b'30American Journal ofTransportation ajot.com90,000 German brand luxury vehicles(AHEADcontinued froming is limited.page 28) Wallenius Whilhelmsen (WW) Abbottmadeitclearthatin their Q-1 2025 analysis wrote stuck in limbo at U.S. ports ACLwouldsimplystopcall- that the USTR port dues for car ingintheUSiftherewerentcarriersof$150/CEUwhen changesmadetotheproposedapplied to 300-350 US voyages By Stuart Todd, AJOT legislation. He said ACL wouldcouldexceed$300millionand concentrateonEuropeanandcommented, we [Wallenius Wil-Anestimated90,000Ger- teringthroughtoretailprices,appears to be adopting a far lessAsiantradelanesratherthanhelmsen]expectthisfeetobe man-brandluxuryvehiclesarethe premium segment is show- confrontationalstanceinorderpay the proposed fees associatedpassed on to the customers simi-currently stuck in limbo at USinginflationarysigns.Thetocloseadeal.Germannews- with a Ro/Ro ship built in Chinalar to EU ETS [European Union ports such as Los Angeles, NewPorsche Taycan Turbo S in Cali- paper Handelsblatt reported thatcalling at US ports.Emissions Trading System].York,Savannah,andHouston,fornia was listed at $210,000 anegotiators in Brussels could be accordingtoglobaleconomicfew weeks ago. But even thoughreadytoaccepttariffsof10%w haTsi n Thea nnex d emand : T ariFFs orn oandgeopoliticalresearchplat- the showroom price for the sameacross all the European UnionsSinceMarchmodificationsT ariFFsform PPR Mundial. model has risen to $235,000 dueexportsintotheUnitedStates,havebeendraftedtothebillAsthisarticlewasbeing Thisautomobileglutrep- to the perceived impact the wait- but only under certain conditions(versionsintheHouseandwritten[June12,2025]Presi-resents over $4 billion in idleing list remains full. However,and with the understanding thatSenate)thatwouldeasethedent Trump was quoted in press capital and is the result of a 25%formid-rangeluxurymodels,it would not be permanent. Thisburdenonoceancarriersreports of warning that auto tar-hike in US import tariffs whichmid-incomecustomersmayinthehopeofrestrainingthelargely containershipscallingiffs could be levied soon saying, President Trump has threatenedbaulk at paying an extra $5,000. Trump administration from put- US ports with Chinese built ves- I might go up with tariffs in the to increase to 50% next month iftinghigherdutiesonvehicles,sels.However,Ro/Rovesselsnot-too-distant future. negotiationswiththeEuropeanT alking Tough pharmaceuticals and electronics. were singled out for exceptionsIf the warning does indeed Union fail to lead to a trade agree- DespitereassuringwordsHandelsblattalsosaidthethatcouldleaveRo/Roopera- becomefact,themovecould ment,orperhapsevenbeforefrombothWashingtonandEU was, in return, ready to cut itstors currently calling US ports inhave a negative impact on rev-then if the mood takes him. Brussels that a trade deal can betariffs on U-made vehicles, anda precarious position.enuesforRo/Rooperators.In Foreverydayvehiclesreached,uncertaintyaboundstopossiblychangetechnicalorAccording to various reports,WWs Q1 presentation they cited remain in port beyond 72 hours,as to the outcome of the tarifflegal obstacles to make it easierAnnex III contains the relevantdata from S&P on the potential companies pay port operators annegotiations. for US automakers to sell theirinformation on potential legisla- impact of tariffs on Ro/Ro. The $8 parking fee which means theTrumpcontinuestotalkvehicles on the European market. tionimpactingRo/Rocarriers.chart with and without tariffs laid cost of the stockpiles inventorytough,warningthathemayEffectiveOctober14,2025,aoutthepotentialhittheRo/Ro rises to $20 million by the end ofsoonhikeautomobileduties,s everalP ossiBle fee in the amount of $150 perimport business in the US might the month. Nor is this the end ofarguingthatthiscouldtriggers cenarios CarEquivalentUnit(CEU)expect2025,notariffs3.7 the expense. The daily financingautomakersintospeedingupThe truth is there is little incapacity of the entering non-US- million units, with tariffs 3.4 mil-interest rate imposed by banksinvestments in the US, I mightthe way of visibility as to howbuilt vessel, effective as of Octo- lion units, -7%; 2026, no tariffs on each vehicle also erodes prof- go up with that tariff in the not- negotiations will play out or ofber 14, 2025. This fit in with the3.8 million units, with tariffs 3.2 itability as the stockpile periodtoo-distant future, he said at aknowingwhatscaleoftariffbroader industrial policy initia- million units, -15%; 2027, no tar-extends.EuropeanautomakersWhite