European Port Congestion Eases, But Long-Term Pressures Remain

European port congestion has shown signs of easing in early June, bringing temporary relief to shippers and logistics providers. However, systemic pressures suggest the situation remains fragile, with the potential for renewed disruption as the summer peak season approaches.

According to Flexport, ports such as Hamburg, Antwerp, and Bremerhaven have begun clearing long-dwelling containers, and vessel delays have temporarily declined. This marks a notable shift from earlier in the year, when widespread congestion across Northern Europe caused ripple effects throughout the supply chain.

The recent improvement can be attributed to several short-term factors, including faster container movement, adjustments in carrier rotations, and slightly improved terminal efficiency. However, underlying issues—including constrained barge capacity, inland rail bottlenecks, and continued labor disruptions—still threaten operational stability.

Carrier alliances have also contributed to shifting dynamics. As networks are reshuffled and some services diverted or consolidated, ports like Rotterdam remain at risk of renewed pressure. Ongoing labor negotiations in Germany and other regions introduce additional uncertainty for port operators and logistics planners.

Shippers are advised to remain vigilant. While European port congestion may be easing now, the industry is heading into the high-volume summer season. As more cargo moves through constrained infrastructure, the potential for delays will increase. Proactive planning, close coordination with logistics providers, and ongoing visibility into inland transport networks will be essential for mitigating risk in the months ahead.

COURT RULING REDEFINES TRADE LANDSCAPE: WHAT IMPORTERS NEED TO KNOW ABOUT IEEPA TARIFFS

UPDATE – May 29, 2025 16:45 EST

Appeals Court Temporarily Reinstates Trump Tariffs

Moments ago, a federal appeals court temporarily reinstated President Donald Trump’s tariffs, which had been invalidated a day earlier by the U.S. Court of International Trade. The lower court ruled that Trump’s tariffs exceeded his authority under the International Emergency Economic Powers Act (IEEPA), following a lawsuit filed by five owner-run businesses. The Trump administration quickly appealed the decision and warned that, without a stay, it would seek emergency relief from the Supreme Court. The appeals court’s brief order places the trade court’s judgment on hold while considering the full motion.

A pivotal legal decision is reshaping U.S. trade policy and creating a window of opportunity for importers. On May 28, the Court of International Trade (CIT) ruled that the Trump administration’s tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful. The court ordered that the executive actions be vacated, directing U.S. Customs and Border Protection (CBP) to stop collecting the affected duties. While the administration has filed an appeal and may seek a stay, this ruling sets the stage for a significant shift in how tariffs can be levied—and what importers should do next.

For now, duties tied to the vacated tariffs may still be collected until a final decision is issued, but importers shouldn’t wait to act. The CIT decision opens the door to potential refunds for duties already paid. However, these refunds will not be automatic. Importers must monitor the liquidation status of affected entries and file formal protests to preserve their rights. Post Summary Corrections remain unavailable for these entries due to system constraints within ACE.

The timeline matters: duties were first collected under these tariffs on February 4, 2025. With liquidation expected around mid-December and a protest deadline extending into June 2026, businesses have time—but not unlimited time—to protect their financial interests.

It’s important to note that this ruling is narrow in scope. It affects only tariffs enacted under IEEPA; other tariffs, such as those under Sections 301, 232, and 122, remain fully intact. As a result, the administration may explore alternate statutory pathways to reinstate similar trade measures.

In the meantime, Future Forwarding advises all importers to closely evaluate their tariff exposure and review their entry data. Staying informed, monitoring liquidation, and preparing to file protests if warranted are critical next steps. If you have questions about how this decision could impact your supply chain or need help assessing your options, our compliance team is here to support you.

Beyond the Headlines: What the Latest Houthi Sanctions Mean for Global Supply Chains

As the Red Sea crisis enters another turbulent chapter, recent announcements by the Houthi militia signal an escalation not just in rhetoric but in perceived threat levels to global trade. For B2B decision-makers, logistics leaders, and risk managers, it’s a critical moment to look beyond the headlines and understand the broader implications for global shipping strategy, supply chain resilience, and geopolitical risk assessment.

