Consumer Product Safety Commission (CPSC) eFiling: Effective July 8, 2026

The Consumer Product Safety Commission will require e-Filing effective July 8, 2026.

At this point, obtaining an account with CPSC is still in a voluntary stage, but Thunderbolt Global Logistics, LLC highly recommends all importers to research if their products require CPSC eFiling per applicable U.S. Harmonized Tariff (HTS) numbers. The tariff numbers can be checked using CPSC’s Regulatory Robot Tool on www.CPSC.gov/eFiling. There are currently approximately 600 HTS codes that are flagged and require CPSC eFiling.

Importers are ultimately responsible for product certification; therefore, importers maintain the responsibility for complying with eFiling. Importers must know which of their import products require safety certificates, regardless of the HTS code’s inclusion on the list. The list can and will change throughout time. It is best for an importer to consistently check the HTS list to confirm if CPSC e-Filing applies to an importer’s product tariff number.

Importers need to self-register and create a Business Account by visiting CPSC’s website. The registry uses an invitation-based system that enables importers to invite their trade partners such as Customs brokers, suppliers, test laboratories, etc. to access and collaborate on certificate data. CPSC recommends importers to review eFiling Quick Start Guide to better understand the eFiling requirements for importers and the corresponding roles and responsibilities across trade partners. After the importer creates a Business Account, the importer can invite additional users from trade partner organizations. (Please note Thunderbolt Global Logistics, LLC will not be able to access an importer’s account with CPSC unless we are invited as a trade partner by the importer.)

The below webinar can assist importers when applying for an account with CPSC for eFiling.

CPSC Webinar | eFiling Is 6 Months Away

Additional useful pertinent information items are listed below:

-eFiling Document Library on CPSC.gov
-The Product Registry is a secure web application where importers can store Certificate of Compliance
data
-www.CPSC.gov/eFiling
-Sign up for the eFiling Mailing List -eFilingSupport@CPSC.gov
-CPSC Product Registry Training Videos
CPSC Product Registry | CPSC.gov
eFiling – CPSC’s Modern Approach for Filing Certificate Data | CPSC.gov
eFiling Frequently Asked Questions (FAQ) | CPSC.gov
Regulatory Robot
Children’s Product Certificate (CPC)
General Certificates of Conformity (GCC)

Thunderbolt Global Logistics, LLC requests all importers to let us know if they obtain an account with CPSC for eFiling.

Best Regards,

The Compliance Department
Thunderbolt Global Logistics, LLC

Suspension of ISPM 15 Hyphen Requirement Ended December 31, 2025

The temporary suspension of the International Standard for Phytosanitary Measures No. 15 (ISPM 15) hyphen requirement for the marking of wood packaging material (WPM) concluded on December 31, 2025.

Per the ISPM 15 regulations, WPM must be marked with the International Plant Protection Convention (IPPC) logo, the two-letter International Organization for Standardization (ISO) code for the country that treated the WPM, and the treatment facility number assigned by the national plant protection organization. The IPPC requires the ISO code and the treatment facility number to be separated by a hyphen (e.g., XX-000). CBP did not take regulatory action on shipments solely missing the hyphen after the country code since March 2025, but CBP will now implement the hyphen requirement as of December 31, 2025. All other ISPM 15 provisions have remained in effect during the suspension and will continue to be enforced.

Importers, trading partners, and wood packaging material manufacturers are encouraged to ensure markings are fully compliant with ISPM 15 Annex 2, including the required hyphen separating the two-letter country code from the producer code. This requirement is imperative to ensure compliance. See the above example.

Best Regards,

The Compliance Department
Thunderbolt Global Logistics, LLC

U.S. Customs ACE Portal Account for Importers

January 29,2026

Thunderbolt Global Logistics, LLC strongly encourages all importers to apply for an account with U.S. Customs ACE (Automated Commercial Environment) Portal. The ACE Portal is available at no cost. There are many benefits associated with having access to the ACE Portal.

-Streamlined Communication with U.S. Customs Inquiries
-Improved Compliance Management to Monitor Trade Activity
-Access to U.S. Customs Requests for Information/Forms (such as CF28s, CF29s, etc.)
-Centralized Management Tools to Create & Store U.S. Customs Real Time Data Reports
-Full Visibility of U.S. Customs Entries
-Ability to Track U.S. Customs Entry Liquidation Dates, Transactional & Financial Data
-Gather Data Information Across Multiple Partner Government Agency (PGA) Systems
-Receipt of ACH Refunds from U.S. Customs

The below link offers guidance how to apply for an account with the U.S. Customs ACE Portal.

https://www.cbp.gov/trade/automated/getting-started/portal-applying

Beginning February 6, 2026, U.S. Customs will only issue electronic refunds. It is highly recommended every importer set up an ACE Portal account with ACH bank information to receive U.S. Customs refunds and to gain tracking access of entry liquidation dates. All applicants are required to use a U.S. bank account. If an importer has a foreign bank account, the foreign bank must have a U.S. correspondent bank that can accept ACH via a U.S. ABA Routing Number in U.S. dollars. Failure to sign up for an ACE Portal account and provide ACH bank information will result in issued refund rejections.