House event. The higherhike European automakers willtive to create a robust Americaniffs 3.8 million units, with tariffs will either have to take the hit onyou go, the more likely it is theyend up being confronted with. shipbuilding sector. The USTR3.3 million units, -13%.this interest or be forced to sellbuild a plant here. Severalpossiblescenariosand legislators envision this feeNonetheless,S&Pexpects at a loss if the Trump adminis- However,commentatorsnotecouldlieahead.ThefirstseeswillincentivizeUS-builtcargrowth in global deep-sea vol-tration does not back down. thatitisapoliticalstrategyWashington and Brussels sittingcarrier vessels. umes even with the US market whichfailstorecognizethedown at the negotiating table inARo/Rooperatorcouldtaking a hit. For Ro/Ro operators l ack oFa uToa cTiviTy significanteconomicknock- July and agreeing that US importreceive a fee remission for up tothis presents a dilemma of vessel While an average of 31,000oneffectsitwouldprovoke.tariffs on European automobilesthree years if it orders and takesdeploymentasdemandshifts European-madecarspassedEven if German automakers doremain at 25%. This would seedeliveryofaUS-builtvesseland costs rise on the US leg. Ro/throughcustomsintotheUSnot completely withdraw fromthe brands with vehicles sittingof equivalent or greater capac- Rooperatorsalreadyarecon-eachweekinMay2024,thetheUSmarket,areductionin US ports cutting their lossesity.Avesseloperatorwillbetending with balancing rotations number had dropped to 20,000involumewilltranslateintoand distributing vehicles to deal- eligible for a fee remission forwith higher volumes coming out by the end of May -a 33% drophigher prices and fewer optionserships in the US. three years if it orders and takesof Asia and lower volumes from in import flows. for American consumers. In the second scenario, thedelivery of a US-built vessel ofthe US and Europe, tariffs add PPRMundialhighlightstwo parties refuse to back downat least equivalent size. another layer of complication to that at the Port Newark Ro/Roeu c ounTer -T ariFF andEuropesretaliatorytar- The obvious problem withdesirable routings.vehicle terminal in New Jersey,P ackage iffs come into effect along withtheproposedlegislationistheAnotheraspectoftheRo/models of the BMW X5, whichThe European CommissiontheU.S.increaseindutiestoUS has very little shipbuildingRodeploymentdilemmalies normallyleavethedockin36isnotaversetosterntalking50%. The trans-Atlantic flow ofcapacity and the building costswith the other freight carried hours,havebeenparkedthereeither, threatening to put a coun- vehicles slumps by as much asaretwo-to-threetimesthatofby Ro/Ro operators. With Trump forseveralweeks.Evidenceter-tariffpackage,worthhun- 40%andbecomespermanent,other shipbuilding nations suchAdministrationsabhorrenceof of a lack of auto activity, cranedreds of billions of dollars, onwiththeautomotivesectorinasChina,SouthKoreaandwindprojectsandvirtuallyall drivers at the terminal have beenthe table, affecting US exportsGermany in particular, facing aJapan.Additionally,theshiprenewables,theshipmentsof transferred to the container yardto the EU, ranging from whiskeysignificant decline as exports toconstruction times are consider- High&Heavy(HH)freight, to fill their working hours. to agricultural products such asits most lucrative market dry up. ably longer and the access to thelike those associated with wind Meanwhile,AudisQ5California almonds. (STUCKcontinued onbasic construction materials and(AHEADcontinued on shipmentsfromMexico,trans- Butatthesametime,itpage 42) parts available from US sourc- page 31)ported by train, are just sitting in the free zone in Houston, with truck drivers waiting for deliv-eryorders.AsforLosAnge-les, the storage area, reportedly alreadyburstingattheseams duetoPorschefront-loading shipments,hasnowreached capacity. The port authority has converted an empty plot of land south of the city into a tempo-rary parking lot to accommodate the swelling stock.At the port of Long Beach, theautomobileterminaloper-ated at 85% capacity before the tariff crisis, but this fell to 40% inMay.Thelowervolumeof vehicleshipmentsisweigh-ingontheoperatingmargins oftrucking,railoperatorsand warehouse operators.F allingi nvenTory , r isingr eTailP ricesOnevehiclevaluationand automotiveresearchcompany reports that as of the end of May, Germanmid-rangeinventory nationwide had shrunk by 28% while in contrast, South Korean brands in the same segment saw double-digit increases in stock.As for the import tariffs fil-'