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January 2025

   
   

Industry News

Ammo in Wooden Box Containers

China Adds to Sanctions of U.S. Defense Contractors Over Taiwan Arms Sales

With the economic and geopolitical rivalry between the U.S. and China continuing to intensify, China has escalated economic penalties against major U.S. defense companies supplying weapons to Taiwan. China's broader strategy of using economic pressure to influence global affairs, particularly regarding its claim over Taiwan, includes sanctions on:

  • Blacklisting U.S. defense companies: China has labeled several companies as "unreliable," restricting their business operations within China.
  • Restricting access to key materials: China has barred certain U.S. companies from purchasing essential materials for both civilian and military production.
  • Imposing export controls: China has restricted the export of critical minerals like lithium and gallium, vital for modern technologies Read more

     
Port of Vancouver

Vancouver braces for congestion, high rail dwells through January

The Port of Vancouver is currently experiencing congestion due to a backlog of rail containers. This congestion stems from a confluence of factors, including vessel bunching at Asian ports, a surge in cargo volume ahead of the Lunar New Year, a previous dockworker strike, and winter weather in Western Canada that disrupted rail operations. These factors have significantly increased rail container dwell times at the port.


While the situation presents challenges, stakeholders are actively working to address the backlog. Railroads like CN are collaborating with port operators to clear backlogs and anticipate a return to normal dwell times within the coming weeks. Terminal operators, such as DP World Canada, are working closely with railroads to manage increased import volumes. Additionally, the Port of Prince Rupert, which recently overcame similar challenges, has successfully reduced its dwell times.


While high on-dock times are expected to continue for the remainder of January, a significant drop in import volumes after the Lunar New Year is anticipated to alleviate congestion at the Port of Vancouver. Read more

     
Port of Djibouti

Gaza truce talks spur hope for resumption of Red Sea shipping

Following over 400 days of conflict, Israel and Hamas are reportedly nearing a ceasefire agreement facilitated by Qatar.  This development could significantly impact global shipping, as the Red Sea shipping crisis, triggered by Houthi attacks in support of Hamas, has forced many vessels to reroute, driving up freight rates. While a ceasefire with Hamas is a positive step, the continuation of Houthi attacks remains a concern. The International Chamber of Shipping urges caution, emphasizing the need for a verified and sustained agreement, including the release of the hijacked car carrier Galaxy Leader and its crew. Although a ceasefire could lead to a decrease in freight rates, analysts remain cautious, citing concerns about the long-term security of the Bab al-Mandeb Strait and the continued influence of Iranian support for the Houthi militia. Read more

     
ILA Protesters

ILA and USMX Reach Tentative Agreement on New Six-Year Master Contract

The International Longshoremen's Association (ILA) and United States Maritime Alliance (USMX) successfully negotiated a tentative six-year contract agreement, averting a potential work stoppage on January 15th. This agreement, subject to ratification by both union and management, safeguards existing ILA jobs while introducing modernizations to East and Gulf Coast ports to enhance safety, efficiency, and capacity within the supply chain. Both parties emphasized that this agreement benefits ILA workers, American consumers, and businesses by maintaining a strong American economy. Read more

     
Smoke Coming out of Cargo Vessel

New EU rules to decarbonize the maritime sector take effect

The FuelEU Maritime Regulation, effective January 1, 2025, mandates a gradual reduction in the greenhouse gas intensity of energy used by ships over 5,000 gross tonnage in EU ports. This reduction targets -2% in 2025, escalating to -80% by 2050 compared to 2020 levels. Companies must now monitor energy use and submit FuelEU Reports by January 31, 2026. This legislation, alongside the EU ETS expansion and the Alternative Fuel Infrastructure Regulation, supports the EU's goal of 90% transport emissions reduction by 2050. Read more

     
Panama Canal

Control of the Panama Canal is non-negotiable, says foreign minister

Panama’s Foreign Minister, Javier Martinez-Acha, reaffirmed the country’s non-negotiable sovereignty over the Panama Canal after U.S. President-elect Donald Trump’s January 13, 2025, statement suggesting economic or military action to control the waterway. Panama’s control of the canal, which was fully transferred in 1999 following a 1977 agreement, is central to its national identity. President José Raul Mulino also declared in December 2024 that every part of the canal and its surrounding area belongs to Panama. The canal remains a crucial maritime route, allowing ships to pass between the Atlantic and Pacific oceans without navigating around South America. Read more

     
Building a ship

US probe finds China unfairly dominates shipbuilding, paving way for penalties, sources say

The U.S. government, led by President Biden, concluded a trade investigation in late 2024, finding that China unfairly dominates global shipbuilding through subsidies, barriers to foreign firms, and intellectual property theft. This investigation, launched in April 2024, was prompted by concerns from U.S. unions regarding China's expanding market share, which surged from 5% in 2000 to over 50% in 2023. The report, set to be released shortly, could pave the way for penalties against Chinese-built vessels, such as tariffs or port fees, similar to those imposed on other Chinese imports under Section 301 of the Trade Act of 1974. Read more

     
Gavel and paperwork in front of cargo containers

US Commerce Department Raises Max Penalties for Import/Export Non-Compliance

The U.S. Department of Commerce is set to increase civil penalties for trade compliance violations effective January 15, 2025. These include higher fines for breaches of the 2018 Export Control Reform Act (ECRA), rising from $364,992 to $374,474, and foreign trade zone violations, increasing from $3,558 to $3,650. These adjustments reflect inflation and will be applied retroactively. While relatively minor, these increases reflect the rising costs of non-compliance, particularly as companies face potential new tariffs and de minimis provision reforms. This follows a March 2024 warning from the Departments of Commerce, Justice, and Treasury regarding the severe penalties for violating U.S. sanctions and export control laws, including up to 20 years imprisonment and a $1 million fine. Meanwhile, the Federal Maritime Commission continues to expand its role in resolving shipper disputes, including through class action mechanisms, as it enforces the Ocean Shipping Reform Act of 2022. Read more

     
Containers on Rail

U.S. Limits Chinese Content in Freight Rail Cars

The U.S. Department of Transportation (DOT) issued a final rule on December 19, 2025, that will place the following restrictions on newly-built freight cars placed into service in the U.S. In essence, this rule seeks to limit the use of foreign-made components, particularly those from China, in U.S. freight cars to bolster national security and protect American businesses.


