Logistics Unleashed: Global Shipping, Tariff, and Compliance Update
Carriers Face Rate Headwinds but Signals of Stability Emerging
After holding steady through much of September, container spot rates are under renewed pressure as overcapacity and soft demand come back into play. The Drewry World Container Index has now dropped around 8%, marking its 15th straight week of decline. Meanwhile, key Pacific routes are slipping toward pre‑crisis levels even as carriers try to defend their floors. Fleet growth continues, with carriers placing new ship orders even in the face of weakening demand.
That said, not all signs point downward. With the orderbook filled today, delivery schedules may slow, giving carriers room to slow capacity growth. If demand stabilizes or picks up, the market could find a new balance. The current low-rate environment gives shippers more negotiating leverage and a chance to lock favorable terms before the market rebounds.
The U.S. government shutdown adds another wrinkle. Customs and key inspections will keep running, but delays in agency support, audits, and oversight could ripple through supply chains. Ports, terminals, and trucking partners should watch for slowdowns in administrative tasks that might affect throughput.
For now, pricing pressure is real, but the upside is that we may be nearing a bottom. In the coming weeks, carriers will be forced to decide what to do with their ships and which routes to run. This is a window where careful forward planning can yield gains, especially for shippers willing to stay flexible.
EU Tariff Adjustments Now Active: What Importers Need to Know
CBP has issued new guidance under CSMS #66336270 detailing how to apply the updated HTS codes and tariff rules tied to the U.S.–EU Framework Agreement. These changes follow Executive Order 14346 and several amended proclamations affecting Section 232 and reciprocal tariffs on EU-origin goods. The guidance doesn’t introduce new rates but explains how to classify entries, when to file corrections, and how to avoid errors now that the tariff adjustments are live in ACE.
For automobiles and parts entered on or after August 1, 2025, the new rules depend on whether the standard duty rate (Column 1) is above or below 15%. If the rate is 15% or more, no additional duty applies. If it’s below 15%, the total rate is adjusted to reach 15%. CBP has assigned four new HTS codes to help filers apply the correct treatment. Refunds may be available for overpaid duties through post summary correction or protest, depending on liquidation status.
The CSMS also confirms which EU-origin goods are now exempt from reciprocal tariffs. These include civil aircraft, cork and other natural resources, religious-use essential oils, and non-patented pharmaceuticals. Each of these uses a distinct HTS code and requires supporting documentation to qualify for the exemption. Although those products became exempt starting September 1, many filers may still need to update entries or confirm eligibility.
Importers must also be careful to sequence HTS codes properly when filing complex entries. CBP outlines the required order when multiple trade remedies or exemptions apply, starting with Chapter 98 and moving through each applicable Chapter 99 category before the main classification. Below is a summary table for autos and parts to guide your team through the current duty treatment.
Quick Reminders: Exemptions Now in Effect
Civil Aircraft (HTS 9903.02.76): Aircraft, engines, simulators, and parts covered by the WTO Civil Aircraft Agreement are no longer subject to additional tariffs.
Effective Sept 1, 2025
Natural Resources (HTS 9903.02.74): Includes unavailable resources such as cork from EU countries.
Documentation must support classification
Religious-Use Essential Oils (HTS 9903.02.75): Applies to specific essential oils (HTS 3301.29.51) used for religious purposes.
Keep use-related proof on file
Non-Patented Pharmaceuticals (HTS 9903.02.77): Only applies to pharmaceutical goods not patented in the U.S., used in pharma applications.
Supporting proof required for exemption
Court Strikes Down Key Portion of FMC Rule on Demurrage Charges
In a closely watched decision issued September 23, 2025, the U.S. Court of Appeals for the D.C. Circuit struck down a central part of the Federal Maritime Commission’s 2024 rule on detention and demurrage billing. The case, World Shipping Council v. Federal Maritime Commission, challenged a provision that prevented ocean carriers from billing motor carriers under carrier haulage agreements. The court ruled that this restriction was arbitrary and capricious and therefore invalid.
