Latest news with #Trans-Pacific
Yahoo
04-06-2025
- Business
- Yahoo
Flexport Debuts Tariff Simulator as Customers ‘Need Clarity on Costs'
Flexport wants to help businesses better estimate how much extra they're paying in tariffs when they're importing goods into the U.S. The digital freight forwarder launched the Flexport Tariff Simulator Monday as importers continue to navigate the stop-and-start environment. The simulator is accessible to the general public. More from Sourcing Journal US Pushes Global Partners for Trade Deals by Wednesday Trade Truce Crumbles as China Says US Violated Terms Trans-Pacific Ocean Freight Rates Continue Their Ascent on More Front-Loading With the Flexport Tariff Simulator, importers shipping to the U.S. can now estimate tariff and landed cost scenarios based on key shipment details, including: the Harmonized Tariff Schedule (HTS) code; shipment value; entry date; country of origin; and product-specific details such as material composition. For example, a business importing a men's T-shirt from China can either search their specific product category or enter the relevant HTS code and select an entry date to receive an estimated, detailed duty calculation with landed cost. The calculation also breaks out how much is owed for each individual duty that applies to the product's country of origin. Additionally, the tool also allows shippers to include potential exclusion codes to determine how much they would save if applied. Within the simulator, there is an interactive map that allows users to see trade data around the world including the total value of imports from a given country, the current average duty rate and the percentage of total U.S. imports coming from that country. The map also can break down total imports by individual HTS codes, and enables users to see the top trade partners for each individual product category. The simulator is built to enable dynamic scenario planning and cost forecasting as importers explore alternative trade lanes, manufacturing options and import timelines. According to Flexport, the user interface is updated in real time as tariff policies change. 'Our customers have been telling us loud and clear: they need clarity on costs,' said Ryan Petersen, founder and CEO of Flexport, in a statement. 'Our engineering team built The Flexport Tariff Simulator in response to meet that need in the face of all the uncertainty caused by rapid policy changes. We want to help merchants avoid expensive surprises.' Petersen has been vocal about the tariffs in recent months and how they could impact the Flexport business and its many customers. He told Fortune in a recent interview that the duties push back profitability projections for Flexport by six months to a year. And in a separate interview with The Wall Street Journal, he called the tariffs 'an extinction-level, asteroid-wiping-out-the-dinosaurs kind of event' for small businesses. In a LinkedIn post on Monday, Petersen called the tariff simulator 'the number one thing customers have asked for.' Retailers and brands alike of all sizes have had to endure a flurry of on-the-fly changes to U.S. tariff policy since April 2, when President Donald Trump's 'Liberation Day' announcements unveiled a slew of country-specific 'reciprocal' tariffs on dozens of American trade partners. A week later, on the day those duties initially went into effect, Trump put a 90-day pause on the country-specific tariffs, paring them back to a 10-percent baseline. Much of the attention is now on China, where plenty of Flexport customers still manufacture and source many of their products. China has seen the most tariff fluctuations of any U.S. trade partner as the White House continues its trade war against the country, likely creating confusion among those business leaders needing to stay abreast of the immediate impacts. On top of already existing Section 301 tariffs, China's 'Liberation Day' duties, including the 20-percent fentanyl-related tax, totaled 54 percent. These tariffs were then escalated to 145 percent as the remaining country-specific tariffs were scaled back, before being put largely on pause in May for 90 days. Chinese imports into the U.S. now have a duty rate of 30 percent. President Trump and China's President Xi Jinping could hold direct talks on the tariffs as soon as this week, according to the White House. Flexport's launch came the same day a Reuters report indicated that the White House wants its 'best offers' from U.S. trade partners by a Wednesday deadline. The official deadline for most countries to negotiate new deals with the Trump administration is July 9, before the 90-day pause expires and the original April 2 duties would go into effect. For China, the target date is Aug. 14. Alongside the tariff simulator launch, the freight tech company also is debuting a new, searchable catalog of HTS code content. Each entry is designed to provide detailed, easy-to-understand information to help businesses better navigate classification requirements, special duty rates and implications for their customs clearance process. Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
