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Section 301 tariffs set to be permanent feature of US trade policy

US importers should prepare for a prolonged era of Section 301 tariffs, stricter customs enforcement, and fewer opportunities to reduce penalties, according to trade consultancy CargoTrans. During a recent webinar, the company said Section 301 had evolved far beyond its original use against China, becoming the administration's preferred legal mechanism for imposing tariffs on a growing range of imports. The latest measures include 25% on selected goods from Brazil, while further tariffs affecting China, the EU, Vietnam, India, and Mexico remain under consideration. CargoTrans said businesses should no longer think of Section 301 as a single-tariff programme. "301 is a broad-based platform. We can't stop 301 because this is not 'China 301', it is a platform they are using to implement additional tariffs for many different reasons. So you are going to see a variation of 301s from here on," said licensed customs broker and trade advisor Rennie Alston. He also argued that the legal authority effectively allowed the administration to impose tariffs across a range of policy objectives, adding that while the underlying subject matter may differ, "the strength behind the 'just because' is the authorisation to tax." The expansion of Section 301 comes despite legal challenges from 25 US states, which have questioned the administration's use of the tariffs. However, co-CEO of CargoTrans Nunzio DeFilippis believes those cases face "a lot bigger hill to climb" in challenging the administration. "Recalculate landing costs," he advised. "Don't treat Flip 301 as another temporary tariff. Yes, it's being challenged, but this 301s are generally much more stickier than others in the past." Alongside the new tariff regime, CargoTrans warned that the Customs and Border Protection (CBP) agency was entering a far more aggressive enforcement phase. "The customs position is that enforcement escalation is here to generate revenue," said Mr Alston. According to him, the long-standing practice of reducing customs penalties by as much as 90% is disappearing. Instead, mitigation is now limited, with reductions of up to 50% available only to trusted traders and companies able to demonstrate written controls and robust compliance systems. CargoTrans also warned that CBP had adopted a "zero tolerance" approach. "Customs have said 'no more warnings'," Mr Alston urged, adding that enforcement was increasingly focused on recovering duties and penalties. The company urged importers to strengthen governance around tariff classification, customs valuation, and country-of-origin declarations, warning that errors in any of the three could expose businesses to allegations of tariff evasion. "Compliance is not a luxury, right? It is a requirement of demonstration," Mr Alston underscored.. "No longer is it a best practice to have a compliance manual and the appearance of compliance. Appearance is nowhere in these enforcement escalations." Beyond compliance, the speakers urged procurement teams to revisit supplier contracts, clearly allocating responsibility for future tariff increases and considering exit clauses covering actions by the US government. They also recommended that companies reassess sourcing decisions based on total landed cost rather than manufacturing price alone, taking into account transit times, supplier reliability, inventory costs, and tariff exposure. Looking ahead, CargoTrans warned, expect further Section 301 investigations before the end of the summer. "I think we're going to see more," concluded Mr Alston, adding: "I think tariffs are here to stay, in one form or another."

Chinese EV boom fuels demand and charter rates for car-carriers

Charter rates for modern car-carriers are moving towards the $100,000 a day mark again - powered by rising demand for Chinese electric vehicle exports. While VesselsValue shows average charter rates for car-carriers at around $67,000 a day, new vessels can command a higher rate. Last week, Atlas EMF, a joint-venture between Greek shipowner Atlas Maritime and European Maritime Finance, chartered the 7,000 ceu Clean Star to an unnamed Chinese operator for two years, for $80,000 a day, prior to its expected delivery from CIMC Raffles shipyard this month. Atlas CEO Leon Patitsas said: "This agreement reflects the exceptional quality of the vessel, the continued confidence of leading operators in our fleet, and the strong fundamentals of the global vehicle carrier market." In March, another of Atlas EMF's new car=carriers, the 7,000 ceu Eco Star, was fixed to Wallenius Wilhelmsen for a year, at $53,000 a day, shortly after delivery. The spike in charter rates within five months highlights how demand is strengthening for modern vehicle carriers. SAIC Anji Logistics, the shipping arm of SAIC Motor, recently chartered Eastern Pacific Shipping's newly built 7,060 ceu car carrier Lake Rotorua for $90,000 a day, shortly after delivery by China Merchants Jinling Shipyard, Nanjing. Car-carrier charter rates hit $100,000 a day in August 2022, before 'normalising' in late 2024, as record numbers of newbuildings were delivered. Now, China's vehicle exports are on a bull run, fuelling demand for ships to carry them. China Association of Automobile Manufacturers' statistics show nearly 5.1m vehicles exported during the first six months - up 65.3% year on year. New energy vehicle exports exceeded 2.3m units, more than double last year. In June, vehicle exports reached 1.037m, up 75% from a year ago, marking the first time China's monthly automobile exports exceeded a million units. With tonnage tight, even older car-carriers can command a decent charter rate. Two, belonging to SFL, the 6,500 ceu SFL Composer and SFL Conductor, built in 2005 and 2006 respectively, were fixed to Cosco at around $40,000 a day for 34 months. And the demand for tonnage is reviving newbuilding orders for car-carriers, after only nine were commissioned last year. So far in 2026, at least 40 have been ordered. MSC's car-carrier arm, Global Car Carriers, has commissioned ten LNG dual-fuelled car-carriers, comprising six at 8,600 ceu and four of 7,000 ceu, for delivery 2028-2030. The larger ships will be built by China Merchants Heavy Industry Yizheng, the others will be equally split between CMHI Weihai and Guangzhou Shipyard International The rising market has also attracted an opportunistic newcomer, China-based Zhongnan Shipping, which has ordered four 5,700 ceu car-carriers at Jiangsu Runyang Shipbuilding, for delivery between 2028 and 2029.

SolitAir adds Bucharest to European network

Bucharest Henri Coandă International Airport (Otopeni) in Romania has become the latest destination UAE cargo airline SolitAir has added to its network. The Dubai-based airline confirmed Otopeni had become its second destination in Europe in a recent LinkedIn post. "The addition of Otopeni enhances our ability to support growing trade flows between the Global South and Europe, providing businesses with reliable air cargo connectivity through our hub at Dubai World Central (DWC)," said SolitAir. Romania is one of southeast Europe's key economic centres and plays an increasingly important role in regional trade, supported by strong automotive, manufacturing, technology, and industrial sectors, added the airline. Last month, SolitAir launched its first route into the European Union with its inaugural flight to Sofia, Bulgaria. SolitAir's flights from its hub at Dubai World Central to Vasil Levski Sofia Airport were made possible by its ACC3 (Air Cargo or Mail Carrier operating into the Union from a Third Country Airport) designation, granted by the Belgian Civil Aviation Authority in March. The airline was also granted a UK Third Country Operator Certificate from the UK Civil Aviation Authority in July. SolitAir first obtained an Air Operator Certificate (AOC) from the United Arab Emirates' (UAE) General Civil Aviation Authority in March last year. Since its operational launch in October 2024, the airline has grown to 56 routes across more than 34 countries, including a 17-city network across Africa, anchored by a hub in Nairobi. SolitAir operates a fleet of seven 737-800 Boeing converted freighters, each with 20-tonne cargo capacity and able to carry dangerous goods, pharmaceuticals, perishables, valuable and oversized freight. The airline is targeting fleet growth to 20 aircraft operating from its 20,440 sq m cargo hub at Dubai World Central.