The United States announced a substantial increase in tariffs! Up to 100%! China responded urgently, freight rates rose sharply, MSC launched the Diamond Class
The United States announced a substantial increase in tariffs! China responded urgently
On May 14, 2024, U.S. time, the Office of the United States Trade Representative (USTR) released the results of the four-year review of the 301 tariffs imposed on China.Announced that on the basis of the existing 301 tariffs on China, the tariffs on electric vehicles, lithium batteries, photovoltaic batteries, key minerals, semiconductors, steel and aluminum, port cranes, personal protective equipment and other products imported from China will be further increased.Focus on seven industries)Tariffs increased to 25% to 100%.China firmly opposes and has lodged solemn representations.
A statement released on the White House website said:The Biden administration will continue the tariff policies implemented by its predecessor, the Trump administration, and increase tariffs on other goods.
The White House announced that the new measures will affect $18 billion worth of goods imported from China, including steel and aluminum, semiconductors, batteries, key minerals, solar cells and cranes.According to the White House official website, tariffs on Chinese electric vehicles will be increased from the current 25% to 100%.
China responds: Resolute measures will be taken
The spokesperson of the Ministry of Commerce pointed out that the US abused the 301 tariff review procedure for domestic political considerations and further increased the 301 tariffs on some Chinese products, politicizing and instrumentalizing economic and trade issues. This is a typical political manipulation, and China expresses strong dissatisfaction with this. The WTO has long ruled that the 301 tariffs violate WTO rules. Instead of correcting it, the US has insisted on its own way and made one mistake after another.
The spokesperson said that the US's increase in 301 tariffs violates President Biden's promise of "not seeking to suppress or contain China's development" and "not seeking to decouple from China", and is not in line with the consensus reached by the two heads of state. This will seriously affect the atmosphere of bilateral cooperation. The US should immediately correct its wrong practices and cancel the tariff increase measures on China. China will take resolute measures to defend its own rights and interests.
Chinese Foreign Ministry spokesperson Wang Wenbin said on the same day:China has always opposed unilateral imposition of tariffs in violation of WTO rules and will take all necessary measures to safeguard its legitimate rights and interests.
Agence France-Presse reported that the United States announced on the 14th thatTariffs will be imposed on a range of goods imported from China, mainly targeting strategic areas such as electric vehicles, lithium batteries, steel and key minerals.
The move comes as U.S. President Joe Biden prepares for a repeat of his 2020 battle with rival Donald Trump in November's election. Officials criticized the trade record under Trump in the matter.
Tariffs on electric vehicles are expected to rise to 100% in 2024, while tariffs on semiconductors are expected to rise to 50% in 2025, according to reports.
The move follows a review of tariffs imposed by Washington during its trade war with Beijing, with then-President Donald Trump slapping duties on about $300 billion worth of goods from China.
The action was also taken under a so-called Section 301 investigation, the main tool used by the Trump administration to justify its tariffs, which require the U.S. Trade Representative to investigate the impact of tariffs after four years.
The report said,Washington will also raise tariffs on steel and aluminum products and lithium-ion batteries. In addition, tariffs on natural graphite and some other key minerals will increase to 25%, and tariffs on solar cells will increase to 50%.
A senior U.S. official, speaking on condition of anonymity, said some of the tariff increases would take effect later to allow a transition period for the United States to expand domestic production.
According to a report on the Bloomberg News website on May 13, U.S. Treasury Secretary Yellen said on the same day that she hoped China would not launch "significant retaliation" against any measures taken by Washington to protect investments in key emerging industries, and stressed that the United States could not allow these emerging industries to be "destroyed" by Chinese competition.
“Hopefully we won’t see a major response from China — but that’s always a possibility,” she said.
Port crisis! Operations interrupted! Shipping giant urgently releases...
The Teamsters of Canada (TCRC), which represents more than 9,000 employees of Canadian National Railway (CN) and Canadian Pacific Kansas City Railway (CPKC), announced on May 1 that its union members voted overwhelmingly in favor of a strike, and that they would strike as early as May 22.
The president of TCRC said that the simultaneous shutdown of CN and CPKC would disrupt the supply chain.It's probably on a scale that Canada has never experienced.
The move comes after a major strike at the Port of Vancouver, where about 52 ships of grain were loaded and held up. A professor of operations management at Western University said a rail strike or shutdown would have a much greater impact on Canada's supply chain than the Port of Vancouver strike.