03-06-2025
- Business
- Yahoo
US Pushes Global Partners for Trade Deals by Wednesday
With an eye toward finalizing trade agreements ahead of its self-imposed July 9 deadline, the White House is pushing global trade partners to submit their most attractive offers to the U.S. by Wednesday. According to a draft of a U.S. Trade Representative (USTR) letter viewed by Reuters, the Trump administration is seeking to expedite the closure of deals with a number of countries. More from Sourcing Journal Trade Truce Crumbles as China Says US Violated Terms Trans-Pacific Ocean Freight Rates Continue Their Ascent on More Front-Loading How Should Brands Think About Cross-Border E-Commerce Amidst Uncertainty? Within the document, presumably to be sent to foreign trade officials, the administration asked for proposals related to the lowering of tariffs and non-tariff trade barriers along with quotas for the purchase of U.S. goods like agricultural and industrial products. It also asked for details about other commitments countries might make related to digital commerce and economic security. The outlet reported that the USTR wrote that it would evaluate responses with the intent of creating 'a possible landing zone' for negotiations which could include a new rate for reciprocal duties. In the weeks since President Donald Trump's April 2 'Liberation Day' announcements and the subsequent deferral of so-called 'reciprocal' duties, cabinet officials have touted progress in trade negotiations between the U.S. and dozens of trading partners. While talks have been in progress with Vietnam, India, Japan and the European Union, only one deal—which can be more accurately described as a framework for an agreement—has been finalized with the United Kingdom. The ambitious June 4 request for proposals underscores a sense of urgency within the administration. Just five weeks remain until Trump's reciprocal duties, which were deferred for a period of three months on April 9, will resume, blanketing imports from across the globe in double-digit duties. Since the White House's tariff schemes were unveiled, they've thrown markets into tumult and shaken up global sourcing and supply chains. According to a Monday report from the South China Morning Post, U.S. retailers and big box stores like Walmart have been pushing their suppliers in China to take on more of the tariff burden that's been foisted upon them—some demanding that their overseas partners pay up to 66 percent of the added duties. After Walmart's chief executive spoke out about the impact the tariffs might have on prices at retail during an earnings call last month, Trump directed the retailer to 'eat the tariffs' rather than pass along the cost to consumers. Trade talks with China have all but 'stalled,' according to administration officials. In recent days, both China and the U.S. have accused the other of undermining negotiations following the establishment of a three-month trade truce last month. While tensions between the two countries are running high, White House press secretary Karoline Leavitt said Monday that Trump and Chinese President Xi Jinping would likely speak sometime this week. And over the weekend, the USTR quietly released a Federal Register notice announcing extensions of certain existing tariff exclusions from Section 301 duties until Aug. 31. The notice said that a three-month extension would be granted on 164 exclusions that were extended in May of last year, along with 14 exclusions that were established in September. The products covered by the exclusions include mostly solar manufacturing equipment, technology and electronics, and some Covid-related goods. 'The US Trade Representative's decision to extend these exclusions takes into account public comments previously provided, previous advice of the advisory committees, and the interagency Section 301 Committee,' the notice said.
Yahoo
02-06-2025
- Business
- Yahoo
As CMA CGM Flirts with Red Sea Comeback, Will Others Follow Suit?