From Symbolism to Strategy: Parsing the Houthi “Blacklist”

Over the weekend, the Houthis issued a new list of 15 companies they’ve declared as legitimate targets—including U.S. aerospace giant Boeing—and extended secondary sanctions to any entity transacting with them. While this announcement has attracted global media attention, industry insiders are treating it more as a symbolic maneuver than an operational threat.

Why? Because major shipping lines like Maersk and CMA CGM, reportedly linked to some of these sanctioned companies, are already avoiding Red Sea routes. These diversions are not new. They’ve been part of a broader strategic pivot since late 2023, when risk exposure in the Bab al-Mandab Strait and the Gulf of Aden spiked due to recurring maritime attacks.

In this context, the Houthis’ latest statement may be more about maintaining political relevance than exercising new military capability.

Supply Chain Implications: Operational Disruption or Strategic Noise?

While the practical impact on container flows may be minimal today, the long-term implications of such declarations are far from negligible. Every publicized threat introduces layers of uncertainty that ripple across supply chains—from insurance premiums and carrier route planning to procurement timelines and inventory positioning.

For companies with exposure in sensitive geopolitical corridors, this means that geopolitical intelligence is no longer a “nice to have”—it’s mission-critical. It also underscores the need for adaptive logistics planning and agile partnerships that can respond quickly to evolving risk.

Shifting Tides: A Fragile Suez and the Global Trade Reroute

The conversation surrounding the Red Sea and Suez Canal also intersects with a broader geopolitical recalibration. U.S. leadership has been increasingly vocal about securing passage through key waterways, with former President Trump’s recent social media directive calling for free U.S. passage through both the Panama and Suez Canals.

While this may be more political theater than policy shift, the fact remains: Egypt’s Suez Canal has suffered a 60% drop in revenue and $7 billion in losses year-over-year. Rerouted cargo to longer, more expensive paths around the Cape of Good Hope has downstream effects on freight rates, capacity planning, and emissions targets—particularly for companies aiming to meet strict ESG goals.

Explosion in Iran: A Reminder of Port Vulnerabilities

Saturday’s explosion at Iran’s Shahid Rajaei container terminal is another stark reminder of the fragility of port infrastructure. Whether accidental or deliberate, such incidents highlight the operational and reputational risks ports face in volatile regions. Industrial safety, emergency response readiness, and cyber-physical security must now be core components of any serious logistics or maritime risk management plan.

What Should Logistics and Supply Chain Leaders Do Now?

For businesses reliant on predictable global trade lanes, the call to action is clear:

Reevaluate Routing Strategy: Ensure current shipping routes avoid high-risk zones—even symbolic threats can trigger insurance complications or sudden rerouting.
Build Supplier Agility: Double down on nearshoring, multi-sourcing, and supplier diversity to create fallback plans.
Invest in Intelligence: Subscribe to real-time maritime risk updates and leverage predictive analytics to proactively manage disruption.
Review Force Majeure Clauses: Reassess contracts with logistics providers and carriers to understand exposure and recourse in volatile regions.
Engage in Scenario Planning: Model the impact of Suez or Red Sea closures on inventory lead times, transport budgets, and customer SLAs.

The Global Freight Gameboard Is Shifting—Are You Ready?

While the immediate fallout from the Houthi sanctions may seem limited, the larger narrative is one of increasing unpredictability in the maritime shipping landscape. From political posturing to real security threats, today’s headlines are tomorrow’s bottlenecks—or worse.

For those in the freight, logistics, and supply chain space, staying informed is no longer sufficient. Strategic adaptation, resilient planning, and a proactive mindset are now the new cornerstones of competitive advantage. To learn more, get in touch with us today.

Navigating Changing Trade Regulations: What Importers Need to Know Now

As the global trade environment continues to shift, staying informed and compliant is more important than ever. At Future Forwarding, we are closely monitoring evolving U.S. Customs and Border Protection (CBP) regulations, new tariff implications, and enforcement trends to help our customers navigate the complexities of international shipping, and maintain compliance. Below are several key updates and best practices to help your business stay prepared and protected.