Key Restrictions:

  1. Manufacturing Location:  Freight cars must be made in qualified facilities by qualified manufacturers.
  2. Foreign Content Limits:  No more than 20% of a freight car's components can come from "countries of concern" (currently only China) or state-owned enterprises. This limit decreases to 15% after three years. Sensitive technology and essential components cannot originate from these sources.
  3. Intellectual Property Protection: Freight cars cannot contain components that infringe on U.S. intellectual property rights.
  4. Manufacturer Responsibility:  Manufacturers must certify compliance and maintain detailed records.

Consequences of Non-Compliance: 

Manufacturers may face civil penalties and be barred from supplying freight cars to the U.S. rail system.


To view the formal notice, visit The Federal Register

     
   

Customs Brokerage News

Textile Rolls

Mexico curtails duty-free fulfillment option for apparel, textile importers

The Mexican government recently ended a program that allowed US apparel and textile importers to avoid duties by using Mexican warehouses as fulfillment hubs for products sourced outside Mexico. Ending this duty-free program forces US e-commerce brands to face a difficult choice: incur higher costs by fulfilling orders within the US or risk shifting fulfillment to Asia, which carries the risk of disruption due to potential changes in US import regulations.


The Mexican government also increased tariffs on certain apparel and textile products to protect domestic industries from competition. These changes significantly impact the e-commerce landscape, affecting both Mexican fulfillment providers and US brands, with an estimated $10 billion in 3PL services potentially shifting back to the US. Read more

     
Halifax Container Terminal in Canada

Canada Modernizes Tariff Preferences for Developing Countries

Effective January 1, 2025, Canada is updating its General Preferential Tariff (GPT) and Least Developed Country Tariff (LDCT) programs. These changes are expected to enhance trade opportunities for both Canadian importers and developing countries while aligning Canada's trade policies with international best practices.

  • Beneficiary Country Adjustments:
    • Several countries will be removed from the GPT, including Armenia, Belize, and Vietnam.
    • Lebanon and Tunisia will be reinstated to the GPT.
    • Cape Verde, Samoa, Vanuatu, and Tuvalu will be removed from the LDCT.
    • Countries like Sao Tome and Principe will be removed from the LDCT over a three-year period.
  • Introduction of GPT Plus (GPTP): 
    • A new program will offer enhanced tariff benefits to GPT beneficiaries that meet international standards on human rights, labor, and environmental protection.
  • Simplified Rules of Origin:
    • Harmonized rules across all programs, allowing apparel products to qualify for preferences if cut and sewn in developing countries, regardless of yarn and fabric origin.
    • This simplifies compliance for importers and aligns with the rules of the European Union and Japan.
  • Flexible Shipping Requirements:
    • Broader acceptance of documentation to prove direct shipment, including alternatives to traditional bills of lading.
    • Removal of the six-month storage limit for goods in intermediary countries.
    • These changes reflect modern shipping practices and improve program accessibility. 


     
low value shipment parcels

CBP seeks industry input on rules curbing low-value shipment abuse

U.S. Customs and Border Protection (CBP) issued a call for public comment on Monday regarding new regulations designed to enhance oversight of low-value imports, commonly known as de minimis shipments. These shipments, valued at less than $800, currently require minimal information from importers, hindering CBP's ability to effectively identify and interdict potentially harmful or illegal goods, such as illicit drugs, counterfeit products, and contraband. To address this, CBP proposes new rules requiring increased data collection from importers, including a fully electronic process for transmitting shipment information prior to arrival. This enhanced data collection will allow CBP to better target high-risk shipments and improve the efficiency of customs clearance. The agency processes over 4 million de minimis shipments daily, with a 50% increase in volume in 2024 compared to the previous year. The public comment period for these proposed regulations is 60 days. Individuals wishing to comment on the proposed rule may access the Federal e-Rulemaking Portal. Read more

     
   

Eastern News

Porsche Sprint Challenge Southern Europe

Eastern Proudly Sponsors Fulgenzi Racing in the 2025 Porsche Sprint Challenge Southern Europe

Eastern is proud to sponsor Fulgenzi Racing in the 2025 Porsche Sprint Challenge Southern Europe, a premier winter series for Porsche-only racing. Known for its excellence in motorsport, Fulgenzi Racing will compete across four race weekends at iconic circuits in Portugal and Spain, starting January 18-19 in Portimão. The series features the Porsche 992 GT3 Cup and Porsche 718 GT4 Clubsport (Gen 2), with seasoned drivers and rising stars battling it out in Sport and Club Divisions. With a packed schedule of practice, qualifying, and sprint races, the 2025 season promises thrilling action, and Eastern is excited to support Fulgenzi Racing on this competitive stage. Read more

     
   
   
   
   

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