With tariff and other issues turning the TEUs on and off like a faucet, Europe’s ports are facing both the problems of congestion and alternatively issues associated with disruption such as blank sailings.
France has joined Germany in demanding an outright withdrawal of an EU law on ‘ethical’ supply chains, which, if supported by other member states, would take the bloc’s pro-business, ‘less-green’ drive to another level and potentially have a positive bearing on negotiations with the Trump administration to secure a trans-Atlantic trade deal.
Shippers have arguably never been confronted with such a succession of crises in recent years, resulting in severe disruptions to supply chains – the COVID pandemic, the war in Ukraine, the Houthi attacks on ocean shipping in the Red Sea, and most recently, Donald Trump's mission to ‘rebalance’ international trade.
The project was launched on the sidelines of the G20 summit in New Delhi in September 2023 by seven heads of state from India, the United Arab Emirates (U.A.E.), Saudi Arabia, France, Germany, Italy, the United States and the president of the European Union.
The Trump Administration’s global tariff attack muddies the outlook of ocean carriers in 2025…and maybe beyond.
With the tariff war creating economic turbulence nearly everywhere, it’s time to buckle up as it might be a bumpy ride.
Leading French cognac maker Rémy Martin, part of the Cointreau group has put two-thirds of its 390-strong workforce on part-time working as a direct result of a ‘double whammy’ of tariff hikes by China and the U.S. These two countries account for around 80% of the company’s sales.
According to a recent article in The Sunday Times (of London), entitled Chaos at European ports, as trade war leaves ships in limbo, queues of hundreds of ships are building up at maritime gateways in Germany, Italy, the Netherlands, and the UK amid tit-for-tat tariffs and plans to impose a $1 million fee on Chinese-linked vessels docking at US ports.
Logistics service providers (LSP) to the automotive sector have resorted to front-loading to avoid 25% tariffs imposed on vehicles imported to the U.S., effective 2 April, but the volumes involved were not that significant, according to industry sources.
France’s President has called for a suspension of European investments in the U.S. in the wake of the Trump administration’s decision to drastically raise trade tariffs with most countries.
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