Newsletter [April 5 - April 11]
Good Morning
A note from our CEO, Richard Roman Jr
On the regulatory side, the latest Section 232 tariff modifications introduce a meaningful shift in how duties are calculated, increasing exposure for many importers. At the same time, ongoing geopolitical tensions in the Middle East are disrupting vessel routing, extending transit times, and beginning to impact global equipment availability.
We are now seeing early signs of equipment imbalance, particularly with 20GP containers, as extended transit cycles and rerouting affect normal container flows.
These conditions are still developing, but they are the types of signals that typically precede broader market tightening. Proactive planning will be critical in the coming weeks.
The Roundup
What moved the world this week
Customs & Trade Policy Update
Section 232 Tariff Modifications Take Effect April 6
President Trump issued a proclamation on April 2 modifying Section 232 tariffs on steel, aluminum, and copper. U.S. Customs and Border Protection has released implementation guidance, with changes taking effect April 6 at 12:01 a.m. ET.
Key Changes
Full-Value Duty Assessment
Duties will now be assessed on the full customs value of covered goods, rather than only the metal content. This represents a significant increase in potential duty exposure for many importers.
15% Metal Content Threshold
For goods outside Chapters 72, 73, 74, and 76, no additional duty applies if applicable metals account for less than 15% of total article weight.
Metal weights must be aggregated and reported under HTS 9903.82.03
If multiple metals apply, only one Section 232 rate is assessed
Updated Duty Rates
50% on many core steel, aluminum, and copper articles
25% on certain derivatives
10–15% on specific derivative categories
0% in limited qualifying cases
Warehouse & FTZ Treatment
Goods entered or withdrawn from bonded warehouse on or after April 6 are subject
FTZ admissions must now be in privileged foreign status
Country-Specific Adjustments
Reduced rates apply to qualifying UK-origin goods meeting origin requirements
Russian-origin aluminum remains subject to 200% duties and does not qualify for exemptions
Product Exclusions Eliminated
The Section 232 product exclusion process has been terminated, reducing flexibility for importers.
Temporary Cap for Certain Goods
Certain industrial and grid-related equipment will be subject to a temporary 15% rate through 2027.
Drawback Eligibility
Manufacturing drawback is permitted for qualifying trade partner countries, subject to specific origin and AD/CVD restrictions.
What This Means: This is not just a rate adjustment — it is a structural shift in how duties are calculated. Importers should review classification, valuation exposure, and metal weight calculations immediately.
IEEPA Refund Process Still Pending
U.S. Customs and Border Protection continues to move toward an automated refund process for tariffs collected under IEEPA.
Refunds are not yet being issued
Timeline remains dependent on court approval and system readiness
CBP has fully transitioned to electronic-only refund processing:
All refunds will be issued via ACH
Paper checks have been eliminated
To receive refunds once the process is active, importers must have:
An ACE Portal account
ACH refund authorization linked to a U.S. bank account
Importers without proper setup may face delays or inability to receive refunds.
Supply Chain & Logistics News
Middle East Disruptions Impacting Global Shipping Networks
Ongoing tensions in the Middle East continue to affect global shipping operations, particularly around the Strait of Hormuz.
Carriers have responded by:
Rerouting vessels away from high-risk areas, often via Southern Africa
Modifying or suspending certain services into the Gulf region
Adding additional port calls for consolidation
Implementing slow steaming to manage fuel costs
Impact on Transit Times
Transit times are increasing significantly across major trade lanes
Rerouting alone is adding approximately 10–14 days in some cases
Additional port stops and operational adjustments are contributing to further delays
Schedule reliability is becoming less predictable
Planning for an additional 1–2 week buffer on transit times is recommended.
20GP Container Shortage Emerging
We are beginning to see early signs of a 20GP container shortage in key origin markets.
This is being driven by:
Containers not returning to origin markets on normal cycles
Equipment becoming stranded in non-traditional locations
Extended transit times slowing container circulation
Carrier prioritization of 40’ equipment for higher-yield cargo
20GP containers are commonly used for heavy and dense cargo, making this particularly relevant for certain industries.
Longer lead times to secure equipment are already being observed, and early booking will be important to mitigate potential delays.
Cost & Carrier Developments
Carriers are experiencing increasing operational pressure:
Hapag-Lloyd has reported approximately $40–50 million per week in additional costs
Carriers are implementing:
War risk surcharges
Emergency and contingency charges
Fuel-related increases
These cost pressures are expected to continue flowing through to shippers, contributing to rising landed costs and greater rate volatility.
The Forecast
Trends, goals, and what’s on the radar at JR Global
Current conditions reflect early-stage disruption, with several indicators pointing toward potential escalation:
Tightening 20GP equipment availability
Increasing surcharge and cost volatility
Longer booking lead times required
Continued variability in transit times and schedules
At the same time, regulatory changes under Section 232 are increasing duty exposure, while the IEEPA refund process remains pending.
Together, these factors indicate a market environment where both regulatory and operational pressures are developing simultaneously.
The Playlist
What the JR team is listening to this week in the office