 |
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Lead IEEPA Refund Case Shifts to New Plaintiff: After selecting Euro-Notions Florida as the plaintiff of the new lead case on IEEPA refunds, Court of International Trade (CIT) Judge Richard Eaton reissued his earlier order directing U.S. Customs and Border Protection (CBP) to refund IEEPA duties on all unliquidated, not finally liquidated, and finally liquidated entries. The reissued order comes after the initial plaintiff in the lead case filed a voluntary notice of dismissal on April 6. |
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Per an update filed with the CIT today, CBP will use the entries of Euro-Notions Florida to test CAPE Phase 1, the first version of CBP’s automated refund system. |
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As with Judge Eaton’s initial refund order, compliance with the reissued order is suspended while CBP continues building out CAPE. |
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Given the case transition, the 60-day window for a potential government appeal of the scope of Judge Eaton’s order has been reset. Under the timeline for the initial order, the government’s deadline to appeal would have been May 6. With the order now reissued, the deadline extends to approximately June 7, giving the government additional time to decide on challenging the breadth of the refund mandate. |
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CBP is expected to provide another progress report on CAPE on April 14, 2026. |
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Other CAPE Developments: CBP previously outlined entries that will not be eligible for refunds under Phase 1 of CAPE, set to launch as soon as April 20, 2026. |
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The following entry types are excluded from refunds via CAPE Phase 1: entries flagged for reconciliation and Entry Type 09 (Reconciliation Summary); entries designated on a drawback claim; entries covered by an open protest; entries not filed in the Automated Commercial Environment (ACE), or without a liquidation status in ACE; and entries subject to Antidumping and Countervailing Duties (AD/CVD) for which the Department of Commerce has issued liquidation instructions, but are pending liquidation. |
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Per CBP’s March 31 update, CAPE’s claim portal is 85% complete; the mass processing component is 60% complete; the review and liquidation/reliquidation component is 80% complete; and the refund component is 75% complete and undergoing critical testing before deployment to ACE. |
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Flexport advises all customers, including those filing reconciliation and claiming drawback, to file protests with CBP. Additionally, confirm ACE access and set up electronic refunds in ACE; calculate the total refund amount you’re owed with the Flexport Tariff Refund Calculator; and automatically audit your entries with Flexport’s Audit Your Customs Broker. |
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President Trump Announces Plans for 50% Tariff Related to Iran: In an April 8 Truth Social post, President Trump indicated that he would immediately impose a 50% tariff on "countries supplying military weapons to Iran," with no exclusions or exemptions. |
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President Trump did not specify which statutory mechanism would be used to impose the duty, nor did he identify the trading partners that would be affected. |
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Modified Steel, Aluminum, and Copper Tariffs Now in Effect: As of April 6, steel, aluminum, and copper imports are subject to modified Section 232 rate structures. Many articles that are mostly composed of steel, aluminum, or copper are now subject to a flat 50% tariff, while derivative products listed in the Annex I of the proclamation are now subject to a 25% tariff. Duties are now assessed on the full value of the imported product, rather than the metal content alone. |
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Many goods have also been removed from the list of covered derivatives, including those in Chapters 1–71. |
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Derivative products outside Chapters 72, 73, 74, and 76 that contain less than 15% of steel, aluminum, or copper by weight will be exempt from these tariffs. For products included on multiple lists in the proclamation, eligibility for the exemption is based on the aggregate weight of the listed metals. |
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A temporary 15% rate, inclusive of most-favored-nation (MFN) duties, applies to metal-intensive industrial equipment and electrical grid equipment through the end of 2027. Products manufactured abroad using 95% or more U.S.-origin metals face a 10% rate, up from 0% under the prior structure. |
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U.K.-origin articles: Provided that at least 95% of the product’s metal was smelted or cast in the U.K., articles that would otherwise face the 50% rate are subject to 25%, while those that would face 25% are subject to 15%. |
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Drawback will be available only for goods originating from nations with trade agreements with the U.S., and are smelted and cast in one of those nations. |
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Russian-origin aluminum products remain subject to a 200% rate on their full value. |
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Section 232 Tariffs on Pharