Global Logistics Update - 2.28.25

World Trade Bridge-Nuevo Laredo Mexico: A transporter strike is ongoing at the World Trade Bridge No 3 connecting Nuevo Laredo, Mexico with Laredo, Texas. The bridge is currently blocked on both sides due to protests by truckers. Customs and federal officials are on site and authorities are working to restore normal operations. We expect blockage to continue through today, slowing down or blocking transfer operations for both import and export cargo.

France Strikes Continue: In France, work stoppages continue, but they are now creating a more severe impact on logistics operations at ports. As a reminder, please find the current strikes on schedule for this week:

• Feb 26-27: 48-hour work stoppage
• Feb 28: 4-hour strike

Carrier Schedule Disruption Continues: The reshuffling of the ocean carrier alliance ship systems has severely disrupted schedules in many areas. We are continuing to see vessel schedule delays from one week to 20 days, and carriers’ websites are often updated multiple times a day reflecting changes. Container tracking is also problematic with containers showing that they have arrived when they have not yet departed or are sitting at transshipment points with no available information on the next event. Please keep this in mind when scheduling cargo over the next few weeks as we expect the disruption to continue for at least another 2-4 weeks.  

East Coast ILA Contract: The ILA has approved the master contract as of February 25.  The contract is now approved by both sides and the parties are expected to sign the new agreement on March 11, 2025. The contract gives ILA members a 62% pay raise spread out over the 6 years of the contract. This gives us 6 years of stability on East Coast ports, but the cost increases will eventually be passed on to the final users—importers and exporters. Harold Daggett, President of the ILA, hailed the agreement as “the greatest contract in ILA history, and maybe the strongest collective bargaining agreement ever negotiated by any union” (Freightwaves, Tuesday Feb 25, 2025, Stuart Chirls). We will be watching the next labor contract coming in 2028 on the US West Coast to see the impact as they will certainly be looking for similar terms.

Tariff Updates: The clock is ticking on the March 4 deadline for Canada and Mexico 25% tariffs, as well as another 10% on top of the 10% already imposed on China origin products. The news has been mixed this week with indications that tariffs will be kicked off on April 2, followed up by news that the March 4 date will hold. Negotiations are ongoing to work toward a solution to continue the suspension of the tariffs and we will provide updates as they become available. We are also watching the various other tariff threats, including the potential for reciprocal tariffs under the “America First Trade Policy”, and potential retaliatory tariffs based on the DST/Digital Service Tax investigation, as well as the potential retaliation of steel and aluminum tariffs are reimposed on March 12. For some good news, there have been talks this week between UK Prime Minister Keir Starmer and USA President Trump, resulting in positive statements from the White House on the potential for a UK FTA. The comment period regarding the “America First Trade Policy Memorandum” is currently open and will close on March 11. Should anyone want further details on the various tariffs or a timeline chart, please let us know.  

Fees and Penalties for Chinese Built Vessels: The office of the USTR has proposed imposing fees or service restrictions on cargo ships built in China, stating the dominance of China in this area is unreasonable and potentially actionable under Section 301 trade law. The proposal includes charging vessel operators a multitude of different fees (over $1 million per entry) to enter USA ports as well as requiring a certain percentage of US goods to be exported on US flag vessels on a gradual scale, increasing to 15% of total cargo in 7 years. There will be a public hearing on this issue on March 24, and any comments on the proposal are due on this day as well. WSSA will be joining other associations in providing feedback on this proposal in an attempt to reduce the financial impact on shippers.