| | | | | | Industry News Customs Brokerage News | | | | | | | | | | Global Shipping Disruptions Intensify Across Panama, Suez, and Hormuz Corridors | | Ongoing disruptions across the Panama Canal, Red Sea/Suez, and key energy corridors continue to drive vessel rerouting, longer transit times, and higher fuel costs, tightening global capacity and reducing schedule reliability. A renewed El Niño risk (61% probability through 2026, with approximately 50% chance of strong intensity) threatens lower water levels in the Panama Canal, increasing the likelihood of transit restrictions. In the Suez Canal, the removal of a 15% transit rebate effective April 7, 2026 reflects declining traffic as major carriers suspend routes due to Red Sea and Middle East security risks, with many vessels rerouting around the Cape of Good Hope. At the same time, the U.S. blockade of Iranian ports, implemented in April 2026, has fully halted Iran’s seaborne trade—impacting approximately 90% of its economy—within 36 hours, with enforcement extending beyond the Strait of Hormuz into global waters. The region, which carries 20% of global oil supply, is experiencing reduced tanker movement, vessels being turned back, and heightened military enforcement involving over 10,000 personnel and naval assets, increasing insurance costs and volatility across global shipping and energy markets. | | | | | | | | Trucking Capacity Tightens as Enforcement and Costs Increase | | Regulatory enforcement and compliance requirements are tightening trucking capacity and increasing operational risk. A recent Florida enforcement operation inspected over 3,300 commercial vehicles, placing 176 drivers out of service, including violations tied to language and immigration compliance, signaling stricter enforcement across the industry. At the same time, proposed legislation would raise minimum insurance requirements from $750,000 to $5 million, significantly increasing carrier costs and potentially forcing smaller operators out of the market. Ongoing regulatory transitions, including the FMCSA medical certification rule, have required temporary exemptions through October 11, 2026, highlighting continued compliance challenges. Combined with rising insurance exposure and enforcement pressure, these factors are tightening available trucking capacity, increasing inland rates, and elevating the risk of delays. | | | | | | | | Global Fuel Disruptions and Policy Shifts Drive Rising Freight Costs and Capacity Pressure | | Rising fuel costs and supply constraints are increasing pressure across global shipping and transportation networks. In North America, Canada’s temporary suspension of the federal fuel excise tax through September 7, 2026 is helping offset rising costs for carriers, while in the U.S., diesel prices have climbed to over $5.60 per gallon nationally, with regions such as California exceeding $7.50 per gallon, driving higher inland transportation costs.
Across Europe, Germany and other EU countries are implementing targeted fuel tax relief measures to manage rising transportation expenses. In Asia, China and India are drawing on strategic reserves and adjusting sourcing strategies to stabilize domestic supply, further tightening global fuel availability.
At the same time, the U.S. blockade of Iranian ports is disrupting a critical energy corridor, contributing to an expected 10–15% reduction in global oil supply and increasing volatility across global energy markets.
| | | | | | | | Rail Congestion Drives Delays Across Canadian Ports | | Canadian ports show stable vessel flow but ongoing inland congestion, with rail dwell times of approximately 6–11+ days slowing cargo movement, especially in Halifax and Vancouver. This is extending transit times, increasing costs, and reducing overall reliability.
Canadian ports are seeing stable vessel flow but ongoing inland congestion, with rail dwell times of about 6–11+ days slowing cargo movement, particularly in Halifax and Vancouver. This is extending transit times, increasing costs, and reducing overall reliability. Vancouver is averaging 7 days rail dwell with~2-day vessel delays, while Prince Rupert is seeing 7–10 days dwell with minimal vessel delay. Montreal remains more stable at ~5–6 days dwell, while Halifax continues to face the highest congestion at 9–11 days. Saint John is performing better, with 4.5–7 days dwell and improving flow.
| | | | | | | | Bipartisan Cargo Theft Bill Advances in Congress | | A bipartisan cargo theft bill—the Combating Organized Retail Crime Act—is gaining strong support in Congress, with backing from roughly half of House members, 43 senators, and the administration, and has already advanced out of the House Judiciary Committee. The legislation would create a coordinated, multi-agency effort to combat organized cargo theft, which industry estimates say costs over $18 million per day and poses growing risks to supply chains and public safety. While timing remains tight ahead of upcoming elections, advocates are pushing for passage either as a stand-alone bill or attached to a larger transportation package. | | | | | | | | | | | | Softwood Lumber Tariff Uncertainty Continues to Impact Canada–U.S. Trade | | The U.S. has proposed a preliminary softwood lumber tariff of about 25% (down from over 35%), but uncertainty remains as the final rate will be set in August. Canadian producers continue to face cost pressure and instability, with industry groups pushing for direct government negotiations instead of ongoing trade disputes that are impacting jobs, pricing, and cross-border supply chains. | | | | | | | | Revised U.S. Metals Tariffs Now in Effect with New Rates and Structure | | President Trump signed a proclamation strengthening Section 232 tariffs on imported steel, aluminum, and copper, with clear rules requiring tariffs to be applied to the full customs value of products. Effective April 6, 2026, primary metal goods are now subject to a 50% tariff, derivative products generally 25%, and certain industrial and electrical grid equipment 15% through December 31, 2027. Products made abroad using entirely U.S.-origin metals qualify for a reduced 10% tariff, while items containing minimal metal content are excluded. Beginning January 1, 2028, applicable products transition back to standard tariff rates under the revised structure. The policy standardizes tariff calculations, closes valuation gaps, and reinforces domestic manufacturing and supply chain security. | | | | | | | | U.S. Sets Up to 100% Tariffs on Patented Pharmaceuticals with Phased Implementation | | The U.S. implemented Section 232 tariffs on patented pharmaceuticals and related ingredients, with tariffs of up to 100% based on product type and company commitments. Effective July 31, 2026 for select companies and September 29, 2026 for all others, standard tariffs are set at 100%, with reduced rates including 20% for companies with approved onshoring plans (rising to 100% by April 2, 2030), 15% for certain allied trade partners, and as low as 10% or 0% under specific trade or pricing agreements. Certain critical and specialty drugs are exempt, and generic pharmaceuticals are excluded from tariffs. The policy restructures pharmaceutical sourcing, increases import costs, and accelerates domestic manufacturing investment tied to national security priorities. | | | | | | | | IEEPA Duty Refund Process Launches April 20 via ACE CAPE Tool | | CBP is launching Phase 1 of the IEEPA duty refund process through the CAPE tool in the ACE Portal, effective April 20, 2026. The process applies to certain unliquidated entries and entries within 80 days of liquidation, allowing refunds to be submitted electronically and consolidated rather than processed per entry. Submissions must be completed in ACE, require ACH enrollment, and are typically processed within 60–90 days. CAPE simplifies the refund process by recalculating duties without IEEPA, updating entries, and issuing consolidated refunds by importer. | | | | | | | | EU Tightens Steel Import Controls with New Quotas and Higher Duties | | The EU has reached a provisional agreement to strengthen protections for its steel market in response to global overcapacity, with measures set to take effect July 1, 2026, following the expiration of current safeguards on June 30. The agreement reduces tariff-free steel import quotas to 18.3 million tonnes annually, a 47% decrease from 2024 levels, and increases duties on imports exceeding quotas from 25% to 50%. The scope of covered products expands from 28 to 30 categories, while enhanced traceability requirements will require importers to provide clearer proof of origin, which will also factor into quota allocations. A review within six months will assess whether additional products should be included. | | | | | | | | | | | | | | Our mailing address is: One Pierce Place, Suite 460 E, Itasca, IL 60143
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