See below FR Document: 2025-24171 (91 FR 21) published in the Federal Register 1/2/2026.

Federal Register :: Electronic Refunds

Contacts for Assistance:
-ACE Account Service Desk (ASD) at phone: 866-530-4172
-ace.support@cbp.dhs.gov & revenuerefunds@cbp.dhs.gov

CBP Resources: ACE Portal Access and ACH Refund Enrollment

· NEW! ACE Portal and ACH Refunds FAQs
· Reference Sheet: ACH Refund Enrollment Overview
· January/February User Support Call Information: ACH Refund Enrollment Support Call Schedule
· Information Notice: ACE Portal Updates to Enable Electronic Refund Enrollment
· Information Notice: Automated ACE Portal Application for Importer Accounts
· Information Notice: ACE Portal Feature for Trade Users to Add Notify Parties
· Training Guide: ACH Refund Enrollment in the ACE Portal
· Training Guide: ACE Portal Feature to Add Notify Parties

If your company obtains an account with the U.S. Customs ACE Portal, Thunderbolt Global Logistics, LLC requests to be notified for our internal records.

Please contact our Compliance Department (compliance@thunderboltglobal.com) if there are any questions.

Best Regards,

The Compliance Department
Thunderbolt Global Logistics, LLC

Trump Tariff Talk

Is everyone having fun keeping track of the tariffs that the Trump Administration has implemented since April?   The uncertainty that has been with us since Jan. 20th when President Trump was sworn in as President has not gone away.    The tariff announcements have been like a merry-go-round of starts and stops.

The pause on the higher reciprocal tariffs for most countries will end at midnight Thursday for those countries that have not struck a deal with the Trump Administration.     There weren’t 90 deals in 90 days that was promised.  It’s more like 6 deals (United Kingdom 10%, Indonesia 19%, Philippines 19%, Japan 15%, Vietnam 20% and the European Union 15% (announced yesterday).  These tariff rates are on top of the actual duty rate for that particular harmonized tariff code.  These are some of our key trading partners, but many deals still need to be done.

August 1st is this Friday and countries that have not made deals (China is August 12th) with the Administration will see their tariff rate go up at 12:01 AM.  That’s the day the pause on the additional higher reciprocal tariffs will end.    The initial reciprocal tariff rates have been adjusted per letters that were sent by President Trump to each country.

We do hope these deals lead to more opportunity for U.S. Exporters.   This is a key component and we hope it will impact small to medium size exporters and not just Boeing and large chemical companies like DuPont.

The deals that have been reached reduce tariff rates considerably from the proposed tariff rate but it’s still going to add significant costs to importers large and small.   It’s essentially a Value Added Tax (VAT) but it can’t be reclaimed like it does in countries that have a VAT system.    It remains to be seen if inflation rises over the last half of the year.

The NCBFAA (National Customs Brokers & Forwarders Association) has put together a pdf document that can be used a guideline.    We have enclosed it for your review.

Here below is what is fully in place right now.  

New Reciprocal Tariffs (initial full executive order can be found here)

  • 10% Baseline Tariff that applies to almost all imports to the U.S. with some exclusions. This went into effect April 5, 2025, at 12:01am ET. These are still in effect.
  • Reciprocal Country-Specific Tariffs: Higher tariffs on imports from specific countries.

For countries that have yet to secure a deal with the U.S., here are the tariff rates set to take effect on Aug. 1,2025.   This is not a full list of countries but most mainstream trading partners.

  • Canada: 35 percent
  • Mexico: 30 percent
  • South Korea: 25 percent
  • South Africa: 30 percent
  • Kazakhstan: 25 percent
  • Laos: 40 percent
  • Malaysia: 25 percent
  • Myanmar: 40 percent
  • Tunisia: 25 percent
  • Bosnia and Herzegovina: 30 percent
  • Bangladesh: 35 percent
  • Serbia: 35 percent
  • Cambodia: 36 percent
  • Thailand: 36 percent
  • Libya: 30 percent
  • Iraq: 30 percent
  • Algeria: 30 percent
  • Moldova: 25 percent
  • Brunei: 25 percent
  • Sri Lanka: 30 percent
  • Brazil: 50 percent   *****See note below

Copper will have  50% tariff effective August 1st.