CMA CGM is reshuffling its deck of vessels to expand its presence in the Red Sea. Starting in June, the ocean carrier will reroute its Med Express (MEDEX) service—which connects ports across the Middle East, Indian subcontinent and Mediterranean Sea—back through the Suez Canal. More from Sourcing Journal Carriers Ramp Up Trans-Pacific Capacity on Expected Demand Rally CMA CGM's $600M Vietnam Port Project Reflects 'Sharp' Container Demand Trans-Pacific Cargo Space Vanishing Fast Ahead of Tariff Deadlines According to a CMA CGM spokesperson, the container shipping firm is reallocating ships on a trade lane that had already been temporarily using the Suez route, and is not deploying additional vessels via the Red Sea and Bab el-Mandeb Strait. 'At this stage, the majority of the Group's vessels continue to be rerouted via the Cape of Good Hope,' the spokesperson told Sourcing Journal. 'CMA CGM does not plan to resume transits through the Suez Canal on a large scale in the short term, unless security conditions allow it. Until further notice, the CMA CGM Group will continue to seek escort assistance from the European Union Naval Force's Operation ASPIDES for its ships to ensure the highest level of safety for its crew members, vessels, and its customers' cargo.' The first westbound transit on the route will be with 9,700 20-foot equivalent unit (TEU) CMA CGM Pelleas ship, which will leave Sri Lanka's Colombo Port on June 10. The ship will also conduct the first eastbound voyage for the service out of Jeddah Islamic Port in Saudi Arabia on July 24. The weekly service line will use a fleet 10 ships that can carry between 6,000 to 10,000 TEUs, and dock at ports including Nhava Sheva and Mundra in India, Abu Dhabi and Jebel Ali in the U.A.E., Genoa in Italy and Barcelona and Valencia in Spain, among others. Fourteen ports comprise the MEDEX line, which last, Since late 2023, when the Yemen-based Houthi militant group began attacking commercial vessels in the Red Sea and Bab el-Mandeb Strait, CMA CGM had opted for MEDEX vessels to instead sail around Africa's Cape of Good Hope. The longer route adds between one and two weeks to total ocean transit times, and has been a key determinant in pushing up freight rates due to the ensuing capacity crunch. A Red Sea return would mark a big step for container shipping in returning to the conflict-ridden waterway, which remains a no-go zone for most ocean carriers concerned about the attacks. Although the Houthis haven't attacked a container ship thus far in 2025, and have appeared to indicate they won't be targeting non-Israeli ships any longer, the industry has still been hesitant about redeploying ships in the area. 'The open question for now is of course how many services we need to see from CMA CGM reverting back to the Red Sea before the other major carriers will re-assess and also revert back to a Suez routing,' said Lars Jensen, CEO of Vespucci Maritime, in a post on LinkedIn. Companies have been avoiding a return largely because they cannot guarantee safety on the route, and because war-risk insurance premiums for carriers remain elevated compared to pre-Red Sea crisis levels. The higher freight rates also add an incentive, contributing to higher profits industrywide. Unlike the other major carriers, CMA CGM hasn't spurned the Suez Canal entirely since the Houthis began their onslaught on shipping. The France-based company opened up transit on a case-by-case basis in February 2024, and had already been working with the French Navy to help escort vessels through the Red Sea when necessary. This is a benefit major carriers like Denmark-based Maersk and Switzerland-based Mediterranean Shipping Company (MSC) don't have. CMA CGM's fleet has regularly been sailing one service on the Suez route as part of the Ocean Alliance the carrier has with Cosco Shipping, Orient Overseas Container Line (OOCL) and Evergreen. The weekly BEX2 (Phoenician Express) service from Far East to the Mediterranean has been in regular rotation since July 2024. That line stops at major Asian ports including Shanghai and Ningbo in China, Busan, South Korea and Singapore. It likely strayed away from Houthi attention because it transported cargo to and from Beirut, Lebanon, according to Alphaliner. On June 23, CMA CGM also plans to do a single Suez Canal voyage via its Far East-to-Mediterranean MEX service, when the 16,000-TEU CMA CGM Jules Verne leaves eastbound from Jeddah. The Ocean Alliance service is not a permanent shift. Both the services and one-offs have put CMA CGM far ahead of competitors when it comes to Suez sailings. CMA CGM ranked first in net tonnage of