Every week, Rinchem shares important articles and topics about chemical and gas logistics. They also cover other factors that affect the global supply chain.
U.S. Tariff Hikes & European Dockworker Strikes Disrupt Shipping
Global supply chains are currently facing significant disruptions due to recent U.S. tariff increases and labor strikes at European ports.
U.S. Imposes New Tariffs
On February 18, 2025, President Donald Trump announced a 25% tariff on imports of automobiles, semiconductors, and pharmaceuticals. This policy is expected to disrupt supply chains in these sectors and may lead to retaliatory measures from trade partners such as China, the European Union, and Mexico. Logistics service providers, freight forwarders, and original equipment manufacturers are likely to experience increased operational costs as a result.
European Port Strikes Escalate
Simultaneously, labor actions in Europe are contributing to shipping delays:
-
France: Dockworkers and port staff are planning strikes at the Port of Saint-Nazaire, Montoir, and Nantes over pension reforms. A 24-hour strike is scheduled for February 21-22, followed by a 48-hour strike on February 26-27, with potential port blockades on February 27. These actions are expected to cause severe delays in cargo flow through France's west coast ports and may lead to congestion at other major ports like Antwerp, Hamburg, and Le Havre.
-
Netherlands: On February 17, 2025, the Dutch dockworkers' union at Hutchison Ports Delta II in the Port of Rotterdam called for a boycott of rerouted vessels by European port workers, stemming from an ongoing labor dispute. This boycott could exacerbate congestion and disrupt containerized imports and exports across Northern European gateways.
Implications for Logistics and Supply Chains
These concurrent events are poised to increase logistics costs, particularly in the automotive, semiconductor, and pharmaceutical industries. Companies are advised to monitor the situation closely and consider alternative routing options, such as through Antwerp, Bremerhaven, and Hamburg, to mitigate potential disruptions.
9 Regulations Reshaping Global Logistics: Here’s How to Decode Them
The global logistics landscape is being reshaped by several key regulations aimed at enhancing environmental sustainability, human rights, and supply chain transparency. Understanding these regulations is crucial for companies engaged in international trade.
Here are a few of the 9 listed. Visit the article to read more.
1. Carbon Border Adjustment Mechanism (CBAM)
The European Union's CBAM requires importers of carbon-intensive products, such as aluminum, to report the embedded carbon emissions in their goods. Starting January 1, 2025, only the EU's reporting method will be accepted, and estimates can be used for complex goods only if they account for less than 20% of total embedded emissions. This necessitates detailed tracking of emissions, especially for products with complex supply chains.
2. Corporate Sustainability Due Diligence Directive (CSDDD)
The EU's CSDDD mandates that companies identify and address adverse human rights and environmental impacts within their operations, subsidiaries, and, in some cases, business partners. EU member states have until July 26, 2026, to incorporate this directive into national laws. It will initially apply to EU companies with over 5,000 employees and global revenue exceeding €1.5 billion, as well as non-EU companies with EU-generated revenues above this threshold.
3. Regulation on Deforestation-Free Products (EUDR)
Effective by the end of 2025 for large companies, the EU's EUDR focuses on commodities linked to deforestation, such as cocoa and coffee. Companies must verify the origin of these products to ensure they did not contribute to deforestation. This requires comprehensive knowledge of the supply chain, down to the source of raw materials.
These regulations, among others, reflect a global trend toward stricter oversight of supply chains concerning environmental impact and human rights. Companies involved in international trade should proactively assess their supply chains to ensure compliance and adapt to the evolving regulatory environment.
New era of semiconductor manufacturing clashes with dated immigration laws
The resurgence of semiconductor manufacturing in the United States, bolstered by the CHIPS and Science Act, aims to create approximately 42,000 new permanent positions in the industry. However, the sector faces a significant workforce shortage, particularly in specialized roles. Current U.S. immigration policies, especially the H-1B visa program, are ill-equipped to address this gap. The annual cap of 85,000 new H-1B visas is insufficient, with approval rates for applicants dropping below 20% in the 2025 fiscal year.
Get more articles like this in your inbox
Sign up for our monthly newsletter
Find more articles
Request a Quote
