Trendwatch: Legal challenges for tariffs and de minimis, as EU eyes new ecommerce rules; Houthis declare maritime blockade on Israel’s Haifa Port; No container tsunami heading to Los Angeles, says port chief

Legal challenges for tariffs and de minimis, as EU eyes new ecommerce rules

Tariffs and ecommerce are in the legal spotlight on both sides of the Atlantic. 

A US autoparts retailer has filed a lawsuit in the Court of International Trade, arguing that ending the de minimis exemption is unlawful, and should be reversed.

The retailer said the policy change would force it to cease most of its operations by the end of next month. 

Houthis declare maritime blockade on Israel’s Haifa Port

Yemen’s rebel Houthi movement has announced a “maritime blockade” on Israel’s Haifa port, warning commercial shipping companies to steer clear or risk becoming a target, according to Breakbulk News.

In a televised statement reported by Reuters May 19, the group’s military spokesperson, Yahya Saree, said Haifa port had been officially added to the group’s list of maritime targets. He warned all shipping companies operating vessels bound for, or currently docked at, Haifa to change course immediately.

“All companies with ships present in or heading to this port are hereby notified that, as of the time of this announcement, the aforementioned port has been included in the list of targets,” Saree said.

No container tsunami heading to Los Angeles, says port chief

The head of the busiest U.S. container port doesn’t expect a big jump in import shipments during the pause in China tariffs.

“Next we will see an uptick in [vessel] bookings from China, but I don’t see a huge surge that will impact the Port of Los Angeles,” said port Executive Director Gene Seroka, in a monthly media briefing. “Probably less than the 30% that we had during the ‘peak of the peak’ of COVID.

“From all the stakeholders we talk with and all the data we review, we are seeing bookings pick up at Asia ports. But prices are still very much elevated, leading retailers, manufacturers and other importers to carefully evaluate their strategies.”

How lower China tariffs will affect direct-to-consumer imports

A reduction in U.S. tariffs on China-made goods has generated optimism among direct-to-consumer shippers, but there’s still plenty of work ahead for their supply chains to adjust to evolving trade rules.

Direct shipping models have faced tariff and compliance-related turbulence since the U.S. eliminated de minimis eligibility for China and Hong Kong products on May 2. The exemption, which allows sub-$800 imports into the U.S. to avoid added duties, has long helped Shein, Temu and other e-commerce companies keep prices low when shipping China-made orders to consumers.

Bottleneck fears as cargo growth outpaces airport infrastructure investment

Forwarders and airlines fear new bottlenecks at airports as cargo growth outpaces infrastructure investment.

Brandon Fried, executive director of the Air Forwarders’ Association, told The Loadstar on the sidelines of IATA’s CNS conference in Miami last week: “I think you’re going to see a bullwhip effect, because there’s an uptick in the demand for air freight, at least in the short term.  

U.S. regulators begin investigation into practices of flags of convenience

Long one of the major concerns of the shipping industry, which was heightened by the growth of the shadow fleet, the Federal Maritime Commission announced that it is commencing an investigation into the practices of the so-called “flags of convenience” and the unfavorable business conditions that they create. The FMC reports it is concerned about the conditions created by the wide and uneven range of foreign vessel flagging laws, regulations, and practices, saying they could be creating unfavorable conditions in the foreign trade of the United States.

In a detailed presentation of the issue to be released in the Federal Register on May 22, National Maritime Day, the FMC highlights that some foreign countries have engaged in a “race to the bottom,” lowering standards and easing compliance requirements to gain a potential competitive edge in attracting ships to their registry. It believes that some nations are competing to lower the cost of registering and flagging vessels “beyond the point where they can ensure the efficiency, reliability, and safety of vessels.”