US DoT

U.S. Shutdown Strains Supply Chains as Key Agencies Go Offline

Oct 14, 2025 | , ,

As it enters its 3rd week the U.S. government shutdown is squeezing every part of the country’s trade and logistics ecosystem, with air traffic control, ports and customs all under strain. While some critical functions persist, the uncertainty is already slowing imports, exports and regulatory oversight, with shippers scrambling for workarounds.

When Congress failed to pass funding for the new fiscal year, roughly 900,000 federal employees were furloughed, while another 700,000 remained working without pay under “essential services” status. Agencies handling cargo inspections, agricultural exports, customs clearances, and aviation safety have been forced to scale back or suspend operations.

Among the hardest hit is the Federal Aviation Administration (FAA). Though flights continue, staffing gaps at control towers have led to lengthier delays and, in some cases, temporary closures.  Air traffic controllers are being asked to continue working without pay, a situation already fuelling increased absences that further jeopardise flow.

Across U.S. seaports, cargo movement remains technically active, but growing friction is emerging. While U.S. Customs and Border Protection (CBP) has stated that it will continue tariff collections and core port entry functions, other agricultural certifications, regulatory and partner-agency bottlenecks may slow processing.

Those ports that are reliant on external agencies for sanitary inspections, agricultural checks, environmental clearances or supplementary certifications may see the greatest delays.

USTR has classified trade negotiation support, tariff administration and enforcement of trade agreements as national security relevant trade actions which are essential and continues to operate in that capacity.

Key Risks

  • Regulatory and clearance bottlenecks. With agencies operating at reduced capacity, goods may stall at ports, borders, or customs checkpoints until funding resumes.
  • Air-cargo delays intensify. Disruptions in air traffic control could cascade into longer handling times and rerouting risks for time-sensitive freight.
  • Critical staffing stress. Essential personnel working unpaid risk exhaustion and attrition, which is precarious.
  • Economic spillover. Delays ripple into production, inventory, and consumer markets, especially where just-in-time systems dominate.
  • Shutdown resolution timeline. The longer the impasse endures, the sharper the pressure on Congress to return vital infrastructure back to full operation.

Our North American offices, customs brokerage network, and local support teams are closely coordinating with CBP and partner agencies to maintain cargo flow and eradicate clearance delays.

EMAIL Andrew Smith, Managing Director, today to discover how we can protect your success in the U.S.

Seattle

Carriers Pull Sailings and Add GRIs as US Port Fees Add New Cost Layer

Oct 14, 2025 | , , , , , , , , , , , , , , ,

Container lines are tightening capacity to defend freight rates just as new U.S. port fees on China vessels start on 14 October—costs that carriers say will be passed through to shippers.

In the run-up to contracting season, the shipping alliances have stepped up blank sailings to support pricing. Between weeks 42–46, carriers withdrew 41 of 716 planned east–west sailings with the heaviest cuts on the transpacific and Asia–Europe corridors. It means that 6% of capacity, or 544,000 TEU have been stripped from transpacific and Asia–Europe trade-lanes over the past four weeks. 

Spot rates remain soft, with Drewry’s composite World Container Index dipping 1% in week 41, as carriers signal fresh GRIs of up to $2,300/teu and congestion/peak surcharges as they curb supply with voids and slow steaming.

USTR port fees are active

From 14 October, the United States is imposing USTR “special port service fees” on China-linked tonnage, with payment required in advance of arrival to avoid being denied lading, unlading or clearance.

For Chinese-owned/operated vessels, the fee starts at $50 per net ton, stepping up annually to 2028. For Chinese-built ships (not China-operated), the fee is the higher of $18 per net ton or $120 per discharged container, while foreign-built vehicle carriers face $46 per net ton from today.

What it means for shippers

  • The USTR regime adds a new fixed cost per container on top of base ocean rates and surcharges, and carriers are preparing pass-throughs.
  • With 6% of departures already pulled on main east–west trades and more voids likely, load factors are rising on the sailings that remain, which will add upward price pressure.
  • U.S. rules emphasise USTR pre-payment and proof on arrival, with non-compliance risks of port denial, cascading delays to inland supply chains and additional cost.