On June 4th Steel and aluminum tariffs for certain products and derivatives rose from 25% to 50% except for the United Kingdom which remains at 25%.    These tariffs are not part of any agreement that the administration makes.  They will be in place beyond August 1st.

  • Exclusions from the above tariffs include
  • Items already covered under Section 232: steel, aluminum, automobiles, and auto parts
  • Food, medicine, and humanitarian goods (per 50 USC 1702(b))
  • semiconductors, lumber
  • Pharmaceuticals
  • Precious metals
  • Energy and critical minerals not available in the U.S.
  • Canada and Mexico
  • USMCA-compliant goods: 0% tariff
  • Non-USMCA goods: 25% tariff
  • Steel & Aluminum 25% tariff
  • Non-USMCA energy/potash: 10% tariff

See the list of tariff numbers on Annex II Annex II

The country of most concern is Brazil because the rationale for their 50% tariff is political not economic as the United States has a trade surplus with Brazil.    We don’t know if this 50% tariff is a reciprocal tariff like the others or something else.    The details are not known as of this time.    Actually, the details of all of the announced deals have not been released by U.S. Customs    The trade has not been given any information on how to enter goods from any country as of August 1st.   This is a concern given that Trump Administration has announced there will be no extension of the August 1st deadline.   Software providers that Customs Brokers utilize need to have the required programming in place so that goods can be entered correctly and in compliance with all applicable regulations.

**Importers should take note that Annex II states that “the formal language in Annex III governs the tariff treatment of products covered by the action,” even though no Annex III is referenced in the Order.  Annex III has finally been published and summarizes the tariff implementation.

https://www.whitehouse.gov/wp-content/uploads/2025/04/Annex-III.pdf

Due to the increase in tariffs, Thunderbolt Global Logistics is recommending that importers obtain their own account with U.S. Customs and pay their duties directly.   Foreign based importers can obtain their own ACH account with U.S. Customs.

Here is the link to the CBP website that gives instructions on how to apply.

https://www.cbp.gov/trade/trade-community/automated/automated-systems/gs-automated-systems/ach/signing

Once you are approved, we need to know your PUN (Payer Unit Number). It takes about 2-3 weeks to get approved.

Thunderbolt Global Logistics will be adding a 2% administration fee for all duties that we outlay on behalf of the importer.  Any import shipment that has total customs duties over $10,000.00 will need to be paid 5 days prior to arrival for sea shipments.

We will continue to monitor the situation closely.

If you have any questions, please contact compliance@thunderboltglobal.com

Thank you very much.

Jim Shapiro

Update on New Tariffs by the Trump Administration Announced effective April 9,2025

The day that the additional higher reciprocal tariffs are effective has arrived.   We had sent out the list of additional tariffs last week that would be effective April 9th at 12:01 AM.   The stunning news prior to the tariffs being effective was that President Trump was adding an additional 50% tariff from China due to their adding a 34% tariff on American goods imported into China.  In summary, goods being imported from China will have additional tariffs of 20% + 34% and 50% if the tariff number is not on the Annex II exception list.    We do feel for our toy importers and any other client importing from China.  .

Here below is what is fully in place right now.  

New Reciprocal Tariffs (full executive order can be found here)

  • 10% Baseline Tariff that applies to almost all imports to the U.S. with some exclusions. This went into effect April 5, 2025, at 12:01am ET.
  • Reciprocal Country-Specific Tariffs: Higher tariffs on imports from specific countries. These are listed on Annex 1. You can read the specific countries and rates here.

These went into effect April 9, 2025, at 12:01am ET.    Add the 50% additional tariff from China.

  • Exclusions from above tariffs include
  • Items already covered under Section 232: steel, aluminum, automobiles, and auto parts
  • Food, medicine, and humanitarian goods (per 50 USC 1702(b))
  • Copper, semiconductors, lumber
  • Pharmaceuticals
  • Precious metals
  • Energy and critical minerals not available in the U.S.
  • Canada and Mexico remain unchanged
  • USMCA-compliant goods: 0% tariff
  • Non-USMCA goods: 25% tariff
  • Non-USMCA energy/potash: 10% tariff

See the list of tariff numbers on Annex II: Annex II

Again, the effective date of these tariffs is as follows:  Goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. eastern daylight time on April 5, 2025, and entered for consumption or withdrawn from warehouse for consumption after 12:01 a.m. eastern daylight time on April 5, 2025, shall not be subject to the additional 10%  duty. Goods must be loaded AND in transit to be relieved of the duties going into effect on April 5th and April 9th.  The shipment must be on a direct vessel sailing to the USA and arrive by May 27,2025 to utilize the exemption.

