IEEPA Tariff Update: The IEEPA tariff case and CIT activity has been front and center over the past few weeks. The CIT/Court of International Trade ruled against a motion for preliminary injunction to suspend liquidation of customs entries subject to the IEEPA tariffs. The DOJ/Department of Justice opposed the injunction request citing that the Court has the authority to order reliquidation should the tariffs be deemed illegal by the Supreme Court. The DOJ also suggested that the court would be overwhelmed with additional requests and CBP would also be burdened to manage the suspensions. This outcome suggests that reliquidation will be an option to open entries for refunds when they are past their liquidation date and removes the option of filing for liquidation suspension. The next steps for importers remain under debate. Some customs attorneys believe that filing a court case will be the only option to receive refunds should the Supreme Court rule that the tariffs are illegal. Other attorneys are suggesting that other means will be available to obtain refunds and are taking a “wait and see” approach. Should filing a case be the only option to receive a refund, there should be a two year window from the date of the imposition of the tariffs, thus if you first paid IEEPA tariffs in April 2025, you will have until April of 2027 to file a case. WSSA collaborates with a variety of industry groups to obtain up-to-date information from customs and legal experts, and we will continue to keep a close watch on the situation
Continued Congestion & Blank Sailings in Europe: The situation is relatively unchanged in Europe and the UK, with the most serious congestion still in the ports of Southampton and Grangemouth. We expect to see more fluidity in Grangemouth in mid-January, but for now Southampton is the primary option for cargo moving out of Scotland and delays continue. This was exacerbated recently with a reduction in the time allowed for delivery of an export prior to departure, reducing the time from 10 days to 7 days. Additionally, there will be multiple ocean carriers cancelling sailings in mid-December and over the Christmas holiday, resulting in fewer sailings than usual from Europe to the USA. Out of 67 blank sailings reported across global trades in December and early January, over 30% are on the transatlantic trades. With that said, space remains available on vessels that are departing as cargo volumes remain on the low side. For any urgent shipments in the next few weeks, you will need to review available options, and please feel free to contact WSSA for any information on schedules.
Portugal Schedule Disruption: MSC is reporting schedule changes from Portugal due to ongoing issues with the port of Sines. We do not yet have specifics on the potential disruption and are checking daily for updates. MSC is the only direct service available from Portugal to the USA and is normally very reliable. We will report more next week as the situation evolves.
Italy Rail and Intermodal Update: Ocean carriers are continuing to charge fees based on congestion in both the rail and trucking sector with charges ranging from 50 to 100 euro per container, varying based on the port and ocean carrier. We expected these charges to drop off when rail construction projects were completed, but as of now, they are still active.
Canada Update: Alberta and Saskatchewan remain the only two provinces actively buying and selling USA alcohol. Nova Scotia, PEI, Newfoundland, Labrador and Manitoba are selling USA product that is sitting in their inventory with some profits going to charity. Ontario is holding firm and refusing to put USA alcohol on the shelves, with Ontario Premier Doug Ford stating that he prefers to support sales of Ontario producers, but he is open to moving USA products to other provinces. The situation remains very sensitive but reports indicate the USA alcohol put back on the shelves have been popular in local stores. WSSA will continue to work with industry organizations to push for a trade agreement that benefits both markets. The ban on USA alcohol by Canadian provinces has been a tough blow for USA producers, resulting in hundreds of millions of lost sales.
LCL Services from France, Italy, and Spain/Portugal: Bi-monthly departures continue from each of these countries for your small shipments, offering a per case rate from point of pick up to the Alba Wine and Spirits warehouse in Edison New Jersey. Shipments from other European countries can be added into the mix, with pick-ups offered in most European countries. Please let us know if you need any further information!
Protect Your Cargo from Low Temperatures: As we head into the colder months, make sure you are properly protecting your products from lower temperatures. Talk to us about insurance and options for winter wine transloading! Bringing products into warmer ports, such as Savannah, and loading into temperature controlled trailers for delivery into cold weather areas can be a lower priced option that shipping in reefer containers from origin point.
Happy Holidays from WSSA! WSSA offices will close at 12pm December 24th for the upcoming Christmas holiday and remain closed until Monday, December 29th. Wishing all of our members and partners a very happy holiday season!