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

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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on the final mode of transit before 12:01 a.m. eastern daylight time on April 5, 2025, and entered for consumption or withdrawn from warehouse for consumption after 12:01 a.m. eastern daylight time on April 5, 2025, shall not be subject to the additional 10%  duty.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

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“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

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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

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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

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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

Thunderbolt Global Logistics 2023 End of Year International & Domestic Transportation Update

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The year is ending in a turbulent way in the world of shipping.  War in the Middle East and Europe along with drought conditions in Panama have drastically impacted the maritime industry.  2024 is going to start off with a lot of uncertainty with the ocean carriers, especially on trade routes that utilize the Suez Canal and Panama Canal.

Looking back, 2023 started off with available capacity in most forms of transportation.  Space was not an issue from Asia to the U.S.A.  Rates were falling.  Truck capacity was available in most markets.  Port congestion was spotty.  Chassis were not always plentiful but there wasn’t a chronic shortage like there was in 2022.

Space was still tight from Europe, and RO/RO carriers that handle static cargo were booked out for month.   Rates came down from Europe in the summer and kept falling into the fall.  Space has opened up with the RO/RO carriers.

Some of the issues that haven’t gone completely away are:

  • High diesel fuel costs. Truckers are still charging fuel surcharges up to 40% or more in some markets.  Until diesel fuel costs go down, the fuel surcharges will remain high.
  • Return of empty import containers back to the terminal. In some ports there are restrictions on returning empty containers due to a lack of appointment availability.  Truckers have to hold the empty container until they can obtain an appointment to return it.  This adds costs to an import delivery.
  • Rail delays are happening from the west coast of the USA to the Midwest. Long Beach is having issues right now due to more volume being routed through the west coast due to delays at the Panama Canal.
  • Rail delays from Montreal going to the Midwest (Detroit/Minneapolis/Chicago) are really bad right now as the year ends.

VESSELS RE-ROUTING AWAY FROM THE SUEZ CANAL AND RED SEA VIA CAPE OF GOOD HOPE (COGH)

An escalation in drone and missile strikes on maritime ships passing through the Bab al-Mandab Strait at the southern mouth of the Red Sea has created uncertainty for global supply chains.  This has left shippers on the Asia-to-Europe trade lane, and to lesser extent, on the Asia-U.S. east coast, facing the possibility of sharp increases in ocean freight rates as most ocean container carriers re-route vessels around the Cape of Good Hope to avoid the Suez Canal.  This will add 3 plus weeks of transit time and add’l costs.  This is especially true for shipments to Europe.  This could add inflationary pressure if ocean rates go up sharply.

Operation Prosperity Shield was created just over a week ago in light of the continued attacks on commercial maritime traffic in the region.  This is an enhanced naval protection force operating in the southern Red Sea in an attempt to ward off mounting attacks from Yemen’s rebel Houthis on merchant shipping.  Houthis have been launching drone and missile attacks from the areas of Yemen they control.  They have also captured a few vessels and are holding them hostage.  This is in response to the war in Gaza.  They are firing on any vessel they believe has Israeli ownership or will call on an Israeli port.  A lot of the data they are referencing is old and is inaccurate.  Vessel and crew safety is of the utmost importance.  Hopefully, the show of force will reduce/eliminate these attacks.

Countries besides the U.S. participating in the effort include Bahrain, Canada, France, Italy, The Netherlands, Norway, Seychelles and Spain.  Saudi Arabia and Egypt are not participating which is disappointing.  More countries should participate as 15% of world trade passes through the Suez Canal.

Maersk Line has just announced they will resume utilizing the Suez Canal route with this added protection.  CMA CGM is allowing some of their ships to pass through the Suez Canal with protection from French Naval forces.  As of this writing, the other major container carriers have not changed their plans.  Hapag Lloyd and Mediterranean Shipping have rerouted all their vessels and are sailing around the Cape of Good Hope (South Africa).

EUROPE TO THE UNITED STATES

Space is readily available on container vessels from Europe to the United States.  Some capacity has been withdrawn due to the downturn in rates.  We are seeing delays out of Poland on feeder vessels that marry up with the main vessels sailing to the USA from Rotterdam or Hamburg/Bremerhaven.  Vessel schedule integrity is still a problem nearly everywhere as we see delays regularly from most European ports.

The RO/RO mafi carriers that call North Europe had space issues throughout most of 2023.  We did see space open up in the latter part of the 4th quarter.  We do hope that this situation continues to improve in the 1st quarter of 2024.  They are critical to moving oversize cargo on their vessels.  The Port of Baltimore is 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.

The availability of empty containers at inland depots in Europe can be challenging.  It can vary from week to week.  The ocean carriers’ control what they want to do with the equipment.  When needed, our partners in Europe will pick up empties as close to the loading location as possible.

Hopefully we will see rate stability from Europe in 2024, but the situation in the Red Sea could cause rates to go up from Europe too.