container vessels passing through the Suez Canal from January to April, representing 19 percent of cargo moved during that period. During the quarter, 486 container vessels sailed through the Suez Canal, amounting to 17,234 metric tons. During a meeting with the Suez Canal Authority earlier this month, CMA CGM's executive vice president of assets and operations, Christine Cabeau, hinted at the MEDEX shift. She indicated that the group wanted a second fixed service to traverse the canal. The Suez Canal Authority, which has seen substantial losses in revenue since the Houthi attacks began, is offering 15-percent rebates for container vessels opting to sail through the trade artery. Sign in to access your portfolio
Yahoo
02-06-2025
- Business
- Yahoo
Trans-Pacific Ocean Freight Rates Continue Their Ascent on More Front-Loading
Trans-Pacific ocean spot freight rates have kept their foot on the gas in the wake of a rush of imports from China into the U.S. as trade and tariff uncertainty pervades between the countries. On Friday, the Shanghai Containerized Freight Index (SCFI) calculated a surge of nearly 31 percent from the week prior out of the Chinese city across all markets, with West Coast-bound spot rates skyrocketing 58 percent to $6,243 per 40-foot equivalent unit (FEU). Rates soared 46 percent to $5,172 per container headed to the East Coast. More from Sourcing Journal How Should Brands Think About Cross-Border E-Commerce Amidst Uncertainty? As CMA CGM Flirts with Red Sea Comeback, Will Others Follow Suit? Can Tech Plug the Gaps Between Immigration Policies and Reshoring Aspirations? The weekly 30.6 level gain to 2,072.71 points represents the second-largest individual gain tracked by the index, following the final week of December 2023 as ocean carriers began avoiding the Red Sea en masse. Abercrombie & Fitch is one apparel retailer that has already baked in higher freight costs for their second quarter, chief financial officer Robert Ball said in a Wednesday earnings call. All the major indices that monitor ocean freight rates have indicated significant jumps to close out May, with the SCFI showing the highest increases. According to Drewry's World Container Index (WCI) posted Thursday, freight rates from Shanghai to Los Angeles leapt 17 percent to $3,738 per FEU in the past week and 38 percent since May 8. Spot rates to New York have risen 14 percent in the past week to $5,172 per container, and have accelerated 42 percent in the past three weeks. These numbers buoyed the overall WCI to 10 percent growth to $2,508 per container, marking the first double-digit rise in the composite index since last July. For Freightos, Asia-to-U.S. West Coast prices increased 13 percent to $2,788 per FEU, according to data revealed on Wednesday. The Freightos Baltic Index (FBX) bucked the trend of the other benchmarks, with Asia-to-U.S. East Coast prices seeing a bigger jump than their West Coast counterpart. Spot freight rates per container increased 20 percent to $4,223. 'Surging demand and these restrictions on capacity from out of place vessels and port congestion [at Chinese ports] are putting significant upward pressure on container rates,' said Judah Levine, head of research at Freightos, in Wednesday's weekly update. 'Rates are at their highest level since late February, and GRIs announced through mid-June could push prices up thousands of dollars more if demand stays elevated and congestion remains an issue.' Ongoing front-loading of imports will lead to big increases in spot rates on June 1, according to data from Xeneta. 'Average spot rates will rise at least 18 percent from the Far East to U.S. West Coast and 14 percent into the U.S. East Coast,' said Emily Stausbøll, senior shipping analyst at Xeneta. 'Data is being received from shippers paying far higher rates than this, so the market has the potential to increase even more dramatically in early June.' While a June spike could be in order, the combination of importers' front-loading and ocean carriers moving more shipping capacity to the trans-Pacific trade lane could be what slows rates down in the second half of 2025. Drewry's Container Forecaster expects the supply-demand balance to weaken again in the latter six months, which would cause spot rates to decline again for the back half. But the volatility and timing of rate changes will depend on the outcome of the ongoing legal challenges to President Donald Trump's tariffs and on possible capacity changes related to the introduction of the U.S. port docking fees on Chinese ships, which are uncertain. Xeneta's Stausbøll projects a longer-term decline in the third quarter as well, particularly when the expected period of front-loading ends. 