Good Morning

A note from our CEO, Richard Roman Jr

Welcome to the second edition of the JR Global Newsletter. As global trade continues to evolve, there’s plenty happening across our industry and within our network — so let’s dive in.

In this issue, I’ll be sharing insights in “The Forecast” on a growing area of opportunity: Foreign-to-Foreign market movements, a segment that’s rapidly redefining the landscape of international logistics.

Let’s get started.

The Roundup

What moved the world this week

Customs & Trade Policy Update

China Tariff Framework — Tone Shifts from “100 %” Talk

Recent comments from the White House acknowledge that a blanket 100 % tariff on China would be “not sustainable,” even as negotiations continue — suggesting room for a more targeted, data-driven framework instead of broad increases.

Critical Minerals Momentum

Washington is accelerating rare-earth and critical-mineral partnerships with allies such as Japan and Australia to strengthen non-China sourcing. At the same time, recent dialogue between the U.S. and China has led to a partial resumption of rare-earth exports, with shipments reportedly surging in mid-2025 — a sign of cautious progress in trade relations. Still, Beijing continues to manage exports through quotas and licensing, underscoring the need for diversification and supply-chain resilience.

New Port Entry Fees on China-Linked Vessels

The U.S. has begun assessing new port-entry fees on vessels owned, operated, or built in China, with reciprocal measures already announced by Beijing. The fees are being introduced in phases, starting at$18–$50 per net ton in 2025 and increasing to $33–$140 per net ton by 2028.

For a typical 65,000-net-ton container vessel (about 13,000 TEU), the charge equates to roughly $3.25 million per voyage, or around $250 per container. Depending on vessel class and route frequency, importers could see a pass-through cost increase of $175–$1,600 per TEU over the next few years. Most analysts agree these expenses will be reflected in ocean surcharges and freight adjustments rather than absorbed by carriers.

Strategic Insight:

Importers should update landed-cost projections to include potential surcharge exposure and monitor carrier tariff filings closely. Where possible, explore alternative routings or non-China-flag services to mitigate rising cost impacts as these phased fees take effect.

Supply Chain & Logistics News

Europe Lanes: Stable at Normalized Levels

After a Q3 decline, Asia–Europe spot rates have stabilized as carriers blank sailings to balance capacity. This stability is favorable for contract planning, though policy-driven volatility remains a risk heading into 2026.

China → Europe Remains Attractive

The Asia–Europe corridor continues to be one of the most cost-effective lanes for time-sensitive SKUs as we approach year-end.

Operational Risk:

Despite current rate stability, expect tight space and blank sailing cycles around December and pre-Lunar New Year. Booking early and locking in carrier allocations will help avoid rate spikes or delays.

The Forecast

Trends, goals, and what’s on the radar at JR Global

Foreign-to-Foreign Opportunities

By Richard Roman Jr., Co-Founder & CEO, JR Global

As tariff pressures and geopolitical realignments reshape global logistics, more shippers are pivoting toward diversified Foreign-to-Foreign (F2F) strategies. We’re seeing surging activity across Eurasian trade lanes, where companies are expanding reach and re-routing cargo to optimize time, cost, and exposure.

At JR Global, we view this as a strategic evolution, not a detour. Trade flows between Asia ↔ Europe andAsia ↔ South America have grown steadily, with enhanced capacity and schedule stability creating viable alternatives to U.S.-bound lanes.

A standout trend is the China–Europe rail network, anchored by hubs in Xi’an and Chongqing. It delivers a powerful middle option — faster than ocean, far cheaper than air, and highly reliable for time-sensitive goods. For many clients, this has become an essential component of regional diversification and duty mitigation.

Our team continues to help clients design and execute end-to-end F2F strategies, from cost modeling and routing design to compliance and execution. Whether it’s Asia → EU, Asia → LATAM, or intra-Eurasia movements, we build the visibility and control needed for resilient, scalable trade networks.

Strategic Insight:

Now is the time to pilot secondary routes and evaluate non-U.S. market entries. Hybrid sea-rail models can balance cost, speed, and tariff risk while strengthening supply-chain continuity.

The Shortcut

Smart tips for smart shippers — key takeaways from this week’s newsletter

Tariff tone softens: U.S.–China talks signal the proposed 100 % tariff may be scaled back, suggesting short-term stability.
Critical minerals on the move: New U.S.–Japan and U.S.–Australia partnerships bolster non-China supply chains.
Port fees in focus: A new ~$300 per-container fee on China-flagged vessels is likely to impact import costs.
Steady Europe lanes: Balanced capacity and consistent rates provide a window for strategic procurement.
Foreign-to-Foreign expansion: Eurasian and Asia–South America trade lanes continue to grow as shippers diversify.
Rail advantage: The China→Europe rail corridor offers a fast, cost-efficient alternative for time-sensitive cargo.

The Playlist

What the JR team is listening to this week in the office

Spotify Playlist

Sources

Newsletter [Oct 26 - Nov 1]