
The Weekly Roar
In this week’s Roar: Clarity on tariffs, congestion at global ports, a new service between China and Europe, supply chain risks in MedTech, and a new record at the port of Los Angeles.
Months of talk about tariffs are about to become reality. This weekend, President Trump made official his plan to implement new tariffs this Tuesday. Canada and Mexico face tariffs of up to 25%, with China facing levies of an additional 10%. All three countries have voiced their opposition and plans for retaliatory measures. The impact on trade among the three N. American countries is yet to be seen, with the US having had free-trade agreements in place for decades. Trump has warned Americans they can expect some ‘pain’ as a result of these tariffs.
To get ahead of the Chinese New Year and potential U.S. tariffs, there’s been a surge in exports that has caused congestion at major ports across Asia, Europe, and North America. At this point, around 3.3 million TEUs, or 11% of the global container fleet, are delayed. Ports like Yantian, which handle a large share of U.S.-bound goods, increased capacity to manage the surge. Unfortunately, bad weather in the Atlantic and industrial actions at both French and Dutch ports have made delays even worse.
A new maritime shipping service has been launched between Ningbo, China, and Wilhelmshaven, Germany, offering the fastest sea route from Asia to Europe. The service reduces transit time to 26 days, nearly two weeks better than previous times. This is part of a China-Europe Express initiative that hopes to strengthen trade between the two regions, bolstering economic cooperation and providing more streamlined logistics.
The FDA’s medical device director has expressed concerns about ongoing supply chain risks. Issues include a lack of mandatory reporting, putting the US behind other regions such as the EU, which has more visibility into problems like medical shortages and their impact. This means other countries are in a better position to protect their patients. One goal of the FDA is new statutory authority requiring device shortage reports.
The Port of Los Angeles is riding a wave! It set a record, moving 1.7 million TEUs, which is nearly 20% higher than last year’s numbers. This makes it the port’s second-best year in its 117-year history. Having said that, the port’s executive director stated that they were still only operating at 80% capacity. Infrastructure improvements continue, with the port developing the second phase of an initiative that will integrate appointment systems at both Los Angeles and Long Beach ports.
For the rest of the week’s top shipping news, check out the article highlights below.