'While tariffs are lower, they are still higher than they were previously, so there is every likelihood this will subdue consumer demand,' Stausbøll said in a May 21 blog post. 'Once shippers have built up inventories, they will not continue to front-load imports. Demand will therefore ease and carriers will once again be struggling to fill their ships. This means the traditional Q3 peak season will arrive earlier in 2025, but it should not take too long for spot rates to soften and continue the downward trend seen during Q1.' Currently, the base tariff rate on the majority of Chinese products is 30 percent after the U.S. and China entered into a 90-day tariff rollback. The agreement lowered the tariff rate from 145 percent for U.S. importers until Aug. 14. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-06-2025
- Business
- Yahoo
Trade Truce Crumbles as China Says US Violated Terms
A short-lived truce between Beijing and Washington has come to a crashing halt. After announcing a 90-day stay on punitive duties for China-made goods last month, President Donald Trump took to Truth Social on Friday to rail against the country's government, saying China 'totally violated' its agreement with the U.S. The Commander in Chief did not provide further details about the breach of terms. More from Sourcing Journal Trans-Pacific Ocean Freight Rates Continue Their Ascent on More Front-Loading How Should Brands Think About Cross-Border E-Commerce Amidst Uncertainty? Can Tech Plug the Gaps Between Immigration Policies and Reshoring Aspirations? The Chinese Commerce Ministry hit back on Monday, saying that the U.S. is 'provoking new economic and trade frictions' that 'seriously undermine' the agreement that was reached in mid-May. A spokesperson asserted that China has been 'strictly implementing' the terms that were agreed upon when officials from both countries met in Switzerland. The framework centered on lowering trade barriers and tariffs by 115 percent for three months while a more permanent deal is hashed out. 'Instead of reflecting on its own actions, the United States has groundlessly accused China of violating the consensus, a claim that grossly distorts the facts. China firmly rejects these unjustified accusations,' the spokesperson added. According to Chinese officials, the U.S. has invalidated the terms of the Geneva truce by halting the sale of software for designing computer chips to China's tech firms, taking aim at Huawei, a Chinese technology and electronics company, and revoking visas for Chinese students in the U.S. During a Friday appearance on CNBC, U.S. Trade Representative Ambassador Jamieson Greer said that China was 'slowrolling' compliance with the terms of the agreement, noting that he believes U.S. companies have been placed on Chinese blacklists and that exports of rare earth minerals to the U.S. have been restricted. One day earlier, Treasury Secretary Scott Bessent noted that negotiations between the world's two largest economies has been 'a bit stalled.' Volatility is poised to continue, with members of administration saying Sunday that the president's global tariff regime won't be derailed by a recent ruling from the Court of International Trade (CIT). Last week, the federal judicial body handed down a decision that Trump's universal baseline tariffs and reciprocal duties on more than 90 countries across the globe were invalid. The president overstepped his executive authority by attempting to use the International Emergency Economic Powers Act (IEEPA) to levy the sweeping import taxes, a panel of three judges said. Less than a day later, a Washington, D.C. federal appeals court implemented a stay on the CIT's decision as it reviews the details of the case and the ruling. 'Rest assured, tariffs are not going away,' Commerce Secretary Howard Lutnick said during an interview on Fox News Sunday. The president has 'so many other authorities that even in the weird and unusual circumstance where this was taken away, we just bring on another or another or another,' he added, referencing other trade laws and provisions that the administration could wield to continue to carry out its agenda. Throughout last week's judicial ping pong match, the president stayed mostly mum. But on Sunday, he commented on the issue, Truthing, 'If the Courts somehow rule against us on Tariffs, which is not expected, that would allow other Countries to hold our Nation hostage with their anti-American Tariffs that they would use against us. This would mean the Economic ruination of the United States of America!'
