NCBFAA, Shippers Warn White House of Severe Supply Chain Disruptions Should Tariffs Proceed
The National Customs Brokers & Forwarders Association of America and dozens of state and national-level trade groups representing shippers have signed a letter warning the heads of multiple federal agencies of potential supply chain disruptions that could result should tariff changes proceed as planned.
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The letter also calls for agency officials to reconstitute the White House Supply Chain Disruption Task Force to stave off potential congestion on the U.S. cargo network last seen during the COVID-19 pandemic.
"There is great concern among stakeholders that the tariff implementation changes, especially with China, will recreate the supply chain challenges we faced during the pandemic with severe port congestion, inaccessible vessel capacity and containers, higher freight rates, and shipment delays," said the June 18 letter addressed to Transportation Secretary Sean Duffy, Commerce Secretary Howard Lutnick and Federal Maritime Commission Chairman Louis Sola.
The de-escalation of the trade war with China and the 90-day pause on reciprocal tariff increases have resulted in a rush to move cargo, which in turn has led to a shortage of empty shipping containers at origin and limited vessel capacity, the letter said. These actions also have contributed to congestion at foreign ports and significant increases in ocean freight rates, the letter continued.
The letter urged leaders to work with ports, terminals, warehouses, and labor and transportation providers, as well as engage with U.S. importers and exporters, to prevent the network congestion last seen during the height of the COVID-19 pandemic.
"While we appreciate the goal of trying to negotiate better deals for the U.S. economy, the use of tariffs is having some unintended consequences for U.S. importers, exporters and related industries, including the logistics network across the country," the letter said, alluding to the increase in blank sailings that occurred after the U.S. implemented 145% tariffs on China (see 2506120093).