It is understood that the contract between the railway company and the union workers expires on December 21, 2023. If the two sides fail to reach a new agreement this time, railway freight and passenger services across Canada will be interrupted.
Railways are vital to Canada's economy because of its vast size and the fact that exports of grain, potash and coal rely heavily on rail transport.
Maersk urgent release!
Faced with the threat of a possible strike by Canadian railway workers, in order to ensure the continuity of the supply chain and reduce potential congestion, shipping giant Maersk has issued emergency measures to mitigate the impact of potential shutdowns. The logistics adjustment plan is as follows:
Optimizing West Coast Port Operations:Maersk will work closely with CN, CPKC and terminal operator DP World to accelerate and optimize operations at Canada’s west coast ports and reduce congestion by, for example, transferring cargo from Centerm in Vancouver to the Port of Prince Rupert, dispersing transportation pressure and improving overall logistics efficiency.
Adjustment of Maersk TP1 service call points:Maersk will adjust its TP1 service to use Tacoma as a temporary port for U.S. import and export rail cargo on the next four sailings in response to a possible strike.
This adjustment will ensure that goods can continue to flow and mitigate logistics disruptions that may be caused by strikes.
- Maria Y – Voyage 419N 422S
- Santa Barbara – Voyages 420N 423S
MSC Domna X – Voyages 421N 424S
· GSL Effie – Voyage 422N 425S
TP1 is a service provided by the 2M Alliance (MSC & MSK), calling at the Asian ports of Xiamen, Yantian, Ningbo, Shanghai, Busan and Yokohama.
Review rail routes and transit times:Maersk will review viable rail routes and assess transit times to U.S. destinations via Tacoma.
It helps to find alternative logistics routes to ensure that the goods reach their destination on time.
Evaluating Trucking Options:Given the potential trucking constraints for West/East-East/West intra-Canada transport, existing trucking options will be reviewed and possible alternatives explored.
By implementing the above logistics adjustment plan, Maersk said it will strive to alleviate the logistics disruptions and congestion problems that may be caused by the Canadian railway workers' strike and ensure the continuity and stability of the supply chain.
Maersk also warned that if a strike occurs, there could be severe backlogs and knock-on effects, and if the disruption lasts more than a few days, it could extend the recovery period.
In addition, according to the latest news from Reuters, a Canadian government official said yesterday that the Canadian government is taking action to postpone a possible strike.
National strike! Port operations interrupted!
In addition to the possible strike in Canada, Argentina is also facing the impact of the strike. On May 9 local time, the national strike launched by the General Confederation of Labor, the largest labor union in Argentina, may paralyze the country.
This strike will affect the normal operation of various industries and will have a serious impact on the economy. The strike will cause major disruptions to transportation and business operations.It will affect the operations of all ports.
Kuehne + Nagel issued a warning on its official website: Unions across Argentina will start a 24-hour national strike on May 9. Cargo transportation and port operations in Buenos Aires are expected to be disrupted.
Please, cargo ownersMake shipping plans and emergency plans in advance, and pay close attention to local strike dynamics, understand the cargo node information in transportation, so as to update the next transportation plan and avoid unnecessary losses!
90% of trade will be zero tariff! Officially effective from July 1st!
According to the People's Daily, the China-Serbia Free Trade Agreement has made new progress. China announced thatThe agreement will come into force on July 1 this year.After the China-Serbia Free Trade Agreement came into effect,The two sides will mutually eliminate tariffs on 90% of tariff items, of which more than 60% will be eliminated immediately after the agreement takes effect. The final import volume of zero-tariff items on both sides will reach about 95%.
China-Serbia Free Trade Agreement makes new progress
In 2023, China and Serbia signed a free trade agreement, which is the first free trade agreement signed between China and a Central and Eastern European country. Serbia became China's 29th free trade partner. In China's free trade zone network, the China-Serbia free trade agreement is noteworthy for two reasons: from a regional perspective, it is the first free trade agreement signed between China and a Central and Eastern European country; from a historical perspective, it took less than a year and a half from the official launch of the negotiation of the agreement in April 2023 to its full completion, and then to the signing of the agreement and its formal entry into force, which is rare in the free trade agreements signed by China.