Thunderbolt Global Logistics Receives a 2023 Regional Award for The Americas from The Project Cargo Network

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Thunderbolt Director Jim Shapiro attended the 12th Annual Summit of the Project Cargo Network (PCN) that took place at The Royal Cliff Hotel in Pattaya, Thailand, from November 12th to 14th. 185 people from 60 countries attended the meeting. PCN knows how to organize a great meeting. Thanks to Rachel, Judith and the Team in London for putting together a great 3 days in Pattaya.

It was a great time starting with  golf at the Chee Chan Golf Resort on Sunday. The dinner and fireworks Sunday night were fantastic. Thanks Patrik Eckert for sponsoring the festivities. Our meetings on Monday got underway with our CEO Rachel Crawford opening the conference meetings with an update on the network and then handing out the awards from the survey that was sent to all the members.

Thunderbolt Global Logistics was given the Regional Award for The Americas as voted by the members of the network. We are once again honored and humbled that our network partners think so highly of our company. Our team in Baltimore always strives to take care of our overseas partners. This award validated their hard work.

Congratulations to the members that won for their regions and the network member of the year. Well done! Our network is a really strong one with so many fantastic people and companies in it. It’s a people business and meetings like this reinforce that belief.

Attendees really enjoyed all the one to one meetings and evening activities. New relationships were started and it was great catching up with people we have dealt with for many years. We are grateful to all the members that take care of our shipments in their respective countries. Thunderbolt Global will continue to take good of their shipments as well in the USA.

We are looking forward to seeing everyone in Cyprus next October.

CLC Project Network Members: Hemisphere Freight Services & Thunderbolt Global team up in November 2023

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Hemisphere Freight Services and Thunderbolt Global Logistics, LLC teamed up together to coordinate a sensitive Art Sculpture Delivery from Queenstown, New Zealand to Dillon, Montana. The strength and value of the CLC Project Network was exhibited in this transaction.

Thunderbolt Named International Member of the Year at Project Cargo Network International Meeting in Dubai, November, 2022

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Thunderbolt Global Logistics Director Jim Shapiro attended the 11th Annual Meeting of PCN (Project Cargo Network) from Nov. 27-29,2022 in Dubai. There were over 185 CEO’s and Senior Managers from 95 countries. He had a great time seeing old friends he hadn’t seen in 3 years and making new ones that I met while at the meeting.

“I was very humbled when President/C.E.O. Rachel Crawford announced in her opening remarks that Thunderbolt Global Logistics was named International Member of the year for 2022. It’s gratifying to receive an award based on as survey of the members of the network. I can’t thank them enough. We’ll keep doing our best to assist them. We’ll keep asking them to help us when needed.

I am very proud of our team in Baltimore as this award is because of them. We have a great staff of hard working professionals.”  Said Shapiro after receiving the honor.

Thunderbolt Global moves huge shipment from Turkey to Seattle, WA

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Thunderbolt Global Logistics finished a project last in late February for one of our top clients that had a critical shipment from Turkey that delivered to their customer in Seattle, Washington on the northwest coast. There was a total of 9 pieces of static cargo. The 3 largest had the following weight/dims:

17,209 kgs/Dims: 650 x 600 x 490 cm
2,500 kgs/Dims: 490 x 490 x 150 cm
14,750 kgs/Dims: 450 x 450 x 350 cm

The other 6 pieces were not oversize and delivered on 2 flat bed trucks. From Turkey we had Bati Shipping arranged the transport from the factory in Turkey to Zeebrugge Belgium on a short sea RO/RO vessel due to the fact there was no service option from Turkey to Seattle or Tacoma.

Once the cargo arrived in Zeebrugge the cargo had to be transferred from the arrival terminal to the Wallenius Terminal in Zeebrugge at night. Europecargo based in Antwerp took care of that portion and set up the shipment from Zeebrugge to the Port of Tacoma on Wallenius Wilhelmsen Line. Both Bati Shipping and Europecargo did a great job.

The Wallenius vessel from Zeebrugge to Tacoma was only 1 day late from what they had showed on their schedule at the time of export. Unheard of these days for most ocean carriers. We had a deadline to deliver by a certain date and the vessel being on time was critical. We had no issue with customs clearance as it was cleared prior to arrival in Tacoma. The two widest pieces had to be delivered on the weekend between 1:00 AM – 6:00 AM

Delivery of the two widest pieces was complete by 2:30 AM in the morning Saturday. The other wide piece was delivered during the day on Friday and offloaded at night once the crane was set up at 1:00 AM. The balance of the shipment was picked up and delivered the following Monday morning.

Our photos shows the two widest pieces on the trucks with Mount Rainier in the distance outside the terminal gate. They had to wait there until 1:00 AM before they could depart. The cylindrical piece was transported during the day on Friday. Since it was 450 cm wide it could move during the day.

We are grateful for the help of our trucking partners. Omega Morgan handled the large piece delivered at night (2:00 AM Saturday). United Motor Freight handled the 8 other pieces 2 were night deliveries as well. We also want to thank the people at the Port of Tacoma at the pier and management who worked very closely with us.

The Thunderbolt team of Linda Serio in our Commercial Rates Department and Cathy Murphy in our Import Operations Department teamed up to provide excellent service for our customer. It was truly a team effort.