Competitive Edge
February 26th, 2025
Stay Current with InterlogUSA
Market Update
— Tariffs:
Canada and Mexico – In a February 24th news conference, President Trump stated the tariffs on Canada and Mexico are on track to go into effect on March 4th. This follows a 30-day delay earlier in February, which was implemented to give the two countries time to address border security issues. Both Canada and Mexico have warned that they will impose retaliatory tariffs if these measures are enforced.
Furthermore, the President has revealed plans to impose new tariffs on all steel and aluminum, as well as possibly other reciprocal tariffs, to “align the tax rates that other countries impose on American imports,” according to Freightwaves. However, these proposed tariffs have yet to be implemented, and further information is awaited regarding specific details.
Additionally, as of February 4th, the U.S. enacted 10% additional tariffs on Chinese imports.
–ILA union members have voted to ratify the new six-year master contract, which covers more than 20,000 workers along East/Gulf Coast ports, per Freightwaves. The official signing will be on March 11th.
–The Port of Los Angeles continues to post record numbers, seeing an 8% year-over-year increase on TEUs processed in January. According to the Port’s Executive Director, in a news release, this increase was largely due to “a strong economy, along with importers bringing in cargo as a hedge against tariffs and ahead of Lunar New Year.”
Port of LA is not alone, Georgia ports released their January numbers and container volumes have grown 12.5% percent year-over-year.
Freight News: U.S. Port Fees on Chinese Vessels?
The Trump administration has proposed a port usage fee on Chinese built and operated ships calling on the U.S. If the proposals are implemented, it could impact costs for U.S. shippers and the global supply chain.
The proposal, published by the United States Trade Representative (USTR) in the Federal Register, suggests imposing fees of up to $1.5 million per U.S. port call for ships built in China, and $500,000 for any vessel operator that has even one Chinese-built ship in its fleet, or has an order with a Chinese shipyard.
This comes after the USTR found that “China’s targeting for dominance unreasonable because it displaces foreign firms, deprives market-oriented businesses and their workers of commercial opportunities, and lessens competition and creates dependencies on China, increasing risk and reducing supply chain resilience,” per the USTR press release.
The USTR is seeking public comment on these proposed actions. The public comment period is open until March 24th, the same day the USTR will hold a public hearing on the issue.
Did You Know? With Johnny Cargo!
Answer: B – South Carolina Ports
SC Ports, at 52-feet, is the deepest harbor on the U.S. East Coast. Per AJOT, they are currently working on the completion of an infrastructure project along the terminal’s toe wall, that will allow the berth to have a 54-foot depth.
InterlogUSA’s chat bot Johnny Cargo sure is an inquisitive soul. However, he doesn’t just ask about industry-related trivia. Johnny also loves to ask supply chain professionals about their shipping arrangements and which areas can benefit from InterlogUSA’s assistance as an end-to-end freight forwarder.
He works around the clock and is always available for conversation.
Single-Entry Bonds vs. Annual Customs Bonds
Single-Entry Customs Bonds: Most single-entry customs bonds, as implied by the name, are valid for one import. Depending on the monetary value of your imported goods, the single-entry bond will fluctuate in price. The most popular use of single-entry bonds are amongst businesses who import very infrequently, although depending on the commercial value of your cargo and how often you import to the U.S., using a new single-entry bond for each one of your shipments may save you money..
Annual Customs Bonds: are intended for companies who import multiple times throughout the year. Rather than purchasing a new bond every time you import goods, a continuous bond exists to make the importing process less tedious and less expensive (for those who import frequently throughout the year.)
Our team at Interlog USA has helped tons of people decide which option is best for their company. If you would like to have a simple conversation about picking a customs bond, contact us via email at: support@interlogusa.com and we’d be happy to help you out!
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