John S. Connor, Inc

USTR Announces Section 301 Tariff Increases on Three Products from China Please be advised that the Office of the United States Trade Representative (USTR) announced upcoming tariff increases on certain products imported from China. This action is being taken under Section 301 and impacts imports of certain tungsten products, solar wafers, and polysilicon from the People’s Republic of China. Effective with respect to products entered or withdrawn from warehouse for consumption on or after Jan. 1, 2025, the following Section 301 tariff increases will be implemented: -- Solar wafers and polysilicon: Increased to 50% -- Certain tungsten products: Increased to 25% USTR’s press release can be found here. The FRN and a list of affected harmonized tariff numbers can be found here. We encourage you to assess your supply chains and business operations for any potential impact these tariff increases may have. If you have any questions, please contact our Compliance Team or your JSC account supervisor.

The International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) are currently in protracted labor negotiations, with a critical deadline of January 15, 2025. If a strike is called, expect vessel operations to halt by midnight on January 14, 2025. Failure to reach an agreement by this date could result in labor strikes that would significantly impact major U.S. East and Gulf Coast ports. It is advisable for shippers and forwarders to begin contingency planning and alternative routes. Please stay in touch with your John S. Connor representative, as we continue to monitor updates as the negotiations unfold.

As of November 25th, Unifor’s members at Canadian National Railway (CN) have authorized a strike action if parties are unable to reach an agreement by January 1st. The vast majority of members were highly in favor of this strike taking place. While a spokesperson at Canadian National has assured that CN is “committed to reaching negotiated agreements … that are good for employees, customers, and the economy”, the end result of the discussions is currently undetermined. Negotiations are expected to take place between Nov 30 - Dec 8.

The International Longshoremen’s Association has broken off contract negotiations with East and Gulf Coast port employers, accusing them of pushing automation technology into a new coastwise labor pact that would eliminate union jobs. It was reported that USMX introduced language in their proposal for semi-automated equipment to be used at ILA ports, which the ILA union outright rejected, stating this was another attempt by USMX to eliminate ILA jobs with automation.

On Tuesday, Canada moved to end labor disputes at Vancouver and Montreal ports, pointing to economic damage and the potential for driving away trading partners. The dispute was affecting more than C$1.3 billion ($932 million) in value of goods each day - and had already affected shipments of canola oil, forest products and other goods.

Governor Wes Moore has commended the launch of double-stacked rail operations to and from the Helen Delich Bentley Port of Baltimore. Part of the Howard Street Tunnel Project, the significant milestone is critical to making Maryland more competitive, opening new opportunities for intermodal rail service in the Northeast and from the Port of Baltimore to Midwest markets, generating thousands of new jobs, and delivering critical benefits to the region months earlier than expected.

On December 1, 2024, the Animal and Plant Health Inspection Service (APHIS) will begin implementing Phase VII of the Lacey Act provisions for certain imported plant and wood products. In this phase, Lacey Act declarations will be required for all remaining plant product Harmonized Tariff Schedule (HTS) codes that are not 100-percent composite materials.

The International Longshoremen's Association and the USMX announced in a joint statement this evening they had reached a tentative agreement on wages. The union members will return to work. The agreement extends the prior contract through January 15, 2025. During this period, the two sides will be negotiating other issues which includes automation on the terminals.

The Federal Maritime Commission, in an advisory to all regulated entities reminded the ocean shipping industry’s freight forwarders and NVOCCs, that its consumer assistance, enforcement, and litigation services could be useful when seeking relief from current supply chain challenges caused by the East-Gulf Coast port labor strike. Individuals who believe they have been improperly invoiced for any charges, including detention and demurrage, can file a Charge Complaint with the Commission and have their claim rapidly reviewed. 

USMX filed an Unfair Labor Practice (ULP) with the National Labor Relations Board and requested immediate injunctive relief — requiring the union to resume bargaining a new contract with shipping companies by October 1.  The ILA union and the USMA trade organization representing port operators, remain at odds in their talks. The main issues are worker pay and plans to automate certain container operations.