India Tariffs Reduced (Updated: 2/2)

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Panama Changes the Locks

Shipping Keeps a Straight Face?

Tariff-Raff: This Week's Trade Curveballs

CBP Refunds Are Going Digital…Let the ACH Fun Begin!

Red, White, Blue… and Running a Little Hot

When Logistics Slips on Ice

Panama Changes the Locks

  • For more than a century, the Panama Canal has been many things: an engineering miracle, a geopolitical chessboard, a toll booth for global trade — and occasionally, a mirror reflecting who really holds power in the Western Hemisphere.
  • This week, that mirror cracked.
  • Panama’s Supreme Court ruled that the long-standing concession allowing a Chinese-linked company to operate two key ports at either end of the canal — Balboa on the Pacific and Cristóbal on the Atlantic — was unconstitutional.
  • As a result, Panama Ports Company, a subsidiary of Hong Kong-based CK Hutchison, will ultimately be shown the exit door.
  • Beijing, shockingly, protested! Washington quietly nodded (or did they nod off?!). And Panama? Panama poured itself a strong coffee, straightened its guayabera, and reminded everyone who actually owns this famous canal.
  • This is a canal that never belonged to just one power!   We tease Trump enough; where in the HECK were Obama and Biden on this in recent history?   Well?!
  • To understand why this ruling matters, you must remember that the Panama Canal has never been just about ships.
  • When the U.S. backed Panama’s independence from Colombia in 1903, the canal quickly became a physical extension of American strategy. The Monroe Doctrine — keep outside powers out of the hemisphere — was less theory than operating manual.
  • For decades, the canal zone was effectively a slice of the United States, complete with flags, bases, and a sense that the locks opened only with Washington’s blessing.
  • That era officially ended in 1999, when Panama assumed full control under the Torrijos-Carter Treaties. But history doesn’t drain out overnight. It lingers in contracts, in concessions, and — occasionally — in (locked) courtrooms!
  • Enter China, stage left (and right, but mostly the very far left, ha ha!).
  • Fast-forward to the 21st century. As China expanded its global footprint, ports became strategic real estate. CK Hutchison’s control of Balboa and Cristóbal gave Beijing-adjacent interests a front-row seat to one of the world’s most important maritime chokepoints — even if the canal itself remained “firmly” under Panamanian “control.”
  • For years, Panama tolerated the arrangement. The ports ran smoothly. Cargo flowed. Nobody rocked the boat.
  • Until suddenly, “they” did, you know, rock the boat (and stuff)!
  • Panama’s Supreme Court ruled that the original concession violated constitutional requirements — a legal decision with unmistakably geopolitical ripples. Beijing called foul. Analysts raised eyebrows. And somewhere in Washington, a policy memo probably whispered, “That’s… ummmm ‘convenient as ____!’”.
  • Again, shockingly, the Donroe Doctrine makes a cameo (to full theaters, ironically!).
  • Unlike the Monroe Doctrine’s blunt warning — no new outside empires allowed — the Donroe Doctrine is quieter, legalistic, and distinctly Panamanian. No gunboats. No ultimatums. Just a court ruling, a constitutional citation, and a polite reminder that sovereignty sometimes shows up wearing a judge’s robe.
  • History has a way of repeating itself—unless you plan for it. Reach out to [email protected] to put experience on your side.

Shipping Keeps a Straight Face?

