Tariff changes, port deals, and new shipping routes explained clearly

Global Trade Shifts You Should Watch

U.S. Considers Higher Tariffs on Chinese Goods

The U.S. has signaled the potential for total tariffs of up to 245% on certain Chinese imports, reflecting the cumulative impact of multiple trade measures. According to an official White House fact sheet, the total figure includes a 125% reciprocal tariff, a 20% tariff related to the fentanyl crisis, and Section 301 tariffs on select goods ranging from 7.5% to 100%, depending on the product category. While no new tariff rule has gone into effect since April 10, the aggregated rate reflects the current policy direction and its implications for global trade.

These tariffs are part of a broader strategy to reduce reliance on critical materials imported from China. A new Executive Order has also launched a Section 232 investigation into the national security risks posed by dependence on imported processed critical minerals and derivative products. These materials—such as rare earth elements, gallium, and germanium—are essential to sectors like defense, technology, and infrastructure. China’s recent export restrictions on these components have prompted increased scrutiny and concern across industries.

Companies in electronics, automotive, aerospace, and manufacturing are paying close attention to these developments. The outcome of the Section 232 investigation could shape future tariff actions and supply chain strategies. The 245% figure represents a maximum cumulative threshold under current trade authority, not a newly imposed single tariff.

Southern Star Navigation continues to monitor these policy shifts closely to help clients anticipate potential cost impacts and maintain compliance. To review the full details from the White House, visit:

👉 White House Fact Sheet on Tariffs and Critical Minerals

ZIM Launches Fast Shipping Service

12.5-Day Route from Asia to LA

ZIM has launched a new ocean service designed to meet growing demand for speed and reliability between Asia and the U.S. West Coast. The ZIM eCommerce Express route connects Cai Mep (Vietnam) and Yantian (South China) to Los Angeles with a swift 12.5-day transit time. The service features a late cut-off on Wednesdays in Yantian and Tuesday morning arrivals at the ITS Terminal in Los Angeles, offering more flexibility for shippers managing tight schedules.

This express service includes guaranteed space and equipment for expedited cargo, a dedicated gate-in lane to skip general lines, and direct chassis discharge at arrival. From Los Angeles, weekly express rail departures connect to major inland destinations like New York, Chicago, Memphis, Houston, Dallas, and Kansas City. At Southern Star Navigation – Independent Landstar Agent, we monitor these carrier developments to help clients take advantage of the fastest and most reliable shipping solutions available.

MSC Expands Global Port Footprint

$19B Deal to Acquire 43 Terminals

MSC’s terminal division, Terminal Investment Ltd. (TiL), is part of a consortium that has proposed a massive $19 billion acquisition of 43 port assets from CK Hutchison Holdings. This global deal includes investments from BlackRock and its infrastructure arm and would give MSC even greater control over port access across key shipping lanes. Two of the ports involved are in Panama, with the rest spread across multiple continents, supporting MSC’s long-term strategy of integrating shipping with port operations.

This move follows MSC’s rapid rise to the top of the global container carrier rankings, having surpassed other major players by prioritizing capacity expansion and asset control. For international shippers, deals like this could mean more vertically integrated services and potentially improved port handling. At Southern Star Navigation, we continue to monitor these developments closely to help our clients navigate shifting port ownership and how it may affect transit options, inland connectivity, and overall supply chain planning.

Maritime Labor Convention Reforms Approved

New Protections Set for 2027 Rollout

The International Labour Organization (ILO) has approved major reforms to the Maritime Labour Convention (MLC), aimed at improving working and living conditions for seafarers worldwide. The changes, finalized in April 2025, include formal recognition of seafarers as “key workers,” stronger repatriation rights, and guaranteed visa-free access for shore leave. These updates are expected to take effect in December 2027, allowing time for implementation across the global shipping industry.

