Looking for Loopholes

In this week’s Roar: The supply chain impact of the conflict in Iran, looking for loopholes in tariffs, surging diesel prices, the challenges of rebuilding American maritime power, and a new survey on logistics technology.

Jaguar Freight CEO, Simon Kaye, has published a client advisory on the Iran conflict. The regional war is spreading with disruptions that include the Strait of Hormuz and key supply routes shutting down, global shipping lines suspending bookings, and vessels being redirected. All of which has resulted in congestion at Asian ports and rising costs. Currently, about 1.4% of the container fleet is stuck in the Gulf, further tightening global capacity. Energy prices are surging, and war risk premiums are climbing, so companies should brace for higher ocean and freight rates in the weeks ahead. For its part, the FMC warned carriers about any war-related surcharges and the requirement that they must still comply with U.S shipping regulations.

The Trump administration is looking for loopholes after the Supreme Court struck down tariffs under IEEPA. They’ve pivoted to Section 122 and 232 to justify new trade measures, although the legal basis of this is already being challenged in court. Meanwhile, Section 232 investigations have expanded to cover goods from automobiles to pharmaceuticals, further complicating the tariff landscape. In related tariff news, the United States Trade Representative has initiated investigations under Section 301 of the Trade Act of 1974 regarding the acts, policies, and practices of certain economies relating to structural excess capacity and production in certain manufacturing sectors. You can read more here. The CBP also issued an update indicating that a process for refunds is still a few weeks away.

The US National Diesel Average has surged by $1.28 per gallon, year over year. A lot of that, not surprisingly, is due to the ongoing conflict in the Middle East and shutdown of tanker traffic through the Strait of Hormuz. The increase, mostly due to supply chain shocks and global shipping delays, is having an impact domestically for U.S. companies by squeezing carriers and pushing up freight costs across the entire logistics sector.

The U.S. Maritime Administrator is warning that rebuilding American maritime power requires more than just shipyard expansion. It demands revitalizing the entire maritime ecosystem. The U.S. currently produces only 0.1% of global commercial ships, so the administrator is urging a holistic approach, one that includes strengthening logistics, cargo generation, workforce, and innovation. Doing that should restore competitiveness and resilience in the face of global instability and rapid technology changes.

A new survey reveals that nearly 42% of supply chain professionals lack confidence when it comes to evaluating logistics technology options. This highlights the need for strategy-first decision-making. Only 4% of those surveyed strongly agreed that their organization distinguishes between tech investments and broader supply chain strategy. That’s a signal that there’s a clear opportunity for more structured and aligned technology planning.

For the rest of the week’s top shipping news, check out the article highlights below.