Supply Chain Update

*** The International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) have reached a tentative agreement on all items for a new six-year master contract averting a potentially damaging strike on the US East and Gulf coasts. The agreement will replace the expiring contract which had been extended after a short strike in October 2024. ***

As we look ahead into 2025, several critical issues are expected to shape the global supply chain landscape, particularly concerning ocean freight volatility, the new administration, and tariff uncertainty. Below is a closer look at these pressing challenges:

1. Ocean Freight Volatility

• Ongoing Freight Rate Fluctuations: Ocean freight will remain one of the most volatile segments of global trade in 2025 as ongoing Middle East conflicts require longer transit times to divert away from the Red Sea area and the Suez Canal. Ocean carriers may still implement congestion surcharges that would increase current ocean freight rates, remaining through any period of port congestion.

• Port Congestion and Labor Challenges: The US West Coast continues to experience congestion due to the high volume of goods and limited capacity to handle increased demand due to the rerouting of trade. Even though the strike was averted, it will take 4-6 weeks to process rerouted cargo currently on the water. Supply chain disruptions and delays may continue to ripple through supply chains in 2025.

2. New Administration / Tariff Uncertainty

• Changes in Trade and Economic Policy In 2025, the impact of a new political administration will become more evident as businesses may face shifts in trade regulations, customs procedures, and cross-border logistics. Policy changes could lead to new tariffs or restrictions that impact the movement of goods. We will continue to monitor and stay ahead of these developments.

• Tariff Uncertainty: New tariffs on specific goods or industries could emerge in 2025, particularly in response to geopolitical tensions or domestic economic priorities. To remain informed, please read our 2025 Tariff Communication on potential tariff increases and how they affect pricing.

We deeply appreciate your partnership and understanding during these challenging times. Please feel free to reach out to our customer service team if you have any specific concerns or need further assistance regarding your shipments. Thank you for your continued trust in Craig Bachman Imports, Inc. We remain committed to providing you with the best service possible under these difficult circumstances.

Best regards,

Craig Bachman

President
Craig Bachman Imports, Inc.