Jaguar Freight | Just When You Thought Things Might Get Better

In this week’s Roar: Many new tariffs, a glimmer of stability for global ocean routes, a drop in air cargo volumes, oil prices on the rise again, and how industry leaders can avoid common AI pitfalls.

U.S. tariff actions are spiking again. Friday, as Section 122 tariffs expired, new duties of up to 12.5% were slapped on 60 trading partners that account for 99% of U.S. imports. The new Section 301 tariffs are justified as part of policy related to a U.S. forced labor import ban. Previously, on July 20, the President issued three proclamations targeting what he claims is discrimination against U.S. exports in autos, alcoholic beverages, and dairy by Canada. As a result, new 50% tariffs will be imposed on several products in response to Canada’s countermeasures to original tariffs that cut U.S. exports. These are to take effect August 19. Other new tariff actions aim to strengthen U.S. aluminum production and bring more pharmaceutical manufacturing to the U.S. over the next two years.

The renewal of the Panama-China Maritime Transport Agreement brings a glimmer of stability to global shipping routes, especially since the Middle East continues to be a challenging region for supply chains. The act ensures that preferential treatment will be given to Panamanian-flagged vessels at Chinese ports, which will support smoother maritime trade in a time of ongoing geopolitical uncertainty elsewhere.

Asia-Pacific to Europe air cargo volumes are down 15% year-on-year, with Hong Kong exports down 23%. This is in response to the EU recently ending its de minimis tariff exemption and introducing a €3 customs duty on every low-value parcel that enters from outside of the bloc.

A new Houthi blockade of the Bab el-Mandeb Strait could push oil prices above $115-$120 per barrel since it will disrupt Saudi exports to Asia and force tankers to take month-long detours. There are workarounds, but analysts are warning that a prolonged disruption could trigger global fuel price spikes and a broader economic fallout.

There are a few steps leaders could take to avoid common AI pitfalls in their supply chains. They should ensure they have quality data, use AI in decision-intensive areas, and always pilot new tools. Scaling should only happen after effectiveness has been validated, and underperforming projects should be immediately scrapped. 56% of supply chain officers cite integration challenges, clearly indicating that ongoing review is the key to successful value-driven AI adoption and avoiding costly failures.

For the rest of the week’s top shipping news, check out the article highlights here.

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