--- title: "Russia Sanctions and Secondary Tariffs Bill Signed Into Law; FEWB On-Time Arrivals Collapse to 6%, Worst Since Late 2021" description: "Russia Sanctions and Secondary Tariffs Bill Signed Into Law" language: en canonical: https://www.flexport.com/global-logistics-update/russia-sanctions-and-secondary-tariffs-bill-signed-into-law-fewb-on-time-arrivals-collapse-to-6/ lifecycle: live author: - "Flexport Editorial" publishedAt: 2026-09-24T17:30:00.000Z dateModified: 2026-09-24T18:07:48Z readingTimeMinutes: 10 --- # Russia Sanctions and Secondary Tariffs Bill Signed Into Law; FEWB On-Time Arrivals Collapse to 6%, Worst Since Late 2021 ## Trends to Watch ### Talking Tariffs - **Russia Sanctions and Secondary Tariffs Bill Signed Into Law:** The bill authorizing tariffs of up to 100% on countries tied to Russian oil purchases or sanctions evasion, which cleared the House last week, is now law. The president signed H.R. 5334 on Sept. 18. - With the legislative process complete, the open question shifts to whether and when the administration actually designates specific countries. Importers with exposure to the countries flagged in earlier coverage should keep watching for that decision. - **Pharma Tariff Adjustments Take Effect Sept. 29:** A Federal Register notice makes several technical changes to the pharmaceutical tariffs, effective Sept. 29. - A new exclusion code now covers pharmaceutical products intended solely for clinical trials. - The notice also clarifies some previously published exclusion codes and swaps out HTS codes that expired in July for their replacements under that month's 484(f) Committee update. - **Commerce Moves to Prevent Polysilicon Stockpiling Ahead of Dec. 4 Tariffs:** With new Section 232 tariffs on polysilicon set to take effect Dec. 4, Commerce is watching for importers trying to get ahead of the duties by stockpiling product now, including through newly created importers of record. The agency is telling customs brokers to stay alert for this kind of activity. - A Federal Register notice sets strict weekly volume quotas for solar cells, solar modules, polysilicon ingots and wafers, and polysilicon. - Once a new IOR's weekly volume crosses that cap, Commerce approval is required to keep importing. Without it, that importer loses the ability to bring in any more of these products before the Dec. 4 tariffs kick in. - Anyone bringing in these products under a newly registered IOR should confirm they're tracking against the weekly caps before they file, since going over could cut off further entries entirely. - **Section 301 Plaintiffs Say the Government's Defense Missed the Point:** Plaintiffs in a Section 301 forced-labor tariff case want the whole USTR investigation tossed, arguing the probe into 60 economies' enforcement record never held up. They say that when the government defended it in court, it attacked "strawmen" rather than engaging with the plaintiffs' actual arguments. - The case adds to a growing pile of legal challenges to the Section 301 forced-labor tariffs working through the courts. - **CBP Issues Section 301 Exclusion Fixes, Kicks Off Truck E-Export Manifest Pilot:** CBP published guidance on recent technical corrections to China Section 301 exclusions, and separately announced a pilot program requiring electronic export manifest data for truck cargo. - The truck pilot follows a similar electronic manifest requirement CBP finalized for rail cargo a few weeks ago, continuing the shift toward electronic filing across transport modes. ### [Ocean](https://www.flexport.com/lp/ocean-freight/) **TRANS-PACIFIC EASTBOUND (TPEB)** - **Capacity and Demand:** - Carriers are deploying capacity in full through the end of September, and offered capacity into the U.S. East Coast is 6% to 7% higher in September than in August. - That changes in October: blank sailings are set to build from the week of October 5, reach roughly 18% of scheduled capacity in the week of October 12, then ease back to about 5% by the end of the month. - The driver is the calendar: Mid-Autumn Festival on September 25 to 27 runs straight into Golden Week on October 1 to 7, closing factories for about 10 days. - Chinese port operations are still recovering from four consecutive typhoons that left 1.1 million twenty-foot equivalent units (TEU) at anchorage across Ningbo, Shanghai, and Yantian, and a further storm system may develop in the last week of September. - Demand is strong. U.S. container ports are forecast to handle 2.31 million TEU in September, up 9.6% year over year, which would make it the busiest import month of 2026. October is forecast at 2.11 million TEU, up 1.7%. - Rail-destined container dwell at Los Angeles and Long Beach reached 6.75 days in August, the longest of the year. - **Freight