At the heart of the decision was a contradiction in the FMC’s approach. The commission allowed ocean carriers to bill consignees even when they did not have a direct contract, while barring them from billing motor carriers who did. The court found that the FMC failed to clearly explain the inconsistency. It also noted that the FMC initially said carriers could bill truckers with haulage contracts, only to reverse that position later without providing a valid reason.
Importantly, the court’s ruling applies only to the section that restricted who could be billed. The rest of the FMC’s rule remains fully enforceable. This includes the 30-day deadline to issue invoices, the 30-day window to dispute charges, the requirement to provide detailed fee breakdowns, and rules for dispute resolution. These protections are still in place to promote billing transparency and accountability.
For shippers, truckers, and carriers, the implications are immediate. Carriers can once again invoice motor carriers who have haulage agreements. Trucking companies should review their contracts to confirm who is responsible for detention and demurrage charges. Importers and consignees may see shifts in how charges are allocated. Businesses should act now to ensure responsibilities are clearly outlined to avoid confusion or costly delays. Read More: Official Court Decision PDF
Evergreen Charts New Course Toward Latin America and the Middle East
Evergreen Marine is steering its global strategy toward emerging trade lanes, announcing plans to strengthen services across Latin America and the Middle East over the next five years. The carrier will increase capacity on the Asia–Latin America route and deploy larger 12,000-TEU ships along the Asia–West Coast of South America corridor. It also aims to expand links from Asia to the Caribbean and between Europe and Mexico, supported by a 29% increase in total fleet capacity, targeting 2.5 million TEUs by 2029.
The shift comes as growth cools on traditional U.S. trades and demand rises in developing markets. Evergreen will also boost connectivity in the Middle East by 2027, linking Asia, India, East Africa, and the Red Sea. Closer to home, new routes will strengthen service between central China and the Philippines, while expanded coverage in the Mediterranean and Caribbean is planned through 2030. Despite a 13% dip in year-to-date revenue, Evergreen is clearly focused on long-term growth where the trade winds are shifting.
STB Sets Proposed Timeline for Review of UP–NS Rail Merger
The Surface Transportation Board has outlined a proposed schedule to review Union Pacific’s planned $85B acquisition of Norfolk Southern. While the railroads had asked to shorten the timeline for federal agencies to respond, the Board is giving the Justice Department and Department of Transportation more time to submit their input. Other key dates, including public hearings, the close of the record, and the final ruling, are still to be determined based on public comments.
Union Pacific and Norfolk Southern are expected to file their merger application between late October and late January, with the goal of an early submission. The proposed timeline does not extend the overall process but ensures federal agencies and stakeholders have adequate time to weigh in. Written comments are due by October 16. This review will shape the future of rail consolidation and could impact shippers, labor groups, and regional markets across the country.
USDOT Cracks Down on Non-Domiciled CDLs — California Hit First
A sweeping new federal rule is shaking up how states issue commercial driver’s licenses (CDLs) to non-citizens. The US Department of Transportation (USDOT) has finalized an interim rule requiring non-domiciled CDL applicants to hold an approved employment-based visa and pass a federal immigration status check. The rule also applies retroactively, requiring states to review and revoke any existing licenses that were improperly issued. California has been ordered to halt the issuance of all non-compliant licenses immediately, and to identify and revoke invalid ones within 30 days, or risk losing millions in federal highway funding.
The move follows a nationwide audit launched in June 2025 by the Federal Motor Carrier Safety Administration (FMCSA). The audit uncovered widespread violations of federal rules, with six states, including Colorado, Pennsylvania, South Dakota, Texas and Washington; cited for non-compliance. California stood out, with over 25% of non-domiciled CDLs reviewed deemed improperly issued. While licenses granted to Canadian and Mexican drivers are not affected under international agreements, all other non-citizen applicants are now subject to this heightened scrutiny.
