Featured Headlines:

• Planet Earth may be largely ocean blue, but there’s nothing we can do to keep air cargo from joining ocean routings from stepping through the door to chaos in the Middle East. Airfreight capacity is flying directly into a different kind of “space oddity!”
• Despite taking their protein pills and putting their helmets on, countries from Iran, Jordan, Pakistan, Qatar, and beyond are closing skies amid airstrikes and missile alerts.  As they ground their “tin cans,” their airports are feeling very still indeed!
• Commencing countdown, engines OFF: El Al and Sundor have grounded flights through at least June 27, while Qatar Airways halted operations over Doha’s missile scare.
• After floating in a very peculiar way, Air India suspended all Middle East services—even flights bound for Europe and North America—rerouting planes or turning them around entirely.  Their stars look very different today, gentle readers.
• Markets cheered the recent, tentative ceasefire, driving airline shares up 3–10%.  At least stock traders’ spaceship knows which way to go!
• On top of closed skies, over 200 flights daily are being affected by GPS interference—fake signals jamming navigation across the Gulf and Israel. Airlines are forced into workarounds while pilots sweat the safety checklist.   Can you hear me, Major Tom?   Can you hear me, Major Tom?
• Air freight rates are heading skyward thanks to limited capacity and elevated tariffs on conflict zones. Indian exporters are requesting the opening of alternate routes to West Asia—Bandar Abbas, please hold, Chabahar, you’re up.
•  The airfreight market’s circuit’s dead, there’s something wrong… and there’s nothing we can do… but wait for peace and safety in the Red Sea far below the moon and peace in planet’s Earth’s blue skies.
• Big shoutout to David Bowie’s groovy ghost for writing this article!

Dire Strait:

• Iran is threatening to shut down the Strait of Hormuz in response to Israel’s recent military actions—which could turn the already-stressed container and tanker markets into a logistical soap opera.  As the Whirled Carriers Turn?
• Only about 2–3% of global container traffic goes through the strait, but that small slice carries a big punch.   Can you spell o-i-l, Olive?
• Sea-Intelligence is already waving the red flag, noting that while commercial shipping hasn’t been hit yet, the missiles and drones flying back and forth are… less than reassuring.
• Ports in the UAE, like Jebel Ali and Khalifa, are squarely in the splash zone. Jebel Ali, by the way, just happens to be the 10th busiest container port in the world—no big deal, right?
• This all comes while carriers are already playing hot potato with their ships thanks to Houthi-related Red Sea reroutes.
• With less than 1% of the global container fleet idle and charter rates still flying high, there’s not a lot of wiggle room left if Hormuz shuts down.
• It’s not just boxes on the line either. Over 17 million barrels of crude oil move through Hormuz daily—around 20% of global supply.  That’s the packing-the-punch punch line!
• Analysts say stockpiles are decent for now, but if the strait stays closed for any meaningful length of time, it’s going to hit the oil and fuel markets…well, like a missile.

Haifa Fear “Is Real”:

• Maersk and Hapag‑Lloyd have hit pause on vessel calls and cargo acceptance at the Port of Haifa, citing the escalating Iran–Israel conflict.
• Haifa, now 70% controlled by Adani Ports (with Gadot Group in Israel holding the remainder), is under threat from recent Iranian rocket and drone strikes on Israeli military-industrial sites.
• Hapag‑Lloyd clarified that while it has “temporarily limited” service on its EM3 shuttle to Haifa, its wider operations—including vessels still passing through the Strait of Hormuz—remain on course, with close monitoring in place.
• Iran’s parliament has formally backed closing the Strait of Hormuz, though final authority rests with the Supreme National Security Council.
• Even without a full shutdown, missile threats or GPS interference could prompt emergency service halts—not just in Haifa, but at other regional ports like Fujairah or even Jebel Ali, as carriers hedge against risk.
• Already, insurance costs for Hormuz services have more than doubled since mid-June.
• Carriers may once again detour around the Cape of Good Hope—echoing Houthi-era Red Sea diversions—with added mileage, transit times, and fuel costs (and yummy opportunities to justify rate hikes, of course!).
• If missile or drone strikes intensify near Haifa and Tel Aviv, expect other lines like CMA CGM or COSCO to follow Maersk/Hapag‑Lloyd in suspending Israel service.