Rates:** - Rates moved higher again. Shanghai-to-Los Angeles rates rose 5% week over week, and Shanghai-to-New York rates rose 7%. - Across the main spot indices, Asia-to-U.S. West Coast rates gained 7.45%, and Asia-to-U.S. East Coast rates gained 4.71%. Spot rates to the U.S. West and East Coasts now sit 18% and 11% below the all-time highs set during the pandemic. - Expect one more increase at the start of October as cargo is pulled forward ahead of the Golden Week shutdown. - **Recommendation:** Shippers should place pre-holiday bookings now, add buffer to cargo-ready dates out of China, and plan for firm rates into the first half of October. **FAR EAST WESTBOUND (FEWB)** - **Capacity and Demand:** - Carriers are deploying capacity in full through the end of September. Blank sailings then build to about 20% of scheduled capacity in the week of October 12 and 17% the week after, easing to 8% by the end of October. - Two things are happening at once: the Golden Week factory shutdown, and carriers matching supply to soft demand to hold rate levels. This is capacity discipline, not a demand-driven squeeze. - Schedule reliability is the bigger problem. Far East-to-Europe on-time arrivals fell to 6% in August, with an average delay of 8.2 days — the weakest performance on this trade since late 2021. Global on-time arrivals fell to 29%. - The typhoon backlog in China noted above feeds directly into berth delays in Europe over the coming weeks, and the Suez routing changes are still bedding in. - **Freight Rates:** - Rates continue to fall. Shanghai-to-Rotterdam rates dropped 9%, and Shanghai-to-Genoa rates dropped 5% in the latest weekly reading — the seventh straight week that Asia-Europe has moved in the opposite direction from the Transpacific. - Carriers have announced a rate increase effective October 19. Price is not the constraint on this trade right now — reliability is. - **Recommendation:** Shippers should select services on demonstrated schedule performance and build 7 to 10 days of buffer into arrival planning through Q4. **TRANS-ATLANTIC WESTBOUND (TAWB)** - **Capacity and Demand:** - Carriers withdrew about 9% of Europe-to-North America capacity in August, and a further 9% reduction is expected in September. On forward sailing schedules, blank sailings stay modest through most of October, with one week around October 19 reaching roughly 16%. - Space on Northern Europe and Mediterranean gateways remains tight, and yard utilization at Rotterdam and Antwerp is running high enough to keep berth waiting times elevated. - Record-low water on the Rhine, central Europe's main inland waterway, has cut barge capacity and is pushing freight onto road and rail, adding cost and time to inland legs. - Demand is soft. U.S. imports from Northern Europe fell 6.4%, and imports from the Mediterranean fell 6.5%, in the first seven months of 2026. - **Freight Rates:** Westbound rates rose 17.4% in the latest weekly index reading, while eastbound rates fell 15.0%. The increase reflects carrier capacity withdrawals and cargo being pulled forward, not underlying demand growth. - **Recommendation:** Shippers should book 4 to 5 weeks ahead to secure allocation on U.S. East Coast and Gulf strings, and add 2 to 3 days to inland transit estimates where cargo moves through the Rhine corridor. **INDIAN SUBCONTINENT TO NORTH AMERICA (ISC)** - **Capacity and Demand:** - For major ISC-to-USEC services, several are now routing through the Suez Canal. - Demand remains elevated at peak-season levels. On the major India-to-USEC routings, short-term market rates have climbed above $10,000/40'. - The supply side continues to constrain space. The Strait of Hormuz closure has pushed transshipment volume into South Asian hubs, and the resulting congestion and delays are rippling through port infrastructure and carrier networks. - Nhava Sheva throughput grew 13.6%, and Colombo grew 11.9%, in the first half of 2026 — the only two of the world's top 30 container ports above 10.5% growth. - At Mundra, a dispute over where carriers may store empty containers has slowed container evacuation from the port and inland operations. - In Pakistan and Bangladesh, fuel and power shortages are constraining trucking capacity and cutting garment factory output, which is lengthening dwell times at Karachi and Port Qasim. - **Freight Rates:** - Available space on India and Pakistan to U.S. East Coast corridors remains tight, and peak season surcharges have been extended. - U.S. West Coast routings are constrained as well, tied to TPEB-into-West-Coast dynamics and weather-related operational disruptions in the Far East. - **Recommendation:** Shippers moving to the U.S. East Coast should book 4 weeks ahead, confirm CRD as soon as possible, and secure premium capacity when needed. ### [Air](https://www.flexport.com/products/air-freight/) - **Asia-Pacific air rates climb a third straight week as holiday pull-forward accelerates.