  • The Federal Maritime Commission has once again wandered into the shipping industry’s favorite pastime: pretending everything is totally normal!
  • This time, the FMC has opened a probe into whether ocean carriers are unfairly restricting truckers’ and shippers’ ability to choose their own chassis providers—a practice that might violate the Shipping Act. Shocking, we know.
  • According to the FMC, ocean carriers may be using service contracts, association rules, or other creative loopholes to quietly tell truckers, “No, you may not choose that chassis—use ours and enjoy the fees.”
  • These are the same fees paired with microscopic free time at rail ramps and chassis surcharges so absurd they feel less like pricing and more like a social experiment.
  • At some point, “operational complexity” starts looking a lot like “because we can.”
  • Shoutout: how can this be a profit center when these are the same people who “divested” themselves from the fuss, bother, and cost of chassis??!!
  • Metaphor: Whatever surcharges you now pay for something that was included in your service. Blankets on flights?  Routers with WiFi?  “Hey, we may have stopped giving you the assets, but we can’t stop profiting in that category!   We really can’t!”
  • This is IMPOSSIBLY ridiculous, readers! And, many of you blame your loyal broker or forwarder!   Yes, you do too!
  • The Commission says it wants to know whether these practices “unjustly or unreasonably” restrict competition. Translation: Are carriers gaming the system while everyone else foots the bill? Stay tuned (but we already know the answer, gang!).
  • Meanwhile, over in the Red Sea, carriers are bravely announcing their return—this time with a twist: naval escorts.
  • Maersk and Hapag-Lloyd confirmed that one of their shared Gemini services will transit the Red Sea and Suez Canal with military protection. Which country’s navy? They didn’t say. (Surprise element! If the US, look for tariffs on Dutch and German goodies!).
  • The Gemini ME11 service will connect India and the Middle East with the Mediterranean beginning mid-February. Executives emphasized that these changes are “complex” and affect everything from vessel utilization to service reliability—and, yes, profits. But mostly reliability. Definitely reliability. Not profits… no, definitely not really profits!
  • The alliance proudly points to a 90% on-time performance in 2025, which is genuinely impressive and delivered with a faint air of continental smugness. Très sérieux. Sehr effizient. Say that with a straight face!

Tariff-Raff: This Week's Trade Curveballs

  • India Tariffs Dialed Back (Framework Announced, Details Pending)
    • The United States and India announced a trade framework that would reduce U.S. reciprocal tariffs on Indian-origin goods from 25% to 18%, easing recent tariff pressure between the two countries.
    • In exchange, India committed to eliminate tariffs and non-tariff barriers on U.S. goods and pledged to purchase more than $500 billion in U.S. energy, technology, agriculture, coal, and other products over time.
    • While the announcement is significant, formal implementation guidance has not yet been issued by the Office of the U.S. Trade Representative (USTR).
    • Until official notices are published, importers should treat this as policy direction rather than a filing instruction.
  • Greenland Tariff Threats Fade as EU–U.S. Trade Dialogue Resumes
    • Tariff threats previously tied to stalled negotiations over Greenland have been fully paused, with no duties ultimately imposed.
    • The earlier proposal would have applied 10% tariffs beginning February 1, 2026, escalating to 25% by June 1, 2026, on imports from several European countries—but no Federal Register notice was issued, and the tariffs never took effect.
    • Following diplomatic discussions, including meetings during the World Economic Forum, the administration announced a framework for future cooperation, easing tensions with European allies.
    • As a result, EU–U.S. trade discussions have resumed, and retaliatory measures previously under consideration in Europe have been set aside.
    • Current status: no new tariffs, no compliance actions required, but a reminder of how quickly trade leverage can surface in geopolitical negotiations.
  • New Tariff Authority Targeting Countries Supplying Oil to Cuba
    • A January 29, 2026 Executive Order established authority to impose additional ad valorem duties on imports from countries determined to directly or indirectly supply oil to Cuba.
    • The order does not establish a universal tariff rate; instead, it directs agencies to determine which countries and products may be covered through follow-on guidance.
    • Importers should watch closely for agency determinations or Federal Register notices that would trigger filing or pricing impacts.
  • Economic Forum Remarks (Context, Not Compliance)
    • Tariffs featured prominently in discussions at the World Economic Forum, but remarks were largely directional and strategic, not operational.
    • No new proclamations, Executive Orders, or Federal Register notices were issued as a direct result of forum statements.
    • As always, formal trade action—not podium commentary—drives compliance obligations.
  • With tariffs, today’s headline is often tomorrow’s footnote—and the filing instructions usually come last. If you want to keep an eye on where tariff chatter turns into tariff action, we’re tracking every update, pause, pivot, and paperwork trail on our Trump’s Trade Tariff Updates page.

CBP Refunds Are Going Digital…Let the ACH Fun Begin!