Additional measures were introduced to address safety and well-being onboard, including stricter policies to prevent bullying and harassment and the requirement to carry the ICS International Medical Guide for Seafarers and Fishers on vessels. These updates reflect a growing push for fair treatment and better support for maritime crews. At Southern Star Navigation, we’re keeping our clients updated on regulatory changes like this to help them stay compliant and support ethical shipping practices.

Canada Grants Tariff Relief to Automakers

Exemptions Tied to Domestic Production Commitments

In response to recent U.S. tariffs on Canadian imports, the Canadian government has announced targeted exemptions for automakers maintaining production within the country. Companies such as General Motors and Stellantis, which operate assembly plants in Ontario, will be allowed to import a specified number of U.S.-manufactured vehicles without incurring the standard 25% counter-tariff. This relief is contingent upon continued local manufacturing, employment maintenance, and fulfillment of investment plans in Canada.

Additionally, Canada is providing a six-month exemption on certain U.S. imports essential to Canadian manufacturing, processing, and food and beverage packaging sectors, as well as items related to public health and national security. These measures aim to mitigate the economic impact on Canadian businesses and institutions reliant on U.S. goods, while maintaining pressure on the U.S. to reconsider its tariff policies.

New Carriers Disrupt India-Med Trade

Lower Rates and Direct Routes Drive Shift

The India-to-Mediterranean shipping lane is seeing a notable shake-up as smaller regional carriers like Turkon Line and Arkas Line gain traction against long-established ocean carriers. These Turkish lines recently launched a vessel-sharing agreement, offering direct Suez Canal routes and competitive rates that appeal to shippers seeking quicker transit and cost savings. Their joint loop from Nhava Sheva and Mundra has been running at over 90% capacity, signaling strong demand despite wider Red Sea disruptions.

Industry data shows newcomers are offering rates up to $500 less per container than mega carriers, particularly on routes like Nhava Sheva to Alexandria. While larger carriers continue rerouting around the Cape of Good Hope due to safety concerns, these newer players are leveraging Red Sea access to serve markets more aggressively. As the landscape shifts, Southern Star Navigation stays focused on helping our partners assess reliable service options and competitive pricing across evolving trade lanes like India–Mediterranean.

Border Tariff Delays Increase Shipping Costs

US-Mexico Trade Hit by Inspections, Red Tape

Cross-border shipping costs are rising sharply at the US-Mexico border—not just because of tariffs, but due to added paperwork, inspections, and delays. Mexican authorities have increased security checks, with soldiers inspecting trucks and breaking seals to search for contraband. At the same time, U.S. Customs is demanding more documentation to prove compliance with the USMCA agreement. This has forced many shippers to double or triple their workload, often needing to list several tariff codes where one used to be enough.

Even goods not subject to new tariffs are seeing delays and cost increases. Some companies are holding back shipments to avoid risks tied to missed compliance, while others are scrambling to manage inventory swings caused by changing rules and peak season pressures. For temperature-sensitive goods or just-in-time deliveries, every hour of delay adds cost. Southern Star Navigation helps importers and exporters stay prepared by monitoring these developments and offering support to minimize disruptions at the border.

Shippers in Mexico Brace for Tariff Shifts

Supply Chain Strategies Evolve Amid Uncertainty

Global shippers operating in Mexico are adjusting their logistics strategies as new U.S. tariffs continue to shift. Ongoing trade tensions with countries like China and changing tariff policies under Section 301 and USMCA rules have created a dynamic environment where sourcing decisions must be made with flexibility in mind. Companies moving goods across the U.S.-Mexico border are increasingly concerned with product origin, documentation accuracy, and the risk of sudden duty increases that could impact pricing and supply chain flow.

To stay competitive, many manufacturers in Mexico are expanding their supplier networks to include more U.S. and local vendors while maintaining strong ties with international partners. This diversification helps mitigate risks tied to tariffs and transportation disruptions. Keeping shipments compliant with USMCA rules is also a top priority, especially for businesses with complex supply chains that include components from Asia or Europe.

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

or email: [email protected]