Canada Tariff Deadline August 19: Talks Intensify, No Deal Yet
With five days left before the 50% tariff on many Canadian products, including beverage alcohol, negotiations are happening daily but no news on any agreement as of yet. Canada is reportedly willing to end provincial bans on U.S. alcohol sales, ease its retaliatory auto tariffs, and adjust dairy import quotas in exchange for the U.S. dropping the new 50% tariff and easing steel/aluminum duties. Canada’s lead negotiator has also warned that if the tariff hits as planned, it could stall talks altogether. If you have Canadian orders scheduled for late August, it’s still worth asking your supplier about shipping earlier.
Section 122 and Section 301 “Forced Labor” Tariff Updates
The Section 122 litigation is moving slowly, with no court date assigned for the case brought by the Liberty Justice Center. They are hoping for a November date and we will keep you updated with any news.
On section 301, the 25-state lawsuit challenging the forced-labor tariffs is officially filed as State of Oregon v. Trump in the Court of International Trade, led by Oregon, Arizona, and California. It joins two other pending challenges from small businesses. The case filed by the Liberty Justice Center has a tentative oral argument date scheduled in late September. We will continue to update as these cases go through the court system.
The Section 301 investigations related to excess capacity remain in pending status with no final determination or announcement on new tariffs. WSSA will be working with the Toasts Not Tariffs Coalition and supporting USWTA should any new tariffs announced impact the beverage alcohol industry.
IEEPA Phase 3 Refund Case
Importers with “finally liquidated” entries, those entries 80 days or more past the liquidation date that have not filed lawsuits, are still waiting for a process to obtain their refunds. Importers who filed lawsuits have been approved to process refunds. One avenue for other importers may be through a class action suit, but this needs to be approved. Last week’s class certification hearing (Aug 6) wrapped with no ruling yet. If the judge sides with the plaintiffs, non-litigant importers could get access to refunds through the CAPE portal without filing their own lawsuit, which is a big deal for anyone still waiting on a “finally liquidated” entry. We also hold out hope that the process will not require any legal action and CBP will be authorized to process the refunds automatically. We’ll flag it the moment there’s a decision.
Chile/Argentina Border Backlog
The Mendoza–Los Libertadores remains closed and the backlog is growing. The shut down due to bad weather and snowfall is one of the longest closures on record. There’s a backlog of roughly 3,000 trucks to clear, so even when the pass opens, the progress to move cargo to Chile will be slow. Options are available for re-routing cargo and please contact us if you have cargo stuck and need more information on the options.
Rhine Hits a New Record Low — Worse Than Last Week
The Kaub gauge dropped to about 15cm this week, below the previous record set in 2018 (25cm), and forecasters expect single-digit readings as the heat wave continues. Barge traffic is effectively stalled; cargo is shifting to truck, and Germany has relaxed weekend truck driving bans to help absorb it. Despite enabling trucks to travel on weekends, equipment availability is getting more limited and road and rail delays are growing. There is no rain in the forecast, and we may not see improvement until much later in the year. Plan for extra time and extra expense for anything moving through the hinterland.
North Europe “Peak Season”
Increased cargo volumes and reduced capacity, along with the issues creating delays in getting goods to the port due to the restrictions on the inland waterways, have created significant pressure on North Europe ports. Surcharges are in play as the carriers work to manage cargo volumes and capitalize on the tight market. September vessels are already heavily booked so plan ahead and provide as much notice as possible to insure your cargo moves on time. Antwerp port has advised that two terminals will be closed to trucks on Monday, creating a temporary point of congestion on the 17th.
Panama Canal Tightening Draft Limits Again
The Panama Canal Authority is cutting the maximum vessel draft again due to El Niño-driven low water. The draft will be down to 48.0 feet on August 26, then 47.5 feet on September 3. This is the fourth and fifth restriction of the year and ocean carriers are adjusting cargo loading accordingly. There is no word yet on reduced transit slots, but reduced loading is in play and schedule disruption and delays are expected.
Strait of Hormuz/Iran War impact:
The Strait remains virtually closed with continuing attacks on vessels despite the US naval presence. According to reports, two vessels have passed through the waterway today and between 5 and 9 vessels on other days this week. The normal number is above 100 ships per day before the war. Deals are consistently announced by the USA but just as consistently fall apart. While oil futures have ticked up, we have not yet seen any new fuel surcharges levied by the carriers.
Typhoon Snarls China Ports
Typhoon Dolphin hit China’s east coast August 9, shutting down terminals in Shanghai and Ningbo for three days and stranding an estimated 2.4 million TEU of capacity. Expect knock-on delays into late August as the backlog clears and this will likely ripple into schedules on Asia–Europe and transpacific routes too.
LCL Services from France, Italy, and Spain/Portugal – SUMMER UPDATE
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. For the summer months, all containers will be temperature controlled, ensuring your cargo is protected from summer heat. 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!