On April 9, the enhanced reciprocal tariff rates will used instead of the base line tariff of 10% for most countries.  See the list.

**Importers should take note that Annex II states that “the formal language in Annex III governs the tariff treatment of products covered by the action,” even though no Annex III is referenced in the Order.  Annex III has finally been published and summarizes the tariff implementation.

https://www.whitehouse.gov/wp-content/uploads/2025/04/Annex-III.pdf

Due to the huge increase in duties from most of our major trading partners Thunderbolt Global Logistics will require that all customs duties over $15,000.00 will need to be paid 5 days prior to arrival for sea shipments.  Alternatively, importers can pay their duties direct to U.S. Customs. More on this new policy will be sent to our clients/agents on April 14th.

If you have any questions, please contact compliance@thunderboltglobal.com

Thank you very much.

Jim Shapiro

Update on New Tariffs by the Trump Administration Announced on April 2,2025

“Liberation Day” has come and gone and global trade looks a lot different now.   What happened on April 2nd was a day that shocked the world.   The full scope and how the tariffs will be implemented has not been finalized by U.S. Customs.    The Government is still working on it.   We expect to see a message giving guidance on Friday since the baseline tariffs go into effect on Saturday at 12:01 AM.

Here is information that we know as of the end of the day on Thursday April 4th.

Wednesday afternoon after the financial markets closed in the United States, The Trump Administration announced two categories of sweeping reciprocal tariffs affecting nearly all countries and products.

New Reciprocal Tariffs (full executive order can be found here)

  • 10% Baseline Tariff that applies to almost all imports to the U.S. with some exclusions. This will go into effect April 5, 2025, at 12:01am ET.
  • Reciprocal Country-Specific Tariffs: Higher tariffs on imports from specific countries. These are listed on Annex 1. You can read the specific countries and rates here.

These will go into effect April 9, 2025, at 12:01am ET.

  • Exclusions from above tariffs include
  • Items already covered under Section 232: steel, aluminum, automobiles, and auto parts
  • Food, medicine, and humanitarian goods (per 50 USC 1702(b))
  • Copper, semiconductors, lumber
  • Pharmaceuticals
  • Precious metals
  • Energy and critical minerals not available in the U.S.
  • Canada and Mexico remain unchanged
  • USMCA-compliant goods: 0% tariff
  • Non-USMCA goods: 25% tariff
  • Non-USMCA energy/potash: 10% tariff

See the list of tariff numbers on Annex II Annex II

The effective date of these tariffs is as follows:  Goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. eastern daylight time on April 5, 2025, and entered for consumption or withdrawn from warehouse for consumption after 12:01 a.m. eastern daylight time on April 5, 2025, shall not be subject to the additional 10%  duty. Goods must be loaded AND in transit to be relieved of the duties going into effect on April 5th and April 9th.   Air shipments do not have any transit exception.     If the plane lands on April 5th the base line tariffs are in effect for all countries.

*The Executive Order does not explicitly state whether, on April 9, the enhanced reciprocal tariff rates will be added to the baseline 10% rate OR will instead replace the baseline 10% rate. Additional clarification from the Administration will be necessary.

**Importers should take note that Annex II states that “the formal language in Annex III governs the tariff treatment of products covered by the action,” even though no Annex III is referenced in the Order and no Annex III has been otherwise posted or published.

Friday will hopefully give us more clarity on what the Government is doing.

Due to the huge increase in duties from most of our major trading partners Thunderbolt Global Logistics will require that all customs duties over $15,000.00 will need to be paid 5 days prior to arrival for sea shipments.  Alternatively, importers can pay their duties direct to U.S. Customs. More on this new policy will be forthcoming soon.

If you have any questions, please contact compliance@thunderboltglobal.com

Thank you very much.

Jim Shapiro

Thunderbolt Global Logistics Information about New Tariffs by the Trump Administration

March 4, 2024

Today is the day that new tariffs from Canada, Mexico and China are in effect.    All imports from Canada will now have an additional 25% tariff with the exception of energy imports which will be at 10%.  Imports from Mexico will have an additional 25% tariff on all imports with no exceptions.    An additional 10% tariff on imports from China are now in effect.   This is on top of 10% tariffs that went into effect February 4,2025.   Here are some links to follow.

