This week featured the introduction of various new sanctions and tariffs, with the EU and US imposing new restrictions on China and Russia, while the UK saw the release of major parties’ manifestos.
The big picture: On Wednesday (12 June) the EU launched new tariffs against China, hitting electric vehicles with an additional 25% duty. While the bloc hopes to raise €2bn with the new measures, industry figures in both China and Europe are unimpressed, with fears that an escalating trade war could hit profits on both sides.
The US also rolled out a new raft of sanctions in a bid to impair Russia’s war effort. In addition to the Moscow exchange and Russian firms, entities from around the world - including China, the UAE, South Africa and Turkey - were also hit by fresh measures.
Russia swiftly retaliated by halting the exchange of US dollars and euros across a range of financial transactions, deepening its commitment to China’s Yuan as its reserve currency.
Good week/bad week: Baltimore’s port and main shipping channel became fully operational again this week following several months of partial closure and subsequent disruption.
An estimated 50,000 tonnes of steel and concrete were removed from the Patapsco River, after a section of the Francis Scott Key Bridge collapsed in late March when a container ship collided with one of its support columns.
The Port of Baltimore processes more farm equipment and cars than any other in the country, but many of those shipments had to be rerouted to other entry points.
US transport secretary Pete Buttigieg said those commercial vessels “belong in Baltimore today” during the reopening on Wednesday.
“We have every indication that that is what is taking place, but we will be reinforcing that expectation as we speak with players up and down the supply chains.”
Not so good news for a key UK point of entry, as ongoing concerns about the implementation of the UK’s Border Target Operating Model (BTOM) rumble on, this week centring on the experience of Italian haulier Antonio Soprano, who was delayed at Sevington for 55 hours, according to the Guardian.
With no proper food and only his cab to sleep in, the highlight of Soprano’s wait was a trip to McDonalds, as suggested by customs officials.
He was unsurprisingly unimpressed by his experience at Sevington and declared the episode “a mess”.
How’s stat? Six. The number of consecutive weeks the Drewry World Container Index reports that 40ft freight containers have risen in cost. This week prices rose 2% to US$4,801 per unit.
Last summer, containers hit lows of $1,474 in July and then dipped to $1,342 in October.
The week in customs: An update from HMRC for traders, as those subscribed to CDS can now access a new service enabling them to claim back VAT and import duties.
Quote of the week: “The EU Green Deal came with the promise of growth and jobs, and that's not possible if our EVs are all imported. The tariffs are welcome, but Europe needs a strong industrial policy to speed up electrification and localise manufacturing.”
Julia Poliscanova of the European environmental group Transport & Environment, offering Reuters a different take on the EU’s new China tariffs. Food for thought following an EU parliamentary election dominated by concerns about a rightward shift partly driven by the bloc’s handling of climate issues.
What else we covered this week: With those EU elections wrapping up on Sunday, we brought you a Monday-morning explainer on what the results could mean.
A piece featuring expert James Tinsley from members Currency Solutions offered traders advice on how to manage foreign exchange risk.
We also had a member-exclusive write-up of our Lunchtime Learning session on the CDS deadline, with insight for traders still navigating the migrations.
True facts: Today marks 65 years since the opening of Disneyland’s monorail in Anaheim, California. Walt Disney had hoped the monorail would become a more commonplace form of public transport in the US, though this never took off.
The transport system, marked by its single rail structure, is notable elsewhere in the world. Chongqing in China is home to the world’s largest monorail network, with six lines serving the public across the cities. San Paulo in Brazil is also building several monorail lines, with designs influenced by China’s BYD, which is signed up to provide parts and services in the construction.