1. Upcoming Tariffs on Annex II Goods

While some goods were previously excluded from reciprocal tariffs under IEEPA (International Emergency Economic Powers Act)—including pharmaceuticals, lumber, and semiconductors—these items are under renewed scrutiny. New tariffs are being discussed, although no formal announcements have been made.

What this means for you:
Stay alert but don’t panic. These changes are developing quickly. We will provide clear, actionable guidance as soon as official information is released.

2. Customs Bond Sufficiency & Tariff Impacts

CBP has started issuing bond insufficiency notices as they account for increased duties under new tariff regimes. Importers may be advised to increase their bond amounts to avoid costly issues like bond saturation or stacking.

Our recommendation:
Proactively review your import projections over the next 12 months. Overestimating bond coverage may result in a higher premium but can help you avoid significant disruptions. Our team is here to assist with these evaluations.

3. Trade Agreement Claims & Documentation

As tariffs increase, programs like USMCA are expected to be claimed more frequently—especially for goods with normally duty-free classifications. However, claiming these benefits without adequate documentation can raise red flags with CBP.

What you should do:
Even if not required at the time of entry, obtain and retain certificates of origin and supporting documents. CBP may request proof of claims at any time, including for items subject to the new IEEPA-related tariffs or aluminum and steel derivatives.

4. Compliance Is Critical: AI & CBP Enforcement

CBP is leveraging artificial intelligence to identify patterns of non-compliance and possible tariff evasion. Brokers are expected to exercise “reasonable care” in supervising imports and ensuring accuracy in all documentation and declarations.

Your action items:
Ensure your records are thorough and accurate. Be ready to substantiate any certifications or claims. We’re committed to advising you responsibly and in writing when concerns arise.

5. Understanding “First Sale” Eligibility

There’s growing interest in using the “first sale” rule to reduce declared values and save on duties. However, this method requires strict qualification to be used appropriately.

Our advice:
If you’re exploring ways to optimize import costs, speak with a qualified trade advisor or attorney. We can connect you with trusted professionals to assess your transaction values and pricing strategies, such as isolating non-dutiable charges like certain commissions or engineering costs.

6. Importer Vetting & Risk Mitigation

CBP is increasingly focused on new Importers of Record (IORs), especially due to a rise in short-lived shell companies used to evade duties. This has led to tighter scrutiny in setting up new accounts.

How Future Forwarding protects you:
We vet all new importers thoroughly and recommend verifying business addresses and operational legitimacy before engagement.

7. The Role of Official Communication

We want to emphasize that social media posts are not law. No matter how widely circulated, guidance only becomes official through Executive Orders and, more importantly, CBP’s Cargo Systems Messaging Service (CSMS).

What this means for you:
Rely on Future Forwarding and CBP’s CSMS alerts—not online chatter—for accurate, enforceable guidance. We will always inform you of updates as soon as they are confirmed by official channels.

Partnering With You Through Change

We understand this is a challenging time for importers, and you may have questions as policies shift. Our team is dedicated to working closely with you, asking the right questions, and providing thoughtful recommendations to ensure continued compliance and peace of mind.

For more personalized support or if you’d like to discuss how these updates may affect your operations, please don’t hesitate to reach out. We’re here to help.

CBP Issues Guidance on Reciprocal Tariffs

On April 2, 2025, a new Executive Order titled “Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits” was issued. In response, U.S. Customs and Border Protection (CBP) has provided official guidance for actions effective as of April 5, 2025. Importers must act quickly to ensure compliance with the new requirements.

Key Highlights of the Reciprocal Tariff Guidance

New Tariff Classification Requirement

Beginning April 5, 2025, all imports must include a secondary Harmonized Tariff Schedule of the United States (HTSUS) Chapter 99 classification. This applies whether the product is subject to the reciprocal tariff or qualifies for an exemption. This additional classification ensures CBP can track and apply the new duty structure properly.

