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.
Volumes of imported goods from China -- particularly those that would have been eligible for de minimis -- are likely to fall in the coming months, according to Gene Seroka, executive director for the Port of Los Angeles. But he said it's unclear how much they will fall, and when.
As reciprocal tariffs against imports from China and Hong Kong fall from 125% to 10% for 90 days as the U.S. and China seek to hash out a trade deal (see 2505120006), so are Southern California port volumes and trans-Pacific freight rates reflected the volatility seen in the trade space.
Elevated import volumes at major U.S. ports could persist through this spring "amid continuing tariff turmoil" before volumes face potential year-over-year drops over the summer, according to the National Retail Federation and Hackett Associates.
The head of the American Apparel and Footwear Association is urging the International Longshoremen's Association (ILA) to continue negotiating with the U.S. Maritime Alliance (USMX) to reach a labor agreement before the current one expires Jan. 15.
The possibility of a double whammy come January consisting of a strike at East and Gulf coast ports and the implementation of President-elect Donald Trump's proposed tariffs (see 2411250034) is making shippers nervous, with the National Retail Federation saying that the scenarios could result in a "continued surge in imports through next spring."
The Federal Maritime Commission is asking the parties to a West Coast ocean shipping and port agreement to provide more information about their alliance before an updated version takes effect, it said in a notice released this week.
Uncertainties over labor negotiations affecting U.S. East Coast and Gulf Coast ports, plus concerns over tariffs proposed by President-elect Donald Trump (see 2411060037), could result in a higher volume of U.S. imports in the coming weeks, the National Retail Federation said Nov. 8.
The American Chemistry Council said that 90% of liquid chemicals imported and exported go through ports that are closed by the dockworkers strike. "The chemicals that are shipped to and from these ports are used by every segment of the world's economy, including chemistry needed to support healthcare, advanced energy, agriculture, auto manufacturing, building and construction, household products, aerospace and defense, semiconductor chips and electronics, and more," the trade group said. The imports and exports in 2022 were worth more than $100 billion.
More than 270 trade associations, including importers, exporters, logistics providers, manufacturers, retailers, farmers and more asked the president Oct. 2 to immediately reopen the ports and get the two sides talking with the help of a federal mediator. President Joe Biden has issued a statement that suggests he sides with the strikers, and his press secretary said he would not invoke the Taft-Hartley Act to force an end to the strike.