Mexico               Canada                China and Hong Kong

This is the official statement from The White House last month.

The extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency under the International Emergency Economic Powers Act (IEEPA).

  • Until the crisis is alleviated, President Donald J. Trump is implementing a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China.  Energy resources from Canada will have a lower 10%

These tariffs will remain in place until President Trump feels that each country is doing what is necessary to stop the influx of fentanyl into the U.S.A.   Until then uncertainty reigns and the impact on the economy will be felt immediately.

The increase in tariffs will lead to higher costs for the American public and will create inflationary pressure on the economy.  It’s a policy that has not worked historically.

The steel and aluminum tariffs that are proposed go into effect at 12:01 Eastern Time on March 12th from all countries around the world with no exceptions.

On February 10, 2025, President Trump issued two proclamations – Adjusting Imports of Aluminum into the United States and Adjusting Imports of Steel into the United States – modifying the steel and aluminum tariffs that he had originally imposed in 2018 under Section 232 of the Trade Expansion Act of 1962.

The new action expands the original Section 232 tariffs by (i) ending all country exemptions, phasing out the specific product exclusion process, and terminating all existing General Approved Exclusions (GAEs); (ii) raising the aluminum tariffs from 10% to 25%; (iii) adding more downstream steel and aluminum products to the tariffs’ coverage; (iv) and creating an exemption process for imported derivative articles made from steel “melted and poured” and aluminum “smelted and cast” in the United States.

The Federal Register notices on Steel and Aluminum will be published on March 5. They are available today for review and we have attached them for your reference.

In summary,

Steel

March 12 is the effective date for 25% tariffs on the original steel products and derivatives plus the NEW list of derivative products classified in HTS Chapter 73

  1. The effective date for 25% tariffs on NEW derivative steel products listed but not classified in HTS Chapter 73 will be determined by the Secretary of Commerce when a system is in place to collect the duties on those product. The additional duty shall only apply to the declared value of the steel content of the derivative article. The quantity of the steel content shall be report in KG.
  2. All Imports of derivative products shall provide any information that may be required by Customs and Border Protection (CBP) to permit administration of the duties.

A duty exemption applies ONLY to the NEW list of derivative products provided the product was processed in another country from steel articles that were melted and poured in the U.S.  N.B. this same exemption does not apply to steel articles and derivatives on the ORIGINAL lists.

Aluminum

March 12 is the effective date for 25% tariffs on the ORIGINAL aluminum products and  derivatives plus the NEW list of derivative products classified in HTS Chapter 76.

  1. The effective date for 25% tariffs on NEW derivative steel products listed but not classified in either HTS Chapter 76 will be determined by the Secretary of Commerce when a system is in place to collect the duties on those product. The additional duty shall only apply to the declared value of the aluminum content of the derivative article. The quantity of the aluminum content shall be report in KG.
  2. Note that importers are required to report to CBP the primary country of smelt, secondary country of smelt, and country of cast on imports of all aluminum articles subject to the aluminum and aluminum derivatives Section 232 measures. In addition, all Imports of derivative products shall provide any information that may be required by CBP to permit administration of the duties.
  3. A duty exemption applies ONLY to the NEW list of derivative products provided the product was processed in another country from aluminum articles that were smelted and cast in the U.S. NB. this same exemption does not apply to aluminum articles and derivatives on the ORIGINAL lists.
  4. If the products are from Russia, or any amount of primary aluminum use to make the article is smelted in Russia or cast in Russia, it is subject to 200% tariffs. In addition, the same exemptions under HTS Chapter 98 do not apply the same way as to other origin goods.

The President could change his mind and delay these tariffs but it’s unlikely.   These tariffs will add more cost for manufacturers in the United States that use foreign steel and aluminum in their manufacturing process.     Again, the consumer will ultimately pay for most of the tariff increases as prices for goods and services will go up.     With these higher duties we may require advance payment of duties if an importer does not have their own ACH account with U.S. Customs.  We suggest that importers with commodities that fall under these tariffs pay their duties direct to U.S. Customs.

We will continue to monitor the situation closely.   If you have any questions please send a message to compliance@thunderboltglobal.com

Thank you very much.

Thunderbolt Global Logistics 2024 End of Year International & Domestic Transportation Update

December 30,2024

The year is ending the way it began with lots of uncertainty in the shipping world.  The Houthi’s in Yemen are still attacking vessels in the Southern Red Sea.  This is causing most ocean carriers to divert vessels around the Cape of Good Hope.   An ILA (International Longshoreman’s Association) strike along USA East Coast & Gulf Coast is now looking very likely at midnight on January 15,2025.   Part II of The Trump Presidency Part will begin again on January 20th with the threat of increased tariffs on imports from all over the world.     No region of the world is safe from his threats.   Even our largest trading partners (Canada and Mexico) are in his sights for additional tariffs.

