In this week’s Roar, goods are still stuck on the Ever Given, the U.S. and EU suspended tariffs on $11.5B of products, carriers could be legally obligated to ship U.S. exports, the Port of L.A. had its busiest month ever, and the Port of Liverpool is apparently imploding with growing congestion.
It’s been almost three months since Ever Given first blocked the Suez Canal, and many companies with products onboard are still left waiting in the dark as the $600 million compensation battle between the Suez Canal Authority and the ship’s owner continues to unfold. Snuggy, a smaller UK retailer, reported that it had $550,000 of vital stock tied up in the whole ordeal.
Another drawn-out battle that’s been making headlines this week involves the civil Airbus-Boeing aircraft dispute that slammed wine and spirits supply chains with steep tariffs on imports and exports during the height of the pandemic. Fortunately for shippers on both sides of the Atlantic, the U.S. and EU recently agreed to a five-year tariff suspension on $11.5 billion worth of food, wine, spirits, and machinery goods affected by this conflict.
U.S. agricultural exporters also got another win this week in the form of a potential bill that would give the FMC the legal authority to ensure carriers are accepting their containers. According to JOC, “the legislation would require carriers to include a statement of compliance with U.S. maritime regulations, bar carriers from refusing exports, and require the FMC to publicly disclose on its website false certification and resulting penalties.”
At a time when ports are completely overwhelmed with increasing demand and surging container volumes, this bill could not be introduced fast enough for some companies. Last month, for example, “the Port of L.A. moved a total of 1,012,248 TEUs, up 74% from May 2020, when COVID-19 had stalled global trade,” marking the port’s busiest month in 114 years.
Over in Liverpool, things don’t seem to be any less busy as major delays resulting from restricted haulier access create more and more headaches for carriers and forwarders.
Compliments of Jaguar Freight – a member of the EACCNY.