Core Duty Rate: HTSUS 9903.01.25

The baseline reciprocal tariff imposes a 10 percent additional ad valorem duty on most imported goods. This applies to all items entered for consumption or withdrawn from the warehouse for consumption on or after 1201 a.m. EDT, April 5, 2025.

This 10 percent duty is in addition to all other applicable duties, taxes, and fees.

Exceptions to the Tariff

There are several key exceptions. If the tariff under 9903.01.25 does not apply, importers must declare an alternative HTSUS code to indicate the exemption. These include:

9903.01.26 for articles originating in Canada
9903.01.27 for articles originating in Mexico
9903.01.28 for goods already in transit before April 5, 2025 (valid only through May 26, 2025)
9903.01.29 for products from Column 2 countries such as Belarus, Cuba, North Korea, and Russia
9903.01.30 for humanitarian donations
9903.01.31 for informational materials
9903.01.32 for products specifically identified in Annex II
9903.01.33 for certain iron, steel, aluminum, and automotive articles under Section 232
9903.01.34 for goods with at least 20 percent U.S. content (duty applies only to non-U.S. portion)

Need Help?

Reach out to your Future Forwarding representative or traderemedy@cbp.dhs.gov.

The Impact of Reciprocal Tariffs on Foreign-Trade Zones

As reciprocal tariffs are set to take effect on or around April 2, 2025, businesses relying on Foreign-Trade Zones (FTZs) must prepare for potential disruptions and compliance challenges. The application of these tariffs, targeted at trading partners imposing substantial trade barriers to U.S. goods, will have far-reaching implications for businesses involved in manufacturing, distribution, and logistics.

What Are Reciprocal Tariffs?

Reciprocal tariffs are a trade remedy mechanism intended to balance the playing field by imposing tariffs on imported goods from countries that have levied significant trade barriers against U.S. goods. Starting on April 2, 2025, certain trading partners will face blanket tariff rates on all imported goods originating from their countries, potentially impacting the cost structures and operations of U.S.-based businesses, including those operating within FTZs.

The Uncertainty Surrounding FTZ Admission Requirements

One of the primary questions surrounding the introduction of reciprocal tariffs is whether merchandise originating from countries subject to the new tariffs will be required to enter FTZs under “Privileged Foreign” (PF) status. This status restricts certain merchandise, which could result in changes to how businesses manage inventory and imported goods.

The Potential Effects on Manufacturers

If FTZ merchandise from reciprocal tariff countries is required to be admitted under PF status, the effective date of the tariffs will lock in the tariff rates at the time of admission. For manufacturers who rely on parts, components, or raw materials from these countries, the elimination of benefits like the inverted Most-Favored-Nation (MFN) duty rate could result in increased costs. This means that manufacturers might face higher duties when withdrawing goods from the FTZ for U.S. consumption, including any additional trade remedy tariffs in place.

On the other hand, if PF status admission is not required, manufacturers could face two distinct risks:

Risk of Overpayment: Goods made from parts or components that don’t enter under PF status might end up being subject to reciprocal tariffs on the total value of the finished goods when they are withdrawn.
Risk of Inconsistent Application: If the PF status rule is not applied, manufacturers may inadvertently avoid tariffs on certain materials, creating compliance risks and complications when reporting and calculating duties.

At this stage, it’s unclear which route will be taken, and businesses must stay alert to official guidance as new policies unfold. This uncertainty underscores the need for proactive monitoring of developments and a readiness to adapt operational processes quickly.

Managing On-Hand FTZ Inventory

Another critical area of concern for FTZ operators and businesses utilizing FTZ services is how on-hand inventory will be affected by the reciprocal tariffs. Specifically, businesses will need to determine whether goods admitted before the tariff’s effective date can still avoid the new tariff rates when they are withdrawn from the FTZ after April 2, 2025.

Just as with other trade remedy actions (e.g., Section 301 or Section 232 tariffs), past inventory might be grandfathered in under the previous tariff structures. However, there is still a possibility that the new tariffs will apply retroactively, similar to the treatment of steel under Section 232 tariffs. This potential change could require businesses to reassess their inventory strategy and consider actions like filing Zone Status Change admissions or paying duties on inventory before the tariff implementation date.