The most concerning issue right now is the looming ILA (International Longshoremen’s Association) strike at nearly all USA East Coast and Gulf Coast ports.   If it happens it will be a major disruption in ocean shipping.   The deadline is midnight on January 15th.  The 3-day strike back in early October was painful but carriers and ports rebounded quickly.  The wage issue was settled but the automation issue at the terminals is the key point that the ILA and United States Maritime Alliance Ltd. (USMX) must work out.  There are no negotiations going on at this time and the deadline is just over 2 weeks away.   Ocean carriers are developing contingency plans if there is a strike.

There is no election around the corner like there was in October. President Elect Trump is firmly on the side of the ILA. The ocean carriers are sounding like they are not going to give in to the ILA demands of no automation at the port terminals.  The 11 main ocean container carriers are foreign owned, and they will get very little sympathy from the U.S. Government and U.S. Public.    A strike of more than a few days will cause weeks of congestion and delays.    It will greatly impact the U.S. economy in a negative way.   There aren’t many other shipping options to the East and Gulf Coast.    Using Canadian ports is an option where it makes sense, but Canada has their own labor issues at their ports too.   Space is also tight via Montreal, Quebec, St. John New Brunswick and Halifax Nova Scotia.

Ocean carriers are already publishing proposed surcharges that would go into effect if there was a strike in excess of $1500.00 per 40’ container.   LCL carriers are doing the same and could charge up to $50.00 w/m if there is a strike.    Importers and exporters will see higher shipping costs if the strike does happen.

OCEAN CARRIER ALLIANCES ARE CHANGING IN 2025

The ocean carrier alliances are going to play musical chairs in early 2025.   The divorce between Mediterranean Shipping Company (MSC) and Maersk Line will become final on February 1st.    MSC will operate as a standalone carrier with no primary carrier partner.   The marriage of Maersk and Hapag Lloyd will commence on February 1,2025 under the “Gemini Cooperation” agreement.     Hapag Lloyd will withdraw from their partnership with Yang Ming Lines, Ocean Network Express and Hyundai Merchant Marine.   Yang Ming Lines (YML), Ocean Network Express (ONE) and Hyundai Merchant Marine (HMM) will now brand themselves as The Premier Alliance.    Evergreen Lines, CMA CGM, Cosco Shipping and OOCL Lines is now called The Ocean Alliance.   Their agreement is in place through 2032.    Zim Lines is operating independently in many trade lanes.   Zim also has an agreement with MSC in the Transpacific.

EUROPE TO THE UNITED STATES

Space is tight from Europe due to the potential ILA strike and possible tariffs on European imports.

Import rates have also been climbing but not to the same extent as they are from the Far East.

The upcoming changes in the ocean carrier alliances will cause some vessel scheduling issues.    We can expect some service disruption in late January and February as the new partners start working together.

Hapag Lloyd and Maersk Lines Gemini Agreement will call The Port of Baltimore when they begin their partnership from North Europe, Italy (Via Tanger Morocco) and several ports in China.      This will be a big positive for the port and for importers and exporters.   This is especially true for out of gauge (OOG) cargo that would ship on flat rack or open top containers.   Hapag Lloyd is a strong carrier for OOG cargo.    They have very good availability of equipment.

Yang Ming Lines has announced that their AL2 service will start calling the Port of Baltimore in February.

Ports calls in Europe are Southampton, Rotterdam, Antwerp, Bremerhaven and Le Havre.  It’s unclear at this time if their Premier Alliance Partners will also join this service or if they will partner with other carriers.

The RO/RO mafi carriers that call North Europe are for the most part back to handling heavy, wide and tall cargo.  The Port of Baltimore is still the number 1 port for RO/RO cargo, and with that static cargo can ship to Baltimore for delivery to points in the Midwest for imports, and for exports out of the USA Midwest to destinations in Europe and elsewhere.

ASIA to the UNITED STATES

Imports from Asia are hot again after a brief cooling off period in November and early December.

Vessel space right now is very tight from all origins in Asia to the West Coast and East Coast.

The increased volume via the West Coast has led to rail delays going into the Midwest.

As written earlier the rates will continue to climb until Chinese New Year and then they should moderate.

