Freight Market Update: October 9, 2019
Ocean and air freight rates and trends; trucking and customs news for the week of October 9, 2019.
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Ocean Freight Market Update
Air Freight Market Update
Weaponizing Trade Policy to Protect the Environment
Amid the US-China trade war and the fast-approaching IMO 2020, a new policy is being floated in Europe: a potential carbon border tax that would aim to block energy-related European manufacturers, including steelmakers and oil refiners, from relocating to countries outside the EU that have not prioritized efforts to combat climate change.
New IMF Head Paints Grim Picture of Trade War Effects for Global Economy
A synchronized upswing for the global economy that has been in effect for two years has switched to a synchronized drag, according to Kristalina Georgieva, the new leader of the International Monetary Fund (IMF).
With the US-China trade war at least partly to blame for the slowdown, the IMF warns that the global economy could get hit with a loss to the tune of about US$700B by 2020.
Customs and Trade Updates
WTO Arbitrator Rules in Favor of US to Retaliate with Tariffs on EU
The 15 year-long fight over the subsidies the EU was providing to Airbus has a final verdict from the WTO and it went in favor of allowing the US to impose tariffs on $7.5 billion worth of goods. The ruling allowed the US to impose up to 100% tariffs on the goods, but in a full list released by the USTR they had 10% tariffs on jets and a 25% tariff on some foods (mainly cheese, wine, fruits and vegetables), tools, and some household goods. The list is scheduled to go into effect for any goods imported on or after October 18th. There will be no exclusion process rolled out at this time for importers of these items.
BIS Adds 28 Chinese Entities
The Bureau of Industry and Security issued a final rule that will go into effect on October 9th. This rule will impose export license requirements for the 28 entities listed to protect against chemical and biological agents that are consumer goods, medical products, packaged for retail sale or for personal use. These requirements will apply to any item that is transferred, exported, or re-exported. If a shipment was already on board a vessel on October 9th it may proceed to the destination without the license.
MTB Petition Portal Opens October 11th
The portal to file for the Miscellaneous Tariff Bill opens October 11th at 8:45am EST. Filing for MTB's can get importers a temporary duty reduction or suspension of duties on their products. The portal will be open for 60 days (December 10th).
For a roundup of tariff-related news, read our Tariff Insider.