** - **North China (PVG/PEK):** - General cargo demand is rising as shippers push cargo out ahead of China's upcoming Golden Week holiday, while ecommerce volume keeps softening. - New charter capacity entering the market is absorbing the rate pressure that stronger general cargo would otherwise create. Rates are holding steady week over week. - Loose cartons and dense cargo are commanding better rates than flat or palletized freight, as carriers price for weight and space efficiency. - FEWB demand has plateaued after 2 weeks of improvement. Expect rates to hold steady through the Golden Week run-up rather than see a late seasonal push. - **South China (HKG/SZX/CAN):** - Transpacific demand is rising week over week, but ample supply is keeping rates only slightly higher. - Ecommerce demand stays soft, with one major platform showing no bookings for 2 straight weeks. - The upcoming Mid-Autumn Festival and China National Day holidays could lift the market in the coming week. - FEWB demand continues to soften, keeping rates at low levels on that lane. - **Taiwan (TPE):** - A four-day holiday (Mid-Autumn Festival plus Teachers' Day) from Friday through Monday is pulling U.S.-bound demand forward, and rates are firming as a result. - European lane capacity has risen slightly. - Book 5 to 7 days ahead of departure to secure space. - **Vietnam (SGN/HAN):** - Demand keeps rising (up 44% week over week to the U.S.) on a month-end and quarter-end push layered on top of already-high market demand. Rates are holding at elevated levels week over week. - FEWB demand is in balance (though it rebounded up 22% from the previous holiday week), with rates at moderate levels. - **Korea (ICN):** - Demand is rising steadily, though the usual pre-Chuseok cargo push is milder than the same period last year. - United Airlines started a new direct Newark route this month, setting up direct price competition with an existing operator on that lane. Capacity into Newark is comparatively loose, while Los Angeles-bound space is tighter. - **Malaysia (KUL):** - A spike in inbound volume is congesting hubs and tightening capacity, particularly on transpacific routings, though outbound pricing has stayed stable. - Book 5 to 7 days ahead of departure to avoid transit delays. - **Thailand (BKK):** - The market is stable with no major developments, and rates are holding at the same level as last week. - Airlines can offer ad hoc capacity on request. Book 5 to 7 days ahead of departure. - **Indonesia (CGK):** - Congestion from early September's volcanic ash closure at CGK has not fully cleared. The booking backlog continues 3 weeks later. - Space is booked full through the end of this week. Submit bookings 7 to 10 days ahead of cargo-ready date. - **India (BOM/DEL/MAA/BLR):** - Terminal congestion at Mumbai's air cargo complex is delaying shipment handovers, with truckers facing waits of up to 72 hours amid a reported manpower shortage. - Demand keeps climbing as shippers move cargo from ocean to air to bypass maritime bottlenecks on India-to-U.S. lanes. Book 5 days ahead of departure. - **Broader Indian subcontinent (Bangladesh, Sri Lanka, Pakistan):** - Sri Lanka: Schedules are reliable outside of 2 carriers. Base rates are stable while fuel surcharges ease, even as Middle East carrier space tightens on rising perishables volume. - Bangladesh: The EU lane is reliable with open space, while the U.S. lane is unreliable and tight. - Pakistan: Schedules are reliable, but rates are elevated and airlines are quoting only 1 to 2 days of rate validity. ## North America Vessel Dwell Times ![Vessel Dwell Chart September 24th](https://cdn.sanity.io/images/ynj1yl20/development/e2deaaf9c646b1c4e86e7ecd74c3f3b69bae1435-3000x3588.avif) ## Webinars [Flexport 2026 Fall Technology Release Live Broadcast](https://webinars.flexport.com/fall-2026-tech-release-livestream/?utm_source=flexport&utm_medium=newsletter&utm_campaign=wbn-2026-09-29-global-fall-tech-release) Tuesday, September 29 @ 9:00am PT / 12:00pm ET / 17:00 BST / 18:00 CEST [North America Freight Market Update Live](https://webinars.flexport.com/nam-fmu-live-oct-2026?utm_source=flexport&utm_medium=newsletter&utm_campaign=wbn-2026-10-08-nam-fmu-live) Thursday, October 8 @ 9:00am PT / 12:00pm ET --- *This is a markdown version of [https://www.flexport.com/global-logistics-update/russia-sanctions-and-secondary-tariffs-bill-signed-into-law-fewb-on-time-arrivals-collapse-to-6/](https://www.flexport.com/global-logistics-update/russia-sanctions-and-secondary-tariffs-bill-signed-into-law-fewb-on-time-arrivals-collapse-to-6/) for AI/LLM consumption.*