If there are tariff increases from China when the Trump Administration takes office, this will impact volume to the U.S.A.   Carriers will still use blank sailings as a way to create artificial demand when they deem it necessary.

LATIN AMERICA TO/FROM THE UNITED STATES

Rates are still strong from South America, especially Brazil to the USA.   Space is tight due to a lack of capacity.     Port congestion in Brazil is causing vessel delays going northbound.   Southbound rates are stable and carriers are looking for cargo.

EXPORT FROM THE UNITED STATES

Ocean export volume from the United States is stronger now but that could change if trade wars erupt in 2025.    Countries will implement tariffs against U.S. products if the U.S. does the same to them.   Carriers are actively looking for freight to fill their ships.

Empty container availability at inland rail depots can vary by carrier and rail depot.   Empty containers are dependent on imports at nearly all inland depots.     If imports drop due to higher tariffs it could lead to equipment shortages at inland depots.

Vessel schedule integrity is still an issue.  This will most likely persist well into 2025.  An ILA strike will lead to vessel bunching as they wait for the strike to end.

Special equipment (open top and flat rack containers) can be scarce at some ports (Baltimore in particular), so the earlier we can book space and secure equipment, the better off we and you are.

TRUCKING ISSUES IN THE UNITED STATES

Container drayage at most ports and railroads are still fluid with no discernible issues with capacity.  If there is a strike in January all bets are off regarding truck capacity.   It will tighten up quickly if there is a strike.    Importers will likely see an increase in demurrage costs if the ports become very congested.

This needs to be watched very closely.

Flatbed trucking is in relatively good shape around the country.  We have not seen areas where we cannot find available trucks.

Heavy haul capacity is also still in relatively good shape.  There is still a lot of cargo being shipped requiring multi-axle trucks. There are energy and infrastructure projects that are keeping the heavy haul truckers busy.

WHAT DO WE RECOMMEND

Continue to plan ahead.     We hope that the ILA and USMX can reach an agreement before the January 15th midnight deadline.

We always must be ready for the unexpected.  We ask all our customers and overseas partners to keep in close contact with us so we can help you transport your shipment from Point A to Point B.

WHAT IS THUNDERBOLT GLOBAL LOGISTICS DOING?

We are still working hard every day to make sure the freight keeps moving.  We are constantly checking on every shipment to make sure there are no delays.    We’ll watch the ILA/USMX negotiations closely.  We’ll wait and see if increased tariffs will come into effect when President Trump takes office January 20th.

We are grateful for all the support we receive from around the USA and around the world. Please contact us if you have any questions or need more information.

We hope everyone had a Merry Christmas, Happy Hanukkah and will have a safe New Year.  All the best for 2025!

Jim Shapiro, Director

 

Thunderbolt Global Logistics Late August 2024 Transportation Update

August 20,2024

We are now in what we call the dog days of August.    Summer holidays are ending, school is about to start, football in Europe has just begun their season and the NFL is going to start in early September.

The word of the day/week/year is disruption.  Here is the definition of disruption.

Disturbance or problems which interrupt an event, activity, or process

There seems to be a new disruption going on in global shipping every week.

  • On August 12th a container of hazardous materials blew up at the Port of Ningbo.
  • Ports in India may strike August 28th after 3 years of negotiations 
  • Brazil is facing massive port congestion and a surge of exports that has driven ocean freight rates to near Covid levels.  
  • The Red Sea situation has not changed and few vessels are transiting the Suez Canal and going around The Cape of Good Hope.       
  • A nationwide rail strike in Canada is likely to happen beginning this Wednesday August 22nd.   
  • The biggest potential disruption Is an impending strike at nearly all U.S.A.  East Coast and Gulf Coast ports when the ILA (Int’l Longshoreman’s Association) contract expires at midnight on Sept. 30th.      

The master contract for the ILA covers ports from Boston to Houston with few exceptions.    There hasn’t been a strike on the East Coast in over 45 years.   That may change based on what is being said by the leadership of the ILA.    The Biden Administration may have to get involved.   They have largely stayed on the sidelines so far.

Cargo handling at the ports would halt just weeks before the U.S. presidential election.  Here are statements from both sides in the negotiations:

The United States Maritime Alliance, known as USMX is ready to continue bargaining with the ILA leadership.   They state that their latest offer to longshoreman includes “industry -leading wage increases” and retains the current contract’s language on automation at the port terminals.

The ILA contends that shipping CEO’s are “taking home bonuses in the billions” and ocean carriers are raking in profits by “raising rates on their customers due to global conflicts or natural disruptions.”

