Trendwatch: U.S. importers and exporters fret over port fees on Chinese ships; Panama Canal maps out $8bn investment plan over next decade; Poland border closure sets up speed bumps on China-Europe railway: analysts

U.S. importers and exporters fret over port fees on Chinese ships 

Ocean shipping companies say importers and exporters won’t have to pay surcharges when new fees are imposed next month on Chinese ships at U.S. seaports. 

Some businesses fear price increases are coming anyway. 

Peter Friedmann, executive director of the Agriculture Transportation Coalition, which represents American farmers, said ocean carriers can’t pass on extra costs today because trade flows are falling and carriers are fighting for market share. 

Panama Canal maps out $8bn investment plan over next decade 

The Panama Canal Authority (ACP) has set out an ambitious investment plan, for the next ten years, with the aim of strengthening its strategic role in global trade and ensuring its sustainability.   

The strategy was presented Tuesday, at a media event chaired by the Minister for Canal Affairs, Jose Ramón Icaza; the Canal Administrator, Ricaurte Vasquez; and the Deputy Administrator and Sustainability Officer, Ilya Espino de Marotta. 

Poland border closure sets up speed bumps on China-Europe railway: analysts 

The sudden closure of Poland’s border with Belarus has already caused logistical disruptions for users of the China-Europe Railway Express, analysts and industry players said, adding that Warsaw would be risking its position as a major transit hub between Europe and Asia if it allowed a prolonged shutdown. 

The nearly 400km (250-mile) boundary line has been closed since September 11, with Polish Prime Minister Donald Tusk citing national security concerns over Russia-led military exercises taking place across the border. 

US tariffs on India take their toll on air cargo demand 

Air cargo volumes being flown from India to the US have plummeted in recent weeks as a result of Washington’s decision to implement tariffs of up to 50%. 

The latest weekly figures from data provider WorldACD show that air cargo volumes from India to the US dropped by 12% week on week in the week ending August 31 (week 35) and by a further 14% in week 36. 

WorldACD said the slump in demand followed a surge in volumes in mid-August as companies rushed to move goods ahead of the latest tariff increase on India. 

Canada Prime Minister looks to fast-track Port of Montreal expansion 

Canada's Prime Minister Mark Carney says that the Port of Montreal's planned expansion is one of the top priorities for the country's new Major Projects Office (MPO). 

According to CBC, Carney is looking to have the port's expansion help diversify commerce and open new markets for Canadian businesses. The project would increase the Port of Montreal's container handling capacity by an estimated 60%, and create space for 1.15 million containers. It would also include the construction of a new terminal just over 22 miles away in Contrecœur, Quebec, which would have an additional railway yard, two berths and a truck gate linked to the road network. 

US kicks off consultation process for USMCA review 

The U.S. has unveiled the official process it will use to collect public feedback on the benefits and drawbacks of the U.S.-Mexico-Canada Agreement through a Federal Register notice submitted for public inspection on Tuesday. 

 The move is a critical step ahead of a trilateral diplomatic review of the free trade agreement next year. When the USMCA was signed in 2020, the three countries agreed to conduct a “joint review” meeting every six years to assess and potentially update the terms of the deal. Each country must submit a list of recommended modifications at least one month before the meeting. 

Trump tariffs stall Japanese exports to U.S. 

Exports from Japan to the United States plunged by nearly 14% year-over-year in August, as President Donald Trump's tariffs on cars and auto parts continue to strain trade between the two countries. 

According to Japanese Finance Ministry data reported by the Associated Press, shipments of automobiles from Japan to the U.S. fell by more than 28% in August, mirroring an almost identical year-over-year dip in the previous month. And although the U.S. lowered its tariffs on Japanese automobiles and parts from 27.5% to 15% on September 16, that 15% rate remains well above the 2.5% tariffs that had been in place for decades. Nearly a quarter of Japan's exports to the U.S. come from its automotive sector, which accounts for 3% of its total economy.