Tariff and Labor Issues Impacting International Household Goods and Auto Shipments

International Household Goods Shipping Update

The international shipping industry continues to adapt as tariffs impact global trade. This situation is in flux and changing from day to day, but impacts have already been seen. Even if the tariff and labor issues were resolved today, supply chain delays are expected to persist for the next two months.

Below are a few of the impacts that have already been seen:

• Asia & Trans-Pacific Shipping: Tariffs have led to the cancellation of nearly 100 Asia-U.S. sailings this year, with ocean container bookings down by over 60% in the past three weeks. This has resulted in at least two-week delays in Trans-Pacific shipping, potentially leading to a container shortage in the U.S.
• China & Export Routes: Chinese exporters are rerouting shipments through other countries to bypass newly imposed tariffs, a practice known as "tariff washing." This has caused unexpected congestion at various international ports.
• United States: A surge in demand for Free Trade Zones (FTZs) has emerged, enabling U.S. importers to store cargo while deferring tariff and duty payments. Despite global supply chain strain, capacity in the U.S. remains strong.

In addition to tariff issues, we are also experiencing the following shipment impacts.

• European Union (EU): Major ports are facing extensive delays due to labor strikes and increased shipping volumes. The Port of Antwerp alone has over 100 ships waiting due to recent labor actions. Other EU ports are experiencing delays of a week or more. Additionally, historically low water levels on the Rhine River, a critical shipping route, are causing disruptions. Low water charges are in place, and partners are exploring alternative solutions to minimize delays and costs.

• India & Pakistan: A military conflict between the two countries has resulted in over 200 flight cancellations. Airspace closures over Pakistan and some airport shutdowns are causing flight disruptions across the region.
• Red Sea & Suez Canal Crisis: Shipping lines continue to avoid the Suez Canal due to ongoing crisis conditions, prolonging transit times for shipments moving through the region.
• Global Impact on Air Shipments: As ocean freight delays persist, more shippers may turn to air transport, potentially leading to increased costs and reduced availability.

Auto Shipment Update

While the impact of tariffs on international auto shipments remains relatively unknown, our partners have noted that auto tariffs could affect duty for U.S.-Canada auto shipments. Additionally, we have observed delays in shipping lines entering and exiting Hawaii. Our partners have found a workaround by utilizing an alternate port.

Additionally, it is essential to note that if a vehicle was purchased in a foreign country and has never been registered or titled in the U.S., it will be subject to a 25% tariff in addition to a 2.5% tariff. In some instances, an additional 25% tariff is being assessed (in cases where the vehicle is being brought into the U.S. to perform a service that makes money). This means that the total tariff rate on the vehicle could be approximately 52%.

Current Impact and Looking Forward

Even if the tariff and labor issues were resolved today, supply chain delays are expected to persist for the immediate several months. Shipping lines are facing increasing operational disruptions as they adjust to new alliances, with changes becoming more frequent rather than stabilizing. As noted above, the uncertainty surrounding trade tariffs has already led to a significant decline in trans-Pacific trade volumes, prompting carriers to adjust their services rapidly.

These unpredictable shifts (such as vessel removals, port omissions, and rerouting) are affecting moving companies, forcing last-minute changes that can result in higher costs and extended transit times. Additionally, shipping lines may impose surcharges with little notice, causing price fluctuations between initial quotes and actual shipment departures.

Businesses and individuals should plan to mitigate delays. While this situation remains fluid, Bristol recommends booking moves as early as possible to avoid extensive delays. We will continue to provide updates as tariff and labor issues evolve in the coming months.

Bristol would like to thank our supplier-partners who provided information for this update, including Direct Connect Logistix, Interconex, OCEANAIR, Reindeer Auto Relocation, and Transportation Worldwide.