The container shipping lines are using their capacity and surcharge levers to prop up rates, while the USTR/China port fees, effective from last Tuesday, inject a non-market cost that will filter through to shippers. Expect more targeted blanks, GRIs with short notice, and more surcharges on Asia–Europe and transpacific flows into November.

At Metro, we work hand-in-hand with our network and carrier partners to keep cargo moving, even when the market is disrupted.

From time-sensitive shipments to sudden blankings, our sea freight team secure the right space to safeguard your supply chains and shield you from GRIs.

EMAIL Andrew Smith, Managing Director, today to explore how we can protect your US supply chains and insulate you from threatened GRIs.

Typhoon HKG 1440x1080 1

Blank Sailings, GRIs and a Typhoon Disrupt Asia Shipping

Sep 30, 2025 | , , , , , , , , , , ,

Shippers moving goods out of Asia are bracing for the tightest space and schedule disruptions as the major container shipping lines accelerate blank sailings in the lead-up to China’s extended Golden Week holidays.

Following weeks of tentative planning, lines have now confirmed broad capacity withdrawals, cancelling between 14–17% of sailings on core Asia–Europe and Asia–US routes to offset softer demand amid seasonal and weather challenges.

The unprecedented combination of Golden Week and the Mid-Autumn Festival has pushed factory shutdowns to an eight-day stretch this year, pausing exports at the world’s manufacturing hub.

Just days before the holiday, Super Typhoon Ragasa hammered South China, triggering port closures, flight cancellations, and severe equipment shortages. Local experts now expect cargo backlogs and shipping delays to stack up for at least a week beyond the holiday’s official end, intensifying the regional congestion and supply chain volatility.

Carrier Alliances Adjust Rapidly

Analysis of carrier announcements reveals distinct strategies among the largest ocean alliances. Early movers blanked sailings soon after market signals softened, while others opted for aggressive, late-stage cuts in the final pre-holiday weeks. Whether by steady withdrawals or front-loaded cancellations, overall capacity reductions are now on par with historical Golden Week patterns, yet the scale and timing of adjustments this year dwarf previous years and reflect the urgent need for carriers to rebalance supply with dampened demand.

In parallel with capacity cuts, carriers are moving to restore profitability through new general rate increases (GRIs). One major line has announced GRIs effective from early October:

  • Far East–North Europe: $1,200 per 20ft and $2,000 per 40ft.
  • Far East–West Mediterranean: $1,750 per 20ft and $2,500 per 40ft.
  • Far East–East Mediterranean: $1,800–$2,150 per 20ft and $2,600–$2,700 per 40ft, depending on destination.

Meanwhile, another leading carrier has confirmed a peak season surcharge on the westbound transatlantic, at $400 per 20ft and $600 per 40ft.

These surcharges highlight how quickly pricing can swing when capacity is withheld and seasonal demand shifts.

Adding to the disruption, last week’s Typhoon Ragasa forced widespread factory closures and halted container movements across South China. Surges in trucking and equipment charges at origin have been exacerbated by the post-typhoon scramble.

Why Carriers Blank Sailings

Blank sailings, a carrier’s decision to skip or cancel specific port calls, or even entire voyages, are a crucial tool for controlling costs and freight market stability. These cancellations can occur due to falling demand, port congestion, storms, mechanical breakdowns, or as part of a calculated strategy to support freight rates in an oversupplied market.

Blank sailings happen for several reasons:

  • Low demand – such as after Chinese New Year or Golden Week.
  • Port congestion – strikes, bottlenecks, or canal delays.
  • Weather disruptions – storms or unsafe docking conditions.
  • Mechanical issues – urgent vessel repairs.
  • Market strategy – cutting supply to stabilise freight rates.
  • Regulatory or political disruption – new rules or regional instability.

The Shipper’s Challenge

Blank sailings mean longer lead times, unpredictable offloads, and more frequent cargo rollovers. Freight may get rerouted, remain at origin for extended periods, or be consolidated on later vessels, driving both and planning complexity up.

To keep shipments moving and mitigate delays, shippers should:

  • Build more time buffers into supply chain schedules during holiday and storm periods.
  • Use tracking and analytics tools for early indications of disruption.
  • Diversify carriers, prioritising reliability and fast rerouting capabilities.
  • Communicate proactively about possible delivery delays.
  • Explore alternative transport modes for urgent consignments.