The West Coast ports avoided a strike last year when they struck a deal on August 31,2023 that gave dock workers a 32% salary increase over the span of the 6-year contract.    The ILWA worked without a new contract as negotiations took place.  The ILA is looking to beat that increase for its members.  

They have stated that they will not work beyond the expiration of the contract.  Their members are preparing for a strike.   It doesn’t look good.

This is the situation in Canada.  The CIRB has made a ridiculous ruling that will greatly impact the Canadian and U.S. economies.   Here is what is happening;

With the Aug. 9 Canada Industrial Relations Board (CIRB) decision that none of the services provided by the two Canadian railways—CN and CPKC—are essential by law, no rail services are required to be maintained in the event of a work stoppage involving the Teamsters Canada Rail Conference (TCRC). The earliest possible date of a work stoppage is now Aug. 22 at 12 a.m. ET, and CN and CPKC are preparing their operations for ceased services.

In addition to the embargoes on Rail Security-Sensitive Materials (RSSM), Poison Inhalation Hazard (PIH) – Toxic Inhalation Hazard (TIH) and Time-Sensitive commodities issued on Aug. 12, CN announced a staggered schedule of embargoes for other freight handled by its network:

  • All temperature-controlled intermodal traffic, effective Aug. 15. (Exact timing is dependent on origin and destination.)
  • All hazmat traffic, effective Aug. 15. (Exact timing is dependent on origin and destination.)
  • All intermodal traffic destined to all points in Canada from U.S. origins or U.S. interchange, effective Aug. 16 at midnight ET.
  • All U.S. to U.S. Intermodal shipments will continue to move per normal operations.
  • You can also find CN’s embargo schedule, as well as intermodal origin/destination timing, here.  
  • “If a settlement is reached, or an arbitration process is established, we will remove embargoes and resume normal operations,” CN said in a statement.

No work stoppage planning schedule has been made available by CPKC at this time, but check the railroad’s website for updates here.

Here is the current situation in Brazil regarding congestion at the main port of Santos and at the Port of Itapoa.

An example of the situation is the BTP terminal, one of the most important in the Santos port complex.  The main terminals have been operating at close to 100% capacity for several months.

This has mainly affected export shipments, as terminals do not have sufficient windows to release appointments for truck drivers to deliver containers within the deadlines determined by maritime transport companies for shipment.

The possible consequences of this problem have been extra costs for truck drivers for not being able to deliver the loaded containers to the factories and the transfer of reserves to the next ship, as it is impossible to meet the deadlines given by the transporters.

Itapoa port terminal in the State of Santa Catarina has been facing similar congestion issues, but today it is not so critical as in Santos due to the lower volume of container handled in this port.

EUROPE TO THE UNITED STATES

Space has tightened up the United States in anticipation of the strike by the ILA at the end of September.

Rates have climbed and carriers will try to take advantage of the situation.   Some carriers have reduced the vessel size to the USA and redeployed them to Asia- Europe trade.    

ASIA to the UNITED STATES

Imports from Asia are very strong and have been for the last 4 months.    The possible strike along with additional tariffs for some commodities from China have led to a surge of cargo.    Ocean rates have tripled since earlier in the year.   Rates have stabilized over the last 2 weeks but they are still at the highest levels seen since Covid times.    West Coast ports will see more cargo due to the potential strike on the east coast and this will lead to rail delays from all west coast ports. 

The low water issue at the Panama Canal has improved a lot and the canal is nearly back to normal vessel transits per day.   This is a welcome relief after months of fewer daily transits through the Canal.

EXPORT FROM THE UNITED STATES

Ocean export volume from the United States is stronger now and space is tight to some regions of the world.   This is especially true to the Middle East due to the Red Sea situation.  

Empty container availability at inland rail depots is still problematic in some locations.  Chicago has deficits in available 40’ HC containers for many carriers.  Container availability is dependent on import shipments arriving at inland locations.  Ocean carriers rarely, if ever reposition empty containers to inland locations.

RO/RO carriers are accepting more and more static cargo to load on their vessels.   This is a turnaround from earlier in the year when they had no space available.          

PORT CONGESTION N THE UNITED STATES

New York seems to be the port on the east coast that is experiencing congestion.   Some truckers are charging congestion surcharges.  West Coast ports are likely to see a surge of containers due to the potential strike at the end of September. The upcoming rail strike in Canada has led to cargo diversion to U.S. west coast ports.We are grateful for all the support we receive from around the USA and around the world.  This is especially true during the period when the Port of Baltimore was closed due to the Key Bridge accident.

Please contact us if you have any questions or need more information. 

Be safe!

Jim Shapiro, Director