Global Shipping Updates and Trade Insights
Carriers Hold Rates Steady Ahead of Golden Week
Carriers have kept trans-Pacific spot rates steady heading into the Golden Week holiday, even as the early September surge begins to ease. The general rate increase that took effect on September 1 provided a short-term lift, supported by heavy blank sailings and stronger than expected bookings from Asia. Spot levels briefly climbed by several hundred dollars, reaching $2,500 per FEU to the West Coast and $3,600 to the East Coast. Although recent rates are softening, they remain well above August lows and show that carrier discipline has prevented a sharper decline.
Capacity management has been the key driver. Nearly 13% of scheduled East Coast sailings were withdrawn in early September, with another 20% already planned for October. On the West Coast, around 10% of sailings have been cut this month, with additional blank sailings announced for the weeks ahead. By holding supply tight, carriers are protecting both spot and contract rate levels, which had started to converge as spot rates slipped closer to fixed contracts in August.
Even with muted booking activity compared to past Golden Week seasons, there is cautious optimism that the market is entering a more stable phase. Voyage-specific pricing remains common, with carriers quietly discounting below posted levels to keep ships full. Still, overall pricing has held firmer than many expected. Looking ahead, carriers are expected to continue balancing service reliability with strategic blank sailings to avoid oversupply in the weeks after the holiday.
Premier Alliance and USTR Port Fees: Industry Shifts Begin Ahead of October Deadline
Beginning October 14, 2025, the United States Trade Representative will activate the Section 301 port service fee program, with a 180-day grace period before collections begin. Vessels owned or operated by Chinese entities will be charged under Annex I at $50 per net ton, increasing annually through 2028. Vessels built in China but not operated by Chinese companies will fall under Annex II, paying the greater of either a net tonnage fee or a per-container fee starting at $120 per container discharged. Each vessel can be charged up to five times per year. Additional rules and exemptions apply depending on vessel type, route, and usage, while Annex III and Annex IV establish separate provisions for vehicle carriers and LNG exports with phased compliance beginning in 2028.
With these changes approaching, major alliances are already adjusting. The Premier Alliance, formed by HMM, Ocean Network Express, and Yang Ming, is evaluating revisions to its MS2 pendulum service to limit the use of Chinese-built ships in U.S. port rotations, according to industry analysts. Early reports suggest the revised structure may add a new Asia–Mediterranean loop and a Gulf South loop, shifting about 10 Chinese-built vessels away from direct U.S. calls. These proactive adjustments reflect a broader trend as carriers reshape services to reduce exposure and operational risk under the new regulatory landscape. Read More:
Florida Expands Agricultural Inspection Stations into Enforcement Checkpoints
Florida has reclassified its 23 Agricultural Inspection Stations as Agricultural Inspection and Interdiction Stations under a new enforcement mandate. Traditionally, these roadside facilities were designed to protect the state’s agriculture by screening incoming trucks for high-risk plants, pests, and quarantined materials. As of August 25, 2025, their role has expanded significantly. Officers with the Office of Agricultural Law Enforcement, now certified under ICE’s 287(g) program, are authorized to verify driver immigration status, test English proficiency under federal CDL standards, check for fraudulent documents, and identify unsafe commercial vehicles.
This change means the stations are no longer focused only on agricultural cargo. All commercial motor vehicles directed to enter must comply with inspection, regardless of load type. For carriers, this adds new layers of enforcement at the same checkpoints that have long been part of Florida’s highway network. Importantly, weigh stations operated by the Department of Transportation and Highway Patrol continue to serve their original function, focused solely on weight and safety compliance, and are not being used for immigration or language checks currently.
UP and NS Launch New Intermodal Corridor Linking West Coast Ports to Louisville
Union Pacific and Norfolk Southern will debut a new domestic intermodal service this October that directly connects Louisville, Kentucky to major U.S. port regions, including Southern California, the Pacific Northwest, and the Gulf Coast. The route will pivot through Union Pacific’s newly expanded Kansas City Intermodal Terminal, creating a high-capacity interchange point between the two carriers. This marks a strategic step forward as both railroads respond to shifting national rail maps, partly in anticipation of UP’s proposed $72 billion acquisition of NS. That merger, if approved, would create the first true transcontinental rail network in the United States, spanning 50,000 miles and serving 100 ports.
The new service aims to reduce costly drayage moves and offer shippers a more direct, sustainable rail option into the Midwest. By eliminating the need to haul containers from cities like Chicago or Cincinnati into Louisville, the route opens faster and more efficient paths for both domestic and international freight. It also positions the Kansas City terminal as a central hub for future eastbound intermodal growth, potentially linking all the way to Pennsylvania and the New York–New Jersey port region. Louisville’s terminal, traditionally focused on international cargo, is now being modified by NS to support domestic volume and expanded truck access. This collaboration comes as other Class I railroads, including CSX and Canadian National, explore similar cross-network services, signaling a competitive shift toward longer-haul, rail-integrated intermodal models.