In response to safety concerns, the State Department has also suspended the use of H-2B, E-2 and EB-3 visa categories for foreign commercial drivers. Although only about 1,500 truckers received H-2B visas each year, federal officials believe thousands of unqualified drivers may have slipped through under laxer state systems. Trucking groups such as the American Trucking Associations and the Owner-Operator Independent Drivers Association have welcomed the move, calling it a long-overdue correction that restores integrity and raises safety standards across the industry.
Secretary of Transportation Sean Duffy issued a stark warning to all states: identify and revoke any CDL issued outside federal guidelines, or risk immediate funding losses. “California must get its act together,” he said, urging every state to take corrective action now. This rule is already in effect as of September 29, 2025, with public comments open through October 29. States are now under pressure to rapidly comply, verify legal presence for all non-domiciled CDL holders, and report back to federal authorities. Industry stakeholders are watching closely to see how enforcement unfolds in the coming weeks. 📄 View the Interim Final Rule in the Federal Register (PDF)
Canadian Ports Face Pushback Over New Empty Container Fees
The Port of Montreal has followed Vancouver’s lead in implementing a surcharge on empty outbound containers, introducing a C$10 per TEU fee effective September 30. Citing infrastructure strain and terminal congestion, the Montreal Port Authority says the charge will support fluidity and environmental goals. Vancouver’s similar C$17.58 surcharge has already drawn criticism from carriers and the Shipping Federation of Canada, which argues the costs are being unfairly shifted and could push shippers toward U.S. gateways.
Industry stakeholders warn these fees could disrupt trade patterns, discourage containerized exports, and undermine Prime Minister Mark Carney’s broader goals to boost Canadian export competitiveness. With over 500,000 empty TEUs moving through Vancouver alone in the first half of 2025, the potential financial impact is significant. A pending regulatory review by the Canadian Transportation Agency may influence whether such surcharges remain or prompt legislative reforms.
China Responds to U.S. Port Fee Policy with Maritime Retaliation
Just two weeks before new U.S. port fees take effect, China has amended its maritime transport regulations to authorize penalties and restrictions against countries targeting its shipping industry. The revised rules, signed into law by Premier Li Qiang and effective September 29, allow China to block not only vessels, but also maritime data, digital platforms, and related services from foreign nations it deems discriminatory. This move comes as U.S. Customs prepares to begin collecting special fees on October 14 from ships built in China or operated by Chinese companies, under the final Section 301 port action.
Industry insiders estimate the new U.S. fees could cost Cosco Shipping and OOCL more than $2 billion in the first year. While some non-Chinese carriers have already swapped China-built vessels for Korean-built ones to avoid the fees, Cosco and OOCL are expected to continue their U.S. operations. The new Chinese regulations leave room for relief through bilateral treaties, though tensions are rising as both sides weigh further trade actions. The USTR is expected to issue clarifications this week on the port fee rollout, while China’s rule change signals a clear readiness to escalate if necessary.
CBP Tightens ACE Air Import Messaging Requirements
Customs and Border Protection (CBP) has rolled out updates to the Air Import Message Line Identifiers that affect how key data fields must be transmitted in the Automated Commercial Environment (ACE). These changes include a longer remarks field on CBP status notifications, adjustments to address requirements, and stricter rules for Section 321 shipments. The goal is to reduce transmission errors and help ensure cleaner, more consistent data across the board.
Importers, filers, and carriers should review the updates closely and confirm that their systems align with the revised formatting. Failing to comply with the new structure could result in rejected messages or avoidable delays. Even small formatting changes can disrupt daily operations if left unaddressed. Proactively validating your systems now could prevent larger issues during peak shipping periods or audit reviews. These technical shifts may seem minor, but they play a big role in ensuring frictionless processing and communication within CBP’s air cargo environment.
ACE System Update Alert:
CBP just released the updated ACE Development and Deployment Schedule for September 2025. Stay on top of upcoming changes to system functionality and deployment timelines.