According to the head of the International Department of the Ministry of Commerce of China,After the China-Serbia Free Trade Agreement comes into effect, the two sides will cancel tariffs on 90% of the tariff items, of which more than 60% will be cancelled immediately after the agreement comes into effect. The final import volume of zero-tariff tariff items of both sides will reach about 95%.Specifically, Serbia will include automobiles, photovoltaic modules, lithium batteries, communication equipment, mechanical equipment, refractory materials, and some agricultural and aquatic products that China focuses on into zero tariffs, and the tariffs on relevant products will be gradually reduced from the current 5%-20% to zero. China will include generators, electric motors, tires, beef, wine, nuts, etc. that Serbia focuses on into zero tariffs, and the tariffs on relevant products will also be gradually reduced from 5%-20% to zero. This means that in the future, China's exports of advantageous products such as automobiles, photovoltaic modules, and lithium batteries to Serbia will be further expanded, and Serbia's main export products such as beef, wine, and nuts will also enter the Chinese market at more favorable prices. In addition, China and Serbia have also made legally binding commitments to each other in the agreement, including rules of origin, customs procedures and trade facilitation, sanitary and phytosanitary measures, technical standards and other aspects. This will provide a more stable and transparent business environment for enterprises of the two countries to carry out cooperation and further enhance the level of trade facilitation between the two countries. The head of the Ministry of Commerce said that the promotion of trade liberalization and facilitation by China and Serbia will not only help expand bilateral trade, but also promote investment cooperation and industrial chain integration between the two sides, better play their respective comparative advantages, and jointly enhance international competitiveness. In addition to bilateral economic and trade cooperation, the joint construction of the "Belt and Road" will also benefit from the entry into force of the China-Serbia Free Trade Agreement. Liu Zuokui said that considering that Serbia is an important partner of China in the joint construction of the "Belt and Road", the entry into force of the China-Serbia Free Trade Agreement will make the trade ties between the two sides more reliable and the economic and trade cooperation upgraded from the level of institutional arrangements, "just like adding new firewood to the burning flame", and help to build the "Belt and Road" with high quality.
China-Serbia trade volume to grow 31.1% in 2023
The Republic of Serbia is located in the north-central part of the Balkan Peninsula in Europe, with a total land area of 88,500 square kilometers. Its capital, Belgrade, is located at the confluence of the Danube and Sava rivers, at the crossroads of the East and the West. In 2009, Serbia became the first country in Central and Eastern Europe to establish a strategic partnership with China. Today, under the framework of the Belt and Road Initiative, the governments and enterprises of China and Serbia have carried out close cooperation to promote the construction of Serbia's transportation infrastructure and drive local economic development. China and Serbia have carried out a series of cooperation under the Belt and Road Initiative, including infrastructure projects such as the Hungary-Serbia Railway and the "Danube Corridor". These projects not only facilitate transportation, but also give wings to economic development. In 2016, China-Serbia relations were upgraded to a comprehensive strategic partnership. Industrial cooperation between China and Serbia continues to heat up, bringing significant economic and social benefits. In recent years, with the signing of visa-free and driver's license mutual recognition agreements and the opening of direct flights between the two countries, the number of personnel exchanges between the two countries has increased significantly, cultural exchanges have become increasingly close, and the "Chinese fever" in Serbia continues to heat up. Customs data show that in 2023, the total bilateral trade volume between China and Serbia was 30.63 billion yuan, a year-on-year increase of 31.1%. Among them, China exported 19.0 billion yuan to Serbia and imported 11.63 billion yuan from Serbia. In January 2024, the bilateral import and export volume of goods between China and Serbia was 424.9541 million US dollars, an increase of 85.2135 million US dollars compared with the same period in 2023, a year-on-year increase of 23%. Among them, the total value of China's exports to Serbia was 254.5534 million US dollars, a year-on-year increase of 24.9%; the total value of China's imports from Serbia was 170.4007 million US dollars, a year-on-year increase of 20.2%.
European and American routes will increase by another $1,000 starting today! MSC launches Diamond Class
The reduction and consolidation measures implemented by shipping companies during the May Day holiday have had a significant impact on market freight rates, resulting in a sharp increase in freight rates. Originally, the freight rate per container on the US West Coast was about US$4,200, the US East Coast was about US$5,300, and the European route was about US$3,500. However, according to the latest news,Freight rates on routes to Europe and the United States will be uniformly increased by US$1,000 on the 15th.
It should be noted thatA large shipping company has notified European routes that an additional peak season surcharge of US$600 will be imposed between the 22nd and 31st of this month.Senior executives in the shipping industry expressed concern about the continued rise in freight rates.This may further reduce consumer purchasing power and bring a series of market sequelae.;at the same timeThe continued high freight rates not only make it difficult for many freight forwarding companies and foreign trade enterprises to bear, but also cause the delayed shipment of completed goods, resulting in a backlog of goods at the port, which in turn affects the payment of goods and the scale of subsequent orders.
