Dear all,

Did You Know That…

…US trade court blocks Trump's sweeping tariffs. What happens now? A US federal court has blocked President Donald Trump's sweeping global trade tariffs, in a major blow to a key component of his economic policies.

The Court of International Trade ruled that an emergency law invoked by the White House did not give the president unilateral authority to impose tariffs on nearly every one of the world's countries. The New York-based court said the US Constitution gave Congress exclusive powers to regulate commerce with other nations, and that this was not superseded by the president's remit to safeguard the economy. The Trump administration said it would appeal within minutes of the ruling.

… Shippers hold their breath as Trump appeals court ruling that tariffs are illegal. Any shipper waking up to discover that large swathes of President Trump’s tariffs have been ruled illegal should not celebrate yet. The White House has submitted an appeal against the judgment by the US Court of International Trade that ruled that the president had overreached his authority in imposing reciprocal and fentanyl tariffs by using the International Emergency Economic Powers Act (IEEPA). 

…Transpacific spot rates still rising but pace of gains has slowed.

·         Spot indices showed much lower dollar-per-feu gains this week than they did last week, immediately following the US tariff reprieve

·         Transpacific spot rates are still down over 30% year on year despite recent gains, and annual comparisons will worsen in the months ahead unless rates spike

·         Rates are expected to increase further, but to nowhere near the same extent seen during the Red Sea crisis and the pandemic; the duration of current rise is expected to be shorter.

Spot rates in the transpacific trades were up again this week as shippers took advantage of the tariff reprieve. But upward momentum has slowed — at least temporarily —and rates remain low compared to 2024.

…Transpacific carriers rush to redeploy tonnage amid demand surge.

·         Liner capacity to the US west coast has jumped by 5% in the past week, with further increases expected in the coming weeks

·         A 90-day trade reprieve has created a window for shippers to move stalled Chinese cargo destined for the US

·         Carriers may reallocate vessels to transpacific trade, potentially increasing blank sailings elsewhere.

Transpacific carriers are ramping up capacity to meet surging cargo demand following a temporary pause in the China-US trade war. Analysts report a sharp increase in liner capacity to the US west coast, as spot rates rise and congestion looms.

…Forwarders welcome MSC decision to continue 'critical' South Africa-USEC service. South Africa’s freight forwarders have welcomed a decision by MSC to continue its direct weekly service to the US.The world’s largest shipping line announced yesterday it would relaunch its US-South Africa service in October, after its current cooperation agreement with Maersk expires.

…Shippers brace for rate rise as smart phones expected to drive air cargo market. The overwhelming majority of air cargo players, according to a new survey, expect airfreight rates to rise globally.

…We owe today’s common colour of the carrot, orange, to Dutch farmers from the 15th and 16th centuries who crossed yellow with white carrots. Their breeding also expressed their support for the royal house of Orange-Nassau, which still reigns in the Netherlands today.

…This DYKT news bulletin will be published on the website as well, go to www.eaanetwork.com.

Have a good weekend ahead !