These days I’m dealing with industrial manufacturing using a fair amount of semi-processed steel imported from China to the US PNW. I’ve got containers on two different MSC ships that were on Shanghai to Seattle routes that have made unscheduled stops in Prince Rupert, BC (which has railhead).
While it’s winter in the North Pacific and there’s been interesting weather lately the 2nd ship’s destination changed while it was still relatively close to Japan.
I’m very curious about which customer both doesn’t want to import through the US and has enough influence to get a Canadian port call added to the detriment of a ship/route schedule. I suppose I’ll never know but switching to a just in not quite enough time manufacturing is giving me more grey hair.
Turbulent times for shipping companies, what will the ship pay to enter US ports, how much duty be assed on the cargo. What ports are best in a new rotation, will they quickly fill up with late comers are shut out.
Prince Rupert has pros and cons as a gateway for US bound cargo. Pro it’s a shorter transit from Asia and faster rail transits to the center of the US. Con it does not serve the Seattle area well. PR facilities are far more limited than California. Rail capacity limited too. Not likely to accommodate much diverted US destined cargo.
It’s not just the PNW Importers dependent on smaller US ports likely to suffer under possible new tonnage tax rules. The fee you read about in the press not the whole story. It could go from pay first entry US that covers all subsequent calls that voyage. To pay each port call as the vessel transits US ports on a single voyage
Honest I have no advice for US importers other than wait and see.
Lots of things are not very clear about the future for US - Canada trade, not just tonnage rules.
25% tariffs on Canadian export to US was imposed on Tuesday but partly delayed today:
But this only apply to auto part, not ALL goods, so some questions remains:
Will goods from say Japan that is landed in Prince Rupert but destined to a US destination be subject to 25% tariff when transiting the Canada - US border?
If some US company should start a feeder service from Prince Rupert to say Seattle with US-flag ships built in USA, will they have to pay 25% tariff if the goods is from Japan and carried in sealed containers with manifest stating destination Seattle “in transit via Prince Rupert”?
My employer’s long term plan is to establish a free trade zone at our plant that will allow us to not pay duties on imported materials until we ship a completed part/assembly. We currently draw back duty/tariffs paid on materials used in products we export.
FTZ is a good plan they work well for manufacturing . It’s not easy for small importers on their premises though, red tape, certification etc. Public FTZs are useful for traders importing a seasonal commodity, enters the cargo as it’s sold with the purchaser paying duty.
Back to Prince Rupert it’s not likely MSC diverted the vessel for a single or few importers. Very difficult to change the load - discharge plan on a large container ship. Boxes over stowed have to be moved and returned. Really only practical option is unload the whole vessel. Guessing it’s a gesture to indicate they’re not going to pay high tonnage tax.
Since the tonnage tax is aimed at ships flying the Chinese flag, or built in China, maybe China could retaliate by imposing an even higher tax on US-flag/US-built ships calling at Chinese ports?
Oh well, that will really hurt a few ships on the USWC - Honolulu - Guam - China run,
My guess is China will tariff the cargoes that will hurt CJ the most: USA agriculture products. Corn, wheat, beef, pork, etc. Drive up the price in China to steer Chinese consumers to South American and Canadian supplies.
The farmers in Red states won’t like this and they are CJs most loyal constituency.
Looks like you will have plenty of domestic supplies to fill your belly with: https://www.reuters.com/world/chinaquote]/china-boost-food-imports-latin-america-europe-us-trade-war-escalates-2025-03-05/
How much sorghum do you consume?
BTW; Don’t count on Europe to take your surplus food supplies. Most US food products doesn’t meet US food safety standards.
But according to what some people say, many farmers stay on the edge of bankruptcies and have to depend on government “handouts” to stay in business. Also, there is the matter of all the Chinese-owned farmland in the US. (Wonder what genius allowed that purchase to happen?)
A few minutes into a search, I can’t find a definitive answer to that question. It seems to have always been allowed, with some exceptions -
" There are no states with an absolute prohibition on foreign ownership , however, approximately twenty-five states specifically forbid or limit nonresident aliens, foreign business entities, or foreign governments from acquiring or owning an interest in private agricultural land within the boundaries of their state."
Canada owns the most.
I could be wrong but from what I understand, Smithfield Packing, the USA #1 pork producer is owned by the Chinese. Interesting “sub-fact”, you can go to some regions of Mexico and say “Smithfield” and the locals know exactly what you are talking about. When they want a US job, they know they can find one in Tarheel, NC.