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Mediterranean Shipping Company (MSC), the world's largest liner company,The Diamond Tier rate, which was implemented during the pandemic, has been reintroduced, which is a rate that guarantees space..in,The freight rate per container on the US West Coast route has risen to US$8,000, and on the US East Coast route it has risen to US$10,000. The effective date is May 15 to May 31.Further price increases are planned in early and mid-June. MSC's guaranteed space rates are nearly multiples of current rates.
Most shipping companies and freight forwarders said they have not received an official notice from MSC, and other shipping companies have not taken similar actions, but have only notified that starting from May 15, the price of each container on the US route will increase by US$1,000, and the price of each container on the European route will increase by US$1,500. The market is also observing whether other shipping companies such as Maersk will follow MSC's example and launch nominal freight rates such as Premier during the epidemic.For shippers, no matter what reason the shipping companies use to significantly increase freight rates, they are essentially paying a higher price to purchase shipping space.Shipping company executives pointed out that the current situation is that the US line is full until the end of May, while the European line is full until the first or second week of June. This is mainly because the European line ships are severely affected by the Red Sea crisis, resulting in chaotic shipping schedules. In addition, compared with Asian ports,European ports are less efficient and time delays may lead to port congestion, which will further affect the dispatch of containers and aggravate the shortage of containers.
As demand in Europe and the United States gradually recovers, importers tend to increase imports to ensure the stability of the supply chain due to concerns about shipping delays. Although this situation is not expected to be as serious as during the epidemic, according to the current freight rate development, freight rates are already at a very high level. The shipping company has issued a notice that from June 1, freight rates on the European and American lines will increase by another US$1,000, and an additional peak season surcharge of approximately US$600 will be charged. CMA CGM's official website announced that from June 1 (loading date), the FAK rate from Asia to Northern Europe will be raised again, US$3,200 per box (20-foot container) and US$6,000 per large box and refrigerated container. Industry insiders said that they had never expected that the market demand would be so large after the May Day holiday. In response to the May Day holiday, shipping companies generally increased the proportion of blank flights by about 15-20%. Now many goods planned to be shipped can only wait for flights in June.
Today, the combination of the Red Sea crisis and the shipping companies’ control and adjustment strategies has once again caused freight rates to soar, which has led to concerns that the purchasing power of end consumers in Europe and the United States will be affected, which may lead to a reduction in orders. The same mistake was made after the epidemic, when demand plummeted and freight rates fell to the bottom, and they never recovered.Although the market outlook for the third quarter is not pessimistic at present, the industry is generally worried that the peak season may not be prosperous.Under the current pressure of overcapacity, shipping companies hope to absorb the excess capacity by having ships bypass the Cape of Good Hope during the Red Sea crisis, and combine it with the strategy of controlling the cargo space to make a fortune when freight rates rise sharply, so as to cope with the possible rapid decline in freight rates in the future. However, industry insiders believe that if freight rates continue to rise and affect consumer purchasing power, the market will naturally adjust. Of course, if the Red Sea crisis can be resolved quickly, the current high freight rates are expected to fall quickly.
"The world's first"! Successfully delivered!
"Green Energy Ying" was successfully delivered!
On May 15, the world's first fifth-generation "Changheng Series" 174,000 cubic meter large transport ship "Green Energy Ying", independently developed, designed and built by Hudong-Zhonghua Shipbuilding, a subsidiary of China Shipbuilding Group, was named and delivered at the Hudong-Zhonghua Changxing Island factory 5 months ahead of the contract period.
This "super offshore refrigerated truck" innovatively developed by China, which represents the highest technological level in the field of large LNG transport ships in the world today, has finally turned from a construction drawing into a real scene.
Its emergence will become China'sLNG CarrierA landmark event in the field's transition from following to leading.
The Green Energy Ying has a total length of 299 meters, a beam of 46.4 meters and a depth of 26.25 meters. It is classed by the American Bureau of Shipping (ABS) and the China Classification Society (CCS).
It uses the China Shipbuilding WinGD 5X72DF2.1 dual-fuel main engine equipped with the latest intelligent control exhaust gas recirculation (iCER) system technology.
This is the first ship of the "CNOOC Medium- and Long-term FOB Resource Supporting LNG Transport Ship Project", the largest LNG transport ship construction project in my country so far.