Red, White, Blue… and Running a Little Hot

  • UPS: Apple Pie, Blue Jeans, and Thinner Margins. What else could be more American in 2026?!
    • UPS has long wrapped itself in the warm glow of Americana — brown trucks, hard work, baseball weather, and packages arriving like clockwork.
    • Q4 2025 was more Chevrolet recall than Fourth of July parade. The company’s supply chain division saw revenue fall 12.7% as international freight volumes softened considerably.
    • And tariffs on Chinese goods did what tariffs usually do: distort trade and dent margins.
    • Management is openly expecting “extreme weakness” in early 2026, which is not a phrase normally stitched onto a flag. UPS is hustling to reroute freight from other Asian origins, but those lanes pay less — more blue jeans at Walmart pricing than premium denim.
  • DHL: Route 66 Goes Global!
    • DHL, meanwhile, is channeling its inner road-trip spirit. Its new China–Uzbekistan–Turkey truck-air hybrid feels like logistics by way of Route 66 — longer, cheaper, and surprisingly efficient.
    • By trucking freight to Tashkent and flying it onward, DHL sidesteps congestion, geopolitics, and some sticker shock. It’s not glamorous, but it works — and in today’s trade environment, “works” is the new “luxury.”
  • FAA: Safety Eventually?!
    • The FAA’s newly announced safety overhaul comes with all the fanfare of a late inning substitution — appreciated, but overdue.
    • After more than 15,000 close encounters near Reagan National since 2021, Washington has decided consolidation, better training, and centralized risk management are good ideas.
    • The word “proactive” is doing some heavy lifting here, but at least someone finally checked the radar.
  • S.–India Trade Deal: The Invisible Handshake.
    • The Airforwarders Association is applauding a U.S.–India trade deal that sounds terrific — tariff reductions, stronger ties, and smoother air cargo flows.
    • There’s just one small hitch: no actual deal details. Does this sound familiar yet?
    • Forwarders, seasoned veterans of tariff whiplash, are politely clapping while quietly asking for something bold and revolutionary — clarity.
  • Swissport: The Quiet Adult in the Room.
    • And then there’s Swissport, calmly completing Switzerland’s first fully electric aircraft turnaround. No slogans. No press theatrics. Just ground handling done start-to-finish on electrons.
    • While others debate policy, Swissport is already halfway down the runway toward net zero — proof that sometimes the most disruptive move is simply getting on with it.

When Logistics Slips on Ice

  • Jack Frost didn’t just nip at our noses this winter — he grabbed the entire U.S. supply chain by the lapels and gave it a good shake.
  • Storm One was the ice age reboot nobody asked for. It skated across most of the country (politely sparing much of the South), glazing rails, roads, and power lines alike.
  • Ice, not snow, was the villain — snapping electricity, slowing freight, and turning basic logistics into a full-contact winter sport.
  • Storm Two, meanwhile, had a flair for the dramatic: a bona fide snowstorm that buried Myrtle Beach, the Outer Banks, and most of North Carolina. Sand dunes in scarves. Palms in parkas. Absolute chaos!
  • The railroads are still thawing out. Class I carriers remain in recovery mode, running trains at reduced speeds and shortening routes to keep frozen equipment from cracking like a lake in February.
  • (Tracks shrink in extreme cold, forcing frontline crews to walk and inspect steel that can betray you without warning. Miss a flaw, and Jack Frost gets a derailment for dessert!)
  • Ocean terminals haven’t escaped the deep freeze either. Cranes stiffen, lift machines sulk, and hostlers — the mules of the yard — are far more temperamental when the mercury drops. Cold weather turns efficiency brittle.
  • On the highway side, snow behaves like a surprise hurricane for pricing. Expect a pop in truckload spot rates as capacity tightens and demand spikes.
  • The data (DAT’s three- and seven-day averages) will catch up soon enough — like footprints filling in after a blizzard.
  • There is some warmth breaking through the clouds. Pennsylvania has been quietly shoveling away one of trucking’s oldest headaches by adding 339 new parking spaces across 24 locations — weigh stations, on-ramps, and unused right-of-way areas — part of a broader plan to create 1,200 spots without building new facilities. Arizona has joined the effort with a new I-17 lot where parking demand runs hotter than a cab heater in January. As trivial as this sounds, this is like a hot tub on a ski trip, loyal readers!!
  • Down South, South Carolina is skipping the brick-and-mortar frostbite entirely, rolling out the nation’s first virtual weigh stations. Using weigh-in-motion sensors embedded in pavement, trucks are screened in under a second.
  • Overweight? A camera snaps a pic, pings an officer nearby, and the roadside confirmation begins — no snowbank required.
  • Out West, California is enforcing English-language proficiency standards for commercial drivers after a costly standoff with USDOT froze $40 million in federal funds. Updated CHP regulations now align with revived federal rules, ending a regulatory cold war that left carriers guessing.
  • Bottom line: winter came hard, came twice, and came weird. But the supply chain — bruised, iced, and snowed in — is learning to layer up, adapt, and keep freight moving, even when Jack Frost insists on riding shotgun.

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