Port Tampa Bay Deepening Project Moves Into Design Phase
Port Tampa Bay and the U.S. Army Corps of Engineers have signed the Design Agreement for the Tampa Harbor Federal Deep Draft Navigation Project, officially launching the preconstruction design phase. The project will deepen nearly 70 miles of navigation channels, improving access from the Gulf of Mexico to the Port of Tampa. Key goals include reducing transportation costs, enhancing safety, and strengthening the domestic supply chain.
The initiative also focuses on environmental benefits by reusing dredged material to create habitats and recreational areas. Port officials see this as a turning point for Tampa Bay’s economic and maritime future. Once complete, the project will expand global trade capacity while supporting local jobs and sustainable growth.
CBP Confirms IEEPA Tariff Refunds Now Eligible Under USMCA 1520(d) Claims
U.S. Customs and Border Protection has confirmed that importers may now recover IEEPA duties on qualifying USMCA goods by filing a post-entry refund claim under 19 U.S.C. §1520(d). To be eligible, the importer of record must substantiate that the goods meet all USMCA rules of origin and filing requirements. Claims must be submitted within one year of the date of importation and may be filed through the ACE protest module, a paper protest, or a Free Trade Agreement reconciliation entry if the entry was flagged at time of import. CBP emphasized this option is now available for duties imposed under Executive Orders 14193 and 14194, aligning IEEPA treatment with other trade remedy refund processes.
This update is especially important for entries from Canada and Mexico subject to IEEPA tariffs imposed on or after March 4, 2025. While the IEEPA duties began on that date, the USMCA tariff exceptions did not take effect until March 7, 2025. As a result, goods entered between March 4 and March 6 are not eligible for refund. However, for qualifying entries made on or after March 7, importers may now pursue a refund of the additional IEEPA duties if the goods were USMCA eligible and the refund request is properly documented and timely filed. This clarification offers a long-awaited opportunity for importers to recover costs and aligns IEEPA treatment with other trade remedy refund processes. Read More
Mixed Port Congestion Trends Across Europe This Week
Port congestion across Europe continues to show both relief at some terminals and worsening conditions at others. In Hamburg, CTA and CTB remain heavily constrained by high yard usage and berth delays, imposing longer wait times for arriving vessels. Rotterdam’s ECT terminal continues to face pressure, while some other Rotterdam terminals are reported to be under less stress, though data on rapid improvements remain mixed.
Further south, Genoa is experiencing delays with yard densities elevated and trucks facing queues for terminal access. Meanwhile, while Valencia and Izmit are flagged in certain congestion trackers, available data does not yet clearly confirm a week‑over‑week worsening. These mixed signals suggest that congestion remains volatile, with terminal performance closely linked to yard capacity, weather, labour availability, and inland transport link reliability.
WSC Launches New Cargo Safety Program Amid Record Deficiency Rates
The World Shipping Council has launched a new Cargo Safety Program to stop dangerous shipments before they ever reach a vessel. This comes as new data reveals that 11.4% of inspected container cargo had serious issues such as misdeclared or undeclared hazardous goods, incorrect documentation, and improper packing. That is the highest rate recorded since they began tracking in 2011. In response, the WSC is introducing an AI-powered screening system to help carriers identify high-risk shipments in advance. Over 70% of global container trade has already committed to the program.
This is an important move for the industry. With ship fires and cargo incidents becoming more frequent, a proactive and data-driven approach is long overdue. The new screening process will allow for earlier intervention and better decision-making, while also encouraging accountability throughout the supply chain. It’s designed not only to catch errors, but also to prevent the costly and dangerous consequences that follow when they go unnoticed. Read More
Marine Insurance
Marine insurance is crucial for businesses involved in shipping goods internationally. It provides comprehensive coverage that safeguards shipments against various risks and uncertainties during transit by sea, air, or land. This type of insurance is essential for ensuring that businesses can recover financial losses from potential damage or loss of cargo.
Importance of Marine Insurance:
- Protection Against Financial Loss: Covers the cost of goods lost or damaged during transit, ensuring businesses do not bear the financial burden alone.
- Risk Management: Helps manage and mitigate risks associated with transportation, including natural disasters, accidents, and piracy.
- Peace of Mind: Provides reassurance that goods are protected, allowing businesses to focus on operations without worrying about potential losses.
- Legal Compliance: Often a requirement in international trade contracts, ensuring that businesses meet legal and contractual obligations.
- Comprehensive Coverage: Includes protection against various risks such as theft, fire, and other perils specific to maritime transportation.
For more information, call Southern Star Navigation at 833.782.7628 Ext. 1
or email: starsales@southernstarnav.com