Canada Tariff Update: Talks Collapsed, 50% Tariffs Now in Effect
As reported earlier this week, trade talks between the USA and Canada broke down and the US has imposed a 50% tariff on over 800 Canadian products, including beverage alcohol, effective as of August 22. Canada has responded by proposing tariffs dollar-for-dollar on American goods, with an effective date of September 8. At this point, there is little hope of returning USA beverage alcohol to the shelves of Canadian stores at any time in the near future, and USA importers of Canadian wine, spirits, and beer are now paying a hefty tariff. Canadian officials have stated that they have no plan to return to Washington for additional talks until the USA proposes an acceptable deal and, in the meantime, they will focus on their domestic economy and trade relationships with other countries. 

Strait of Hormuz: Escalating Fast
This situation has gotten significantly worse. On August 18, a Greek bulker (the Minoan Dignity) was attacked in the strait, killing the chief engineer; another tanker was attacked off Oman on August 25. In response, Washington announced a sweeping new sanctions campaign (“Operation Economic Outcast”) aimed at Iran, with deadlines for other countries to cut commercial ties or face U.S. penalties. Trump has ordered U.S. negotiators to pause contact with Iran, and Iran’s parliament says the strait stays closed until the U.S. lifts its naval blockade and sanctions. Iran has also published a blacklist of 46 vessels and imposed transit fees, and the UAE has halted trade with Iran entirely. Daily transits are down to roughly 13 vessels versus 70–100+ before the crisis. Oil futures have ticked up, though no new carrier fuel surcharges yet. We’re watching this closely and expect continued volatility in the region.

Chile/Argentina Border: Closed Again
Just as the backlog was starting to clear, the Mendoza–Los Libertadores crossing closed again August 24 due to a new weather system, with authorities saying it could stay closed through August 31. Some of the truck backlog cleared during last week’s brief reopening, but this new closure will slow recovery further. Rerouting options exist but at significant added cost and may not decrease overall transit time. Please reach out if you any questions on the options or need additional details. In the meantime, budget extra time for shipments originating in Argentina wine growing areas.

Rotterdam: Several Disruptions Stacking Up
A number of things are hitting Rotterdam at once: barge handling at the ECT Euromax Terminal is restricted through early September due to crane installation work, a system failure at Rotterdam World Gateway on August 26 created a handling backlog that’s still being worked through, and rail access to the port will be fully closed the weekend of August 29–31. On top of that, two labor actions are coming: a dockworkers’ strike September 4 (affecting vessels, barges, trains, and trucks through the evening) and a nationwide Dutch rail strike September 9 that will hit the Betuweroute, the main rail freight link between the Netherlands and Germany. The region has been combatting disruption for months now so continue to plan for potential delays and charges for container storage if you’re routing through Rotterdam over the next two weeks

German Rail & Ports: Still Recovering from Last Week’s Strike
The German rail network is still congested from last week’s 24-hour port strike, compounded by a string of unrelated signal and track issues across the network this week and tighter train access into Hamburg since August 18. Loading delays at some Hamburg terminals are running 4–7 hours. Separately, the third round of wage talks between union and port employers began August 24 with no new offer on the table — the gap between the union’s ask (8.2% over 12 months) and the employers’ offer (5.1% over 19 months) remains wide, so further strikes in the coming weeks are possible.

Rhine Water Levels are Rebounding
Good news for once: after bottoming out at a record 8 cm on August 14, the Kaub gauge has rebounded to 65–79 cm thanks to recent rain. That’s real relief after weeks of crisis-level lows, but the longer-range forecast into September is dry again, so levels could drop back quickly. Barge capacity and schedules haven’t fully normalized yet, and low-water surcharges remain in place at high levels due to continued restrictions.  

Typhoon Saudel Made Landfall in China This Week
As flagged last week, Typhoon Saudel made landfall on the Zhejiang–Fujian coast overnight August 27–28 as a strong typhoon, after briefly peaking as a super typhoon. Xiamen, Fuzhou, and other Fujian and southern Zhejiang ports suspended operations; Ningbo-Zhoushan and Shanghai largely avoided a direct hit but saw precautionary gate suspensions. This adds to the backlog those ports were already clearing from Typhoon Dolphin. If you have cargo moving through this region, recheck gate appointments before pickup or delivery — expect a 3–7 day recovery window at the affected ports.

Panama Canal and Suez Canal
As previewed, the Panama Canal Authority’s draft cut to 48.0 feet took effect August 26 (47.5 feet follows September 3).   Restrictions and potential surcharges are in play on transpacific routes, and we are monitoring impact on the main wine and spirits lanes. For the Suez, more carriers are now utilizing the Suez for their east-west routes, primarily on the Asia to Europe vessels, with MSC, Gemini (Maersk/Hapag), and the Ocean Alliance all sending selected services via the Canal. This could lead to normalization of this route by the end of the year and the slow roll out is preventing any major bunching issues as of now.  

IEEPA Refund Case: Still No Ruling
There is no decision yet on class certification for importers with “finally liquidated” entries. The CIT is expected to issue a formal decision in the coming weeks. We will flag it the moment there’s a decision and a clear path to refunds for that category. In the meantime, continue to monitor your refunds and let us know if you have any issues — whether it is on creating your ACH refund account or questions on the refund process.  

LCL Services from France, Italy, and Spain/Portugal – It’s HOT and all containers are refrigerated! 
Bi-monthly departures continue from each of these countries for your small shipments, offering a per case rate from point of pick up to the Alba Wine and Spirits warehouse in Edison, New Jersey. For the summer months, all containers will be temperature controlled, ensuring your cargo is protected from summer heat. Shipments from other European countries can be added into the mix, with pick-ups offered in most European countries. Please let us know if you need any further information!