non-CUSMA Countries) Regulations. Detailed information on surtax administration will be available on the Canada Border Services Agency website, along with a full list of affected products and tariff classifications on the Finance Canada?and CBSA websites. Read more
US locks in steep China tariff hikes, some industries warn of disruptions
The Biden administration has finalized a series of tariff hikes on Chinese imports, aimed at protecting strategic U.S. industries from China’s state-driven practices. Beginning September 27, a 100% duty will be imposed on electric vehicles, alongside a 50% tariff on solar cells and a 25% duty on steel, aluminum, EV batteries, and critical minerals. By 2025, additional 50% tariffs on semiconductors, including silicon wafers and polysilicon used in solar panels, will take effect. Despite requests from automakers, tariffs on essential EV battery materials remain unchanged. Trump-era tariffs on $300 billion worth of Chinese goods, covering products like toys and industrial machinery, will continue at rates between 7.5% and 25%. Temporary relief has been granted for U.S. port operators, allowing exclusions for Chinese cranes ordered before May 14, 2026. Tariffs on medical face masks and surgical gloves are set to rise to 50%, while duties on syringes will immediately increase to 100%, with a one-year exemption for syringes used to feed infants. The U.S. Trade Representative will also review exclusion requests for certain Chinese industrial machinery categories. Read more
Biden-Harris Administration Announces New Actions to Protect American Consumers, Workers, and Businesses by Cracking Down on De Minimis Shipments with Unsafe, Unfairly Traded?Products
On September 13, 2024, the Biden-Harris Administration and the Department of Homeland Security (DHS) unveiled new measures to address the misuse of the de minimis exemption, which allows duty-free entry for shipments valued at $800 or less. This exemption has led to a dramatic increase in shipments, from 140 million to over a billion annually, largely from Chinese e-commerce platforms. This surge complicates enforcement and consumer protection, facilitating the entry of unsafe products, unfairly traded goods, and illicit drugs. U.S. Customs and Border Protection (CBP) will implement new rules to enhance transparency, exclude certain products from the exemption, improve data collection, and require electronic Certificates of Compliance for consumer goods. With 89% of cargo seizures and 97% of narcotics seizures in 2024 originating from de minimis shipments, the Administration is also pushing for comprehensive legislative reforms by year-end to modernize trade laws, better target illicit goods, and address forced labor. CBP processes nearly four million de minimis shipments daily and will gain stronger enforcement tools under these new actions. Read more
US customs clamps down on vague cargo descriptions
US Customs and Border Protection (CBP) is tightening enforcement on vague shipment descriptions in Air Cargo Advance Screening (ACAS) filings, requiring precise cargo descriptions starting November 12. A warning period is currently in place, with daily notices sent to ACAS filers highlighting non-compliant descriptions. Terms like “gift” or “accessories” will no longer be accepted, and non-compliant shipments will be rejected. Failure to correct descriptions could result in entire shipments being held. This crackdown comes as part of broader US efforts to strengthen import security, particularly in response to rising de minimis shipments and concerns over illicit goods. Read more
Eastern News
Eastern Shipping Worldwide Supports RMCH-CNI at Annual Sporting Clays Tournament
The RMHC-CNI Sporting Clays Tournament, held on September 20 and 21 at Northbrook Sports Club in Hainesville, IL, achieved remarkable success by raising $330,000 to support RMHC-CNI’s mission of providing essential healthcare services and community assistance to families facing medical emergencies. Eastern proudly supported this initiative, with staff members Kate Burt and Rick Bloniarz volunteering their time at the event. Participants enjoyed a catered breakfast and lunch, designated training stations for newcomers, various challenging shooting stations guided by experienced trainers, as well as silent auctions, raffles, and side events with prizes, all contributing to a memorable and impactful experience. Read more