Freight News: Week of September 18th, 2024

Gemini Cooperation Revises Their Network Schedule, New Updates

Several ports in Asia are expected to regain direct calls on several services in the Gemini Cooperation’s service network. Per a statement from Hapag-Lloyd — soon to be a partner in the new alliance – in October, they will announce their network selection for operators: either the Suez or Cape Network.

The carriers (Hapag-Lloyd and Maersk) both note, in separate statements, that the Suez Network would transit through the Red Sea, while the Cape Network would go around the Cape of Good Hope as an alternative of passing through the Red Sea – due to the various disruptions happening in that channel. 

According to the Journal of Commerce, the Suez Network would have 27 mainline and 30 shuttle services with a total of 300 ships at 3.4 million TEUs on trade lanes covering Asia-U.S., Asia-North Europe, Asia-Mediterranean, Asia-Middle East, Middle East-India, Europe, and the Trans-Atlantic.

Furthermore, on the Cape Network, they would have 29 mainline and 30 shuttle services with a total of 341 ships at 3.7 million TEUs on the same seven trade lanes as mentioned above, the JOC reports.

Depending on which network option is selected – either the Suez Network or the Cape Network –users will enjoy 57-59 services, plus a fleet of 300-340 vessels.

Biden Administration Finalizes China Tariffs

At the end of July, the U.S. Trade Representative (USTR) paused the initiation of tariff increases to be able to review the over 1,000 public comments of the proposed modifications. This comes after the USTR unveiled plans in May to boost Section 301 tariff rates on certain goods from China.

Some of tariff increases, as detailed in USTR’s Federal Register Notice, include:

  • Battery parts (non-lithium-ion batteries) – an increase of 25% in 2024.
  • Electric vehicles – an increase rate to 100% in 2024.
  • Medical gloves – an increase to no less than 25% in 2026.
  • Permanent magnets – an increase of 25% in 2026.
  • Semiconductors – an increase of 50% in 2025.
  • Ship-to-shore cranes – an increase of 25% in 2024. (Note: One caveat is this allows for exclusions for cranes ordered before May 14th, 2024, and that enter the country before May 14th, 2026).
  • Steel and aluminum products – an increase of 25% in 2024.

The increase of these tariffs is the Biden Administration’s attempt to improve the U.S.’ competitive standing in the clean energy and technology industry, Supply Chain Dive reports.

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