With volumes likely to stay subdued until the seasonal year-end surge, further blank sailings could be triggered in response to lingering congestion and uneven recovery.

The weeks ahead demand vigilance, agility, and close collaboration.

At Metro, we work hand-in-hand with our network and carrier partners across China to keep your cargo moving, even when the market is disrupted. From time-sensitive shipments to sudden blankings, our sea freight team finds the capacity and alternative solutions you need.

By sharing forecasts on critical dates and volumes, you’ll help us secure the right space to safeguard your supply chains and shield you from looming GRIs.

EMAIL Andrew Smith, Managing Director, today to explore how we can protect your ex-Asia supply chains and insulate you from threatened GRIs.

US court 1440x1080 1

US Targets Tariff Evasion

Sep 30, 2025 | , , , , , , , , , , , , ,

The White House has launched a revitalised Trade Fraud Task Force to clamp down on tariff evasion and customs violations. This coordinated cross-agency initiative is set to bring sharper enforcement tools and greater scrutiny to a trading environment already complicated by regulatory uncertainty and shifting tariffs.

The new Task Force brings together agents and specialists from Customs and Border Protection (CBP), DOJ, and Immigration and Customs Enforcement (ICE), with the explicit aim to aggressively pursue importers and affiliates who attempt to evade tariffs, duties, and import restrictions.

Exporters, as well as importers, should note that enforcement now targets not only mis-declaration of country of origin and tariff classification but also complex global fulfilment models and transhipment tactics commonly used to optimise duty payments.

Recent enforcement cases have involved importers penalised for inaccurately reporting the origin of goods or misrepresenting tariff categories, with multimillion-dollar fines levied under the False Claims Act.

As these measures ramp up, UK exporters must be prepared to demonstrate robust compliance processes, maintain meticulous records, and ensure transparency in customs documentation.

Civil and Criminal Measures

The launch builds on recent DOJ activity, where multiple settlements involving trade fraud have been reached since President Trump returned to office.

Recent cases include both failure to declare correct country of origin and deliberate misrepresentation of goods, with penalties reaching into the millions. The False Claims Act, traditionally used for government contractor and healthcare fraud, is now increasingly deployed to investigate and penalise customs violations, expanding the law’s scope within the trade sector.

A major element of this strategy is the expansion of whistleblower programmes, rewarding those who provide actionable leads on tariff, customs, and trade fraud. The DOJ has made clear that it intends to continue scaling these enforcement efforts and leverage whistleblower-driven intelligence to bolster the detection and prosecution of evasion schemes.

Uncertainty for Importers

Importers face growing compliance pressure as a direct consequence of these changes. The rapid rollout of enforcement comes as legal battles rage over tariff legitimacy and definitions, compounded by lingering ambiguity on what constitutes transshipment or qualifying country-of-origin. Shifting tariff rates by trading partner and category further complicates import cost management and supply chain transparency.

Companies manufacturing overseas, utilising complex fulfilment or multi-country storage, and those unfamiliar with recent regulatory changes risk exposure to sanctions and penalties.

With Customs and Border Protection continuing to flag difficulties in identifying and assessing duty on goods moved through indirect or deceptive routes, the new Task Force signals a more determined and well-resourced effort to close these enforcement gaps.

Takeaways for Global Traders

For businesses engaged in cross-border trade with the US, renewed vigilance is now essential. Meticulous record-keeping, robust compliance audits, and transparent reporting are key steps to minimise risk under the heightened enforcement regime.

As the Task Force expands its remit to cover a broad array of customs and tariff breaches, organisations must prepare to meet more demanding legal standards and guard against evolving investigation tactics.

In this fast-changing regulatory climate, proactive compliance and expert guidance offer the best defence, and securing a competitive foothold in US markets means staying one step ahead of enforcement trends.

For Metro clients, this trend creates new challenges in export planning and risk management. Those sending goods to the US must ensure their paperwork, origin declarations, and valuation methods strictly align with current customs codes.

Metro’s sector experience enables British exporters and US importers to navigate these requirements with confidence and reduce exposure to unexpected penalties.

EMAIL Andrew Smith, Managing Director, today to explore how we can support regulatory compliance and success in the United States.

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