As any experienced player in the logistics industry can attest to, a lot can change in a short amount of time. The past month has been no exception, given the rollout of various trade policies posed to usher in substantial and not yet fully understood outcomes. To stay abreast of today’s unique and evolving development, read these five articles sharing the most relevant shipping news.
The Trump administration followed through on its promise to enact tariffs on key U.S. trade partners, setting the stage for a significant shake-up to the global economy. The levies officially went into effect on March 4 after Trump said there was “no room left” for negotiations, Transport Topics reported. Two days later, he postponed 25% tariffs on many imports from Mexico and some from Canada for another month. China did not get a reprieve — 10% tariffs already placed on Chinese imports were doubled to 20%. The opening moves of a possible trade war prompted concerns about higher U.S. inflation, escalating tensions — Canadian Prime Minister Justin Trudeau announced $107 billion worth of tariffs on U.S. in retaliation — and a noticeable drop in markets. “Canada has their list ready,” one trade consultant said. “The EU has their list ready. It’s going to be tit for tat.’’
Coss-border logistics experts have begun to weigh in on how supply chains can best adjust to the Trump administration’s plans to remove widespread de minimis treatment. An executive order signed in early February dictated imported products from China worth less than $800 would no longer be exempt from duty customs, though the change is currently on hold until “adequate systems are in place,” Supply Chain Dive reported. One CEO suggested companies pivot to domestic-based third-party logistics partners to avoid exposure to trade policies that could target other trading partners. Others recommended that importers weigh high customs brokerage fees, labor costs, and alternative entry procedures in drafting their response.
Unseasonable weather, insect conditions, and uncertain trade policies have disrupted one produce industry expert’s outlook on the current growing season, The Produce News reported. Pro*Act, which specializes in produce supply chain programming, detailed in a recent update that strong winds are slated to pass through California, where crops have already been subjected to irregular freezes and heat waves. These winds may damage weakened leafy greens, just as growers must contend with a “noticeable” arrival of flies, gnats, and aphids difficult to remove once killed by pesticides. What’s more, broken-down crops can damage harvest machines and see a reduced shelf life. Tariffs also stand to impact the supply chain that brings so much produce from the Canada and Mexico markets.
The federal government has restricted three different companies from operating in the produce industry after each apparently failed to pay sellers and mandated-reparations. The U.S. Department of Agriculture ordered that California-based Harvest Pro Inc., Illinois-based Fruit Point Produce Inc., and Texas-based E & R Produce compensate thousands of dollars to their respective sellers after each company skipped out on contractual obligations, AndNowUKnow: Fresh Produce Industry News recently reported. But after the companies further failed to pay those reparations, the USDA — stepping into the dispute as outlined by the Perishable Agricultural Commodities Act — suspended the license those principal operators would need to work in the produce industry.
Tariffs on goods entering the U.S. from Mexico will have a unique impact on fresh produce importers, Dante Galeazzi, the CEO of the Texas International Produce Association recently told The Packer. That’s because few importers may have enough capital to offset the up-front price of tariffs, which will reduce the availability of certain produce — like avocados, bananas, limes, mangoes, and berries — grown off-season and outside the nation’s borders. This change may also increase the price of the now scarcer produce for consumers, Galeazzi said. Not to mention, suppliers impacted by the tariffs may end up seeking out other buyers and develop new supply chains that exclude American buyers.
A trusted logistics partner can help navigate evolving U.S. trade policies. VCPB Transportation runs ahead of the pack, providing a wide range of expert solutions.
Start shipping with VCPB today to guarantee your shipments arrive on time and worry-free.
VCPB Transportation
600 Meadowlands Pkwy Secaucus, NJ 07094
(201) 770-0111