The Role of FTZ Operators

FTZ operators, especially third-party logistics (3PL) providers, will have a significant role to play in helping businesses navigate these changes. While the ultimate responsibility for tariff compliance typically rests with the business using the FTZ, operators should be ready to assist with tasks such as filing customs entries, helping with inventory adjustments, and ensuring that the correct tariff classifications are applied.

3PL providers may also need to review their contracts with FTZ customers to clarify roles and responsibilities when it comes to compliance with new tariffs. Ensuring that customers are aware of their obligations and deadlines will be crucial to maintaining smooth operations in the face of regulatory shifts.

Increased CBP/ICE Enforcement and Compliance

In addition to the changes related to tariffs, businesses should also be aware of increased enforcement activities by U.S. Customs and Border Protection (CBP) and Immigration and Customs Enforcement (ICE). Recent inspections at bonded warehouses have led to heightened scrutiny, and FTZ operators are being reminded of their responsibilities to ensure employment eligibility verification for all personnel working within CBP-supervised facilities. Ensuring compliance with these regulations will be critical to avoiding potential penalties.

Preparing for the Future

In light of the uncertainty surrounding the implementation of reciprocal tariffs, FTZ operators and businesses should:

Monitor Regulatory Changes: Stay informed on updates regarding the application of reciprocal tariffs to understand whether PF status will be required for merchandise from impacted countries.
Review FTZ Inventory: Consider filing necessary Zone Status Change admissions to align with potential new tariff classifications before the effective date.
Prepare for Compliance: Ensure that all required customs transactions are in place to mitigate potential disruptions to business operations.
Collaborate with FTZ Operators: Engage FTZ operators early to clarify roles and responsibilities under the new tariff structures.

By taking these proactive steps, businesses can minimize the impact of reciprocal tariffs and continue to operate efficiently within FTZs, maintaining compliance and avoiding costly errors. Have questions? Reach out to your Future Forwarding representative for further guidance.

Notice: Tariff Surcharge

As you may know, recently announced tariffs on various goods imported into the United States from China and Canada, and all imports of iron and steel, have now gone into effect, and more rounds of tariffs are forthcoming this week and possibly again in April. US Customs & Border Protection (CBP) manages these additional tariffs by assigning an additional HTS for each 301, 232 or IEEPA Tariff, plus an additional HTS for any applicable exclusions or quotas. Some items often require up to 5 unique HTS.

Effective immediately, the following surcharge will be effective for all imports to the United States cleared by Future Forwarding Company.

Tariff Surcharge: $3.00 per HTS after 5 HTS free per entry.

Note that this surcharge is in addition to existing entry fees, ISF, and any other handling fees.

As always, we will continue to evaluate our position as this dynamic situation continues to evolve and keep you informed of any changes. We are also committed to continuing to explore strategies to minimize the impact for your organization.

We thank you for choosing to do business with Future Forwarding Company and we value your partnership and continued support.

Implementation of Section 232 Tariffs on Steel and Aluminum Derivative Articles

As of March 11, 2025, the U.S. government has enforced Section 232 tariffs on certain derivative articles of steel and aluminum, expanding the scope of duties beyond primary metal imports. These measures aim to protect national security interests by mitigating circumvention risks associated with modified steel and aluminum products.

Understanding Derivative Articles and Their Impact

Derivative articles refer to goods that incorporate steel or aluminum as a primary component and have undergone limited processing or modification to evade direct tariff application. Common examples include:

Steel nails, tacks, and fasteners
Aluminum stranded wire, cables, and conductors
Certain types of tubing, piping, and mechanical components

The extension of tariffs to these products ensures that manufacturers and importers cannot sidestep Section 232 duties by making minor modifications to raw materials.

Compliance Challenges for Importers

The expansion of Section 232 tariffs presents challenges for importers, particularly in properly declaring derivative value for customs entry. Many derivative articles involve multi-component goods, where steel and aluminum may account for only a portion of the overall product value.

Customs valuation for these products must align with reasonable allocation of dutiable value while ensuring compliance with CBP regulations. Failure to declare accurate values may result in penalties, audits, or import delays.

Reconciliation Entry as a Temporary Reporting Mechanism

To address the complexity of derivative value reporting, importers may consider using reconciliation entry as a temporary solution. The CBP Reconciliation Program allows importers to file estimated values at the time of entry and later submit a final value adjustment. This approach provides:

Flexibility in determining the steel/aluminum proportion of a derivative article
Compliance assurance while adjusting declared values post-import
Reduced risk of penalties due to inadvertent undervaluation

Steps for Importers to Implement Reconciliation

Flag Entries for Reconciliation – When filing an entry, importers should flag it for value reconciliation in ACE (Automated Commercial Environment).
Estimate Dutiable Value – Report a preliminary steel/aluminum content value, subject to later verification.
Monitor Adjustments – Gather supporting data post-import to determine accurate derivative value.
File the Reconciliation Entry – Submit the final reconciled value within the allowed CBP timeframe to adjust Section 232 tariff obligations accordingly.

Looking Ahead

With the Section 232 tariff enforcement on derivative articles now in effect, importers should ensure proper classification of derivative articles, assess their supply chains, and utilize reconciliation entry as a strategic compliance tool.

Future regulatory developments may further refine the valuation process, but in the interim, proactive planning will help mitigate risk and ensure uninterrupted trade operations.

For more guidance on Section 232 tariff compliance and reconciliation strategies, reach out to Future Forwarding today.

USTR Seeks Public Input on Trade Measures Against China’s Maritime Dominance

The Office of the United States Trade Representative (USTR) is requesting public comments on proposed trade actions in response to China’s growing control over the global maritime, logistics, and shipbuilding industries. Following a Section 301 investigation, USTR determined that China’s policies have disadvantaged U.S. businesses and workers, prompting potential countermeasures.

Background of the Investigation

The investigation began in April 2024 after several U.S. labor unions filed a petition citing China’s long-standing efforts to dominate the shipbuilding and logistics sectors. Over the past three decades, China has significantly expanded its control, increasing its global shipbuilding market share from under 5% in 1999 to over 50% in 2023. Additionally, China now produces 95% of the world’s shipping containers and 86% of intermodal chassis, strengthening its influence over global trade logistics.

According to the USTR’s findings, China’s industrial policies have created unfair competitive conditions by displacing foreign businesses, limiting commercial opportunities, and posing economic security risks. As a result, USTR has determined that action is necessary under Section 301 of the Trade Act of 1974.

Proposed Trade Actions

To address China’s competitive advantage, the USTR is considering several measures:

Service Fees on Chinese Shipping Operators – A fee of up to $1,000,000 per vessel entry into U.S. ports for operators with Chinese-built vessels.
Tariffs on Operators Using Chinese-Built Ships – Additional fees for companies that operate or have pending orders for Chinese-manufactured vessels.
Incentives for U.S.-Built Vessels – A system of fee reimbursements for operators using U.S.-manufactured ships.
Shipping Restrictions on U.S. Exports – A phased-in requirement that a portion of U.S. goods be transported on U.S.-flagged and U.S.-built vessels.
Security Measures Against Chinese Logistics Platforms – Possible restrictions on the use of LOGINK, a Chinese-developed logistics data platform, due to security concerns.

Public Comment Period and Hearing Details

The USTR is encouraging stakeholders to provide feedback on these proposed actions. The key deadlines are as follows:

February 21, 2025 – Public comment period opens.
March 10, 2025 – Deadline to request participation in the public hearing.
March 24, 2025 – Deadline to submit written comments.
March 24, 2025 – Public hearing at the U.S. International Trade Commission in Washington, D.C.
Seven days after the hearing – Deadline for post-hearing rebuttal comments.

Comments and requests to participate in the hearing can be submitted via USTR’s online portal at https://comments.ustr.gov/s/ using docket numbers USTR–2025–0002 (for written comments) and USTR–2025–0003(for hearing requests).

APHIS Dashboard for WPM Compliance