• As you may already be aware, the US Trade Representative (USTR) released a report in January on China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance.
• The USTR requested written comments regarding the report’s findings. It received nearly 600 comments on this initial proposal and held a two-day public hearing on March 24 and 26, 2025.
• Then, on April 9, 2025, the President issued Executive Order 14269 titled Restoring America’s Maritime Dominance—which officially launched a Section 301 investigation of China’s targeting of the maritime, logistics and shipbuilding sectors for dominance.
• Following his announcement, the USTR published a Federal Register Notice with specific details of certain proposed modifications of the trade actions in connection with the investigation, which included the following changes:
  • For Annex III, providing for a targeted coverage provision pertaining to vessels in the Maritime Security Program and changing the basis of the fee to net tons.
  • For Annex IV, eliminating paragraph (j), retroactive to April 17, 2025, under which USTR may direct the suspension of LNG export licenses until the terms of paragraph (f) of this Annex are met.
  • For more details, please refer to the FR Notice published on April 22, 2024 (Docket Nos. USTR–2024–0004, USTR–2024–0005).
• Now, the USTR is again seeking comments from interested persons with respect to the proposed modifications addressed in Section B of the April notice (titled Proposed Modifications):
  • For Annex III: the potential impact of a fee based on net tons and the suggested amount of the fee, and implications of a targeted coverage provision for the Maritime Security Program and suggested duration for such targeted coverage.
  • For Annex IV: the potential impact of eliminating the term providing for suspension of export licenses in paragraph (j); applying data collection requirements under paragraph (k) to vessel operators or owners, and if not, what entity is appropriate; and applying Annex IV restrictions to vessel owners or operators, and if not, what entity is appropriate.
• Comments on the proposed modifications must be submitted by July 7, 2025.
• Click here to read the full Federal Register Notice.

• According to the US Food and Drug Administration (FDA), officials have recently sounded the alarm amidst rising concerns that reduced staffing will lead to delayed receipt of hardcopy FDA notices.
• Now, the FDA is encouraging members of the trade community to utilize the Import Trade Auxiliary Communication System (ITACS) for current entry status.
• But don’t worry, because the good ol’ folks from the FDA are here to save the day! You can find a helpful guide on creating new accounts and/or updating existing FURLS accounts here: ITACS Account Management

• The US recently entered a new bilateral Container Security Initiative (CSI) arrangement with the Kingdom of Morocco that will help facilitate the high volume of cargo transiting between both countries.   No, they really mean it!   Those four containers a year are essential, crucial, strategic, and stuff!
• The CSI expands law enforcement efforts between the two countries; and specifically enhances and targets information sharing in order to identify and counter Customs violations and other threats in the cargo environment.
• The ports of Casablanca and Tanger Med are vital ports for the United States’ trade and economic development in Morocco, with Casablanca serving as a vital commercial hub and Tanger Med being the largest port in Africa on the Mediterranean Sea.
• US Customs and Border Protection (CBP) initially developed the CSI as a proactive and strategic security program to enhance global cargo security while facilitating legitimate trade. Operating under the principle that the first line of defense is beyond domestic borders, CSI reflects a forward-deployed, risk-based security model that has become a cornerstone of global supply chain security.
• The program partners with foreign customs administrations and other agencies in key international ports to pre-screen, evaluate, and target cargo that poses a potential threat, using advanced technology, intelligence, and shared protocols.
• Read the official CBP press release here: U.S., Morocco sign new Container Security Initiative.
• The deeper significance of this news is that this CSI could well serve as a broader model globally, and we congratulate The Kingdom and The Republic for getting ‘er done!

• Norfolk Southern (NS) is cranking up the heat on DD (demurrage drama)!
• Starting July 7, leaving your ocean container behind will cost you $200 per day—after the grace period—rising to $300 if you decide to ghost it for too long. Think of it as freight’s version of a late-night parking ticket binge.
• Canadian National (CN) is dropping $170 million to give its Illinois operations a glow-up, including a shiny new logistics hub outside Chicago.
• Union Pacific (UP) is also leveling up with a $250K insurance offering to match BNSF Railway’s. The catch? It’ll cost you an extra $100 per container.
• CPKC admitted it muffed botched bungled flubbed fumbled messed up spoiled and fouled up a major IT switchover from KCS systems in May. As a result, on-time performance dropped like a mic to 57%. But never fear…because they’re promising to fix it by next month…right…?
• Thanks to a contract dispute and Canada’s new labor laws, DHL Express is halting parcel service in six provinces. The rest of the divisions are still operating, but if you’re shipping a box to Nova Scotia, it may as well be Narnia.
• Tariffs are eating truckload demand like termites in a freight trailer. For every 10% tariff enhancement, insiders estimate a 2% reduction in FTL need;, this outlook is more “speed bump” than “fast lane.”
• Southern California ports are feeling the chill. May volumes fell 5% year-over-year (YoY), and 19% from April. Truckers are hauling less as tariffs bite—and reefer carriers are icing out for the second year in a row, with rates falling behind 2023’s lukewarm baseline.   All of this said, June’s rebound will make for interesting news in our next issue!