The customs duties earthquake pushes the ship's industry to develop the crisis

Senior managers of the global shipping sector met this week in Long Beach, California, to attend a major annual conference, and they expected to discuss the market trends and challenges of supply chains. But they find themselves in the development of a crisis. President Donald Trump on Tuesday caused a radical transformation of free trade that stretched for decades with the largest commercial partner of the United States, as it imposed 25% of customs duties on the goods coming from Mexico and Canada. The White House also added extra fees to China, after a similar increase a month ago. This step caused a shock in the world trade and raised the fear of stagnation, consumer prices and logistical chaos. Although the escalation of customs duties was always one of the central issues in Trump’s policy, the cargo experts who participated in the “TPM25” conference organized by the S&B Global in Long Beach said they did not expect to implement its policy so hard. “It’s more like an earthquake,” said Cindy Allen, CEO of Consulting Company, adding, “You do your best to prepare, but if that happens, it’s 8.0 on the Richter scale. It’s a shock.” Changes in the fees while increasing uncertainty, the Minister of Trade Howard Lootnick said Wednesday that Trump is preparing to announce changes in the fees imposed on America’s trade partners in North America later that day. “He thinks of any sectors of the market, or maybe he is seen by giving them an exemption,” Lootnick said in an interview with BTV. He explained that some categories will still be subject to fees with 25%, while others can be released. But he pointed out that a broader commercial overview in April could lead to a new round of customs duties. Trump has always threatened to impose higher fees for years, and the possibility of major increases has been widely understood. In the ports of Los Angeles and Long Beach, the largest US port gate for Chinese imports, the load volumes have jumped significantly over the past few months, suggesting that importers have been transferred to ship awaiting possible commercial restrictions. This pattern is repeated again: During the first presidential term Trump, the Ports movement saw a sharp rise as companies are storing goods, but it has decreased after the start of customs duties on Chinese imports. According to Din Crook, an analyst at Datiight and Analytics, ship prices have jumped between the United States and Canada since Trump won the November election. “Obviously, the shipping companies are working to store the largest possible amount of goods,” Crook said, adding: “We have seen a real increase in border shipping rates, whether in terms of size or volatility in prices between the two countries, which is one of the highest rates we saw years ago.” Jose “GD” Gonzales, a customs broker in the city of Larido, Texas, has a warning about the consequences of the new fees, and he tried to warn his clients for weeks about the consequences of the new fees. But most of them have ignored his fear, with the confidence that the drawings will not come into effect, especially after the previous postponement of similar definitions on Canada and Mexico just a month ago. Then the shock came when the definition application began, and his phone didn’t stop ringing. Gonzales, a call to another, explained the biggest change in the rules of trade on the American-Mexican border in more than 30 years of his work in the field to his clients. For many companies whose world was relatively free of customs duties, things suddenly became a feverish race to ensure the money needed to pay 25% of the value of their imports. For many, this has the need to execute the minimum basic procedures, such as opening an account at the Customs Authority and the protection of the US borders to pay new taxes on imports. “It’s more like a cultural shock in every sense of the word. Everyone just waited to find out what would happen,” said Gonzalez, who also holds the position as president of the National Customs Agent Association. In various sectors, from truck transport to food to the private aircraft market, businesses in the region are chasing the new situation. CEO Miguel Gomez said discount claims on discounts to compensate fees at the truck transport company “Group Feletis Mexico” in the Border City Siodz Khuraiz, in the border city of Siodz Khuraiz. But he said he could not agree to it, because of the limited profit margin, and pointed out that the company would have to dismiss some of its 2600 employees if the definitions continued for a long time. He added: “We don’t really have many options to reduce costs. There is a lot of uncertainty and instability.” In Canada, Ugowork plans in Quebec, which specializes in the manufacture of spine batteries, to share the 25% tariff with its clients in the United States. But CEO Philip Boulembe warned, “but at some point this situation is not sustainable.” He indicated that he was considering opening a factory in the United States, where there were half of the company’s customers. In Bondi products, based in Toronto and the distribution of fresh fruits and vegetables, Vice President Paul Sando said the company could not carry a cost increase by 25% and that it would have to transfer at least part of it to customers. The affected goods include citrus fruits, tomatoes, peaches and berries. Sando pointed out that his business also has to do with agricultural products because it imports fruit from the United States or Mexico and then sells it to the northeast of the United States. He said, “I laugh because it is incredible, but it is indeed a double effect on the final consumer.” Anxiety in the private aircraft sector in the private aircraft sector has started waiting some potential US buyers, according to Greg Riv, CEO of Elevate Group, based in Miami, which specializes in hiring aircraft and providing aircraft consultations. Rayef pointed out that parts are a major concern, causing some potential buyers from ‘Bombardier’ ​​aircraft to fall and try to judge the total cost of ownership. For example, if anyone needs parts of the manufacturer in Quebec at a value of $ 500,000, the new fees will add an additional $ 125,000 dollars. “If you bought a plane from a Canadian factory, you practically connect yourself to any Canadian import definitions,” RIV said. While he was still trying to take up the extent of the rates on Tuesday morning, he expected “it would significantly affect the private aviation sector.” At the “TPM25” conference, there were reports on the statements of the Minister of Trade, Howard Lottenic, about the possibility of a compromise with Mexico and Canada, during a session that includes trade and customs expert mento. After receiving a storm questions from retailers and importers, Mento concluded the session with words in which he advised the participants to say, “Panic is very expensive, isn’t it?