It is of great significance to ensure the safety of my country's energy transportation, effectively enhance the independent and controllable capabilities of my country's LNG transportation industry chain, and help my country build a strong manufacturing country and a strong maritime country.
This "Changheng Series" ship type, which integrates the latest design concepts, the best technical equipment, the strongest environmental performance, the most forward-looking, and the essence of the first four generations of LNG ship designs of Hudong-Zhonghua, has four significant highlights.
——Fast performance, low comprehensive energy consumption
The adoption of Hudong-Zhonghua's fourth-generation double skeg line shape achieves the best match between reducing self-propulsion resistance and improving stern propulsion efficiency, and obtains excellent propulsion chain integrated coupling efficiency.
Through multiple rounds of European tank experiments, it has been proven that the ship can achieve excellent sailing efficiency in both medium and high speed ranges, and compared with the previous generation of ships, the carbon emissions per day of sailing are reduced by more than 10 tons.
——Good low temperature performance and wide cabin compatibility
This type of ship is designed with full consideration of compatibility and versatility. It can be equipped with both NO96 series containment systems and MARK III series containment systems.
Especially when equipped with the latest generation of NO96 Super+ system, the evaporation rate is reduced by 15% compared with the previous generation L03+ system, reaching 0.085%, providing a wider oil and gas balance speed range for low-carbon navigation.
It can reach 120 LNG shore terminals on all continents around the world and has excellent global versatility.
——Light empty ship, strong cargo capacity
The whole ship adopts an integrated lightweight design concept, optimizing the empty ship weight from multiple dimensions. Compared with the previous generation of ships, the whole ship has reduced its weight by more than 1,500 tons, and the cargo hold loading rate is higher, and each voyage can carry an additional 800 cubic meters of LNG.
——Smart operation and maintenance, good route matching
The ship can be equipped with an optional reliquefaction system of 1.5 to 2.3 tons, which can adapt to the different balanced utilization requirements of boil-off gas on short, medium and long-distance routes. The ship has strong economical operation and can efficiently adapt to various operational requirements of diversified routes.
It is understood that the "CNOOC Medium- and Long-Term FOB Resource Supporting LNG Transport Ship Project" is divided into Phases I and II, and a total of 12 174,000 cubic meter LNG ships will be built.
If fully put into operation, about 7 million tons of LNG will be shipped back from all over the world each year, which can meet the needs of 54 million households for nearly a year. This has important practical significance for adjusting my country's energy structure, improving environmental quality, improving people's living standards, and promoting the coordinated development of economy and environment.
For a long time, my country's LNG imports have been mainly delivered by the seller at the port, and the transportation rights are controlled by large international resource suppliers. Compared with major importing countries such as Europe, Japan and South Korea, my country's independent LNG transportation capabilities are relatively weak.
China National Offshore Oil Corporation's innovative trade form of medium- and long-term FOB (free on board) will provide more operational convenience for shipping and international trade of goods, and greatly enhance the trade flexibility of resource importers.
Therefore, it is important to have an LNG transport fleet that can be dispatched autonomously and quickly respond to market changes by optimizing resource allocation.
It will help enhance my country's LNG transportation autonomy, while ensuring the security and stability of energy imports and supply, and strengthening my country's resource bargaining power and international voice.
South Korea announces consumer chemicals that require safety verification
South Korea has published the names of consumer chemical products subject to safety verification and their safety and labeling standards. These products are designated and publicly notified as risky products by the Minister of Environment based on risk assessments conducted under the Consumer Chemicals and Biocides Safety Control Act.
Individuals or entities that produce or import products included in the list of consumer chemicals subject to safety verification must obtain safety confirmation from designated inspection and testing agencies every three years. After confirmation, an application for confirmation must be submitted to the Korea Institute of Environmental Industrial Technology. Individuals or entities that produce or import consumer chemicals for which safety standards have not yet been announced must provide information on the chemical substances contained in the products to obtain approval from the Ministry of Environment. This requirement applies to products such as humidifiers, infectious disease disinfectants, other preventive fungicides, insect repellents, sanitary preventive insecticides, and sanitary insect repellents. In addition, individuals or entities that intend to sell or distribute safety-verified consumer chemicals whose safety has been confirmed or approved for marketing must comply with product labeling standards.
The original text of the regulation can be found on the WTO official website:
https://members.wto.org/crnattachments/2024/TBT/KOR/24_02243_01_x.pdf
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