President Trump’s Tariff Increase Could Duplicate 2018 Frontloading Surge

The index reveals that per the recent incoming Trump Administration announcements, there will also be a 25% increase in tariffs for Canada and Mexico, which are expected to occur as soon as Feb. 1.

Humeyra Adobe Stock 919683953
Humeyra AdobeStock_919683953

Overall, operations throughout North American ports and ramps are running relatively smoothly and are expected to remain so through the month, with the exception of the Port of Vancouver, Canada, according to the ITS Logistics US Port/Rail Ramp Freight Index.

“Vancouver is still clearing a 3-week backlog of containers that are awaiting rail transit,” said Paul Brashier, Vice President of Global Supply Chain for ITS Logistics. “The Lunar New Year rush, a November port strike that has now come to an end, and lack of rail equipment are contributing to the Vancouver terminal challenges. US West Coast port and rail ramp operations will remain at an elevated status, and there are still concerns that there may be an increase in transpacific inventory front-loading throughout the month. This is in addition to Western Canada port and rail issues.”

 

Key takeaways:

  • The index reveals that per the recent incoming Trump Administration announcements, there will also be a 25% increase in tariffs for Canada and Mexico, which are expected to occur as soon as Feb. 1.
  • According to operators, the Port of Vancouver is on course to clear congestion by next month, but this plan could change because of the swift action from the newly appointed Trump Administration to enforce tariffs.
  • The Global Port Tracker reported an increase in volumes this fall, confirming that November’s container imports increased by 14.7% over a year earlier while being slightly down from October (3%).

“Shippers should prepare for the potential of a front-loading event similar to 2018, impacting transpacific trade lanes from Asia into North America—regardless of origin—as front-loading bottlenecks at the same entry point ports,” says Brashier. “Industry professionals should also expect exports to be negatively impacted as well due to equipment imbalance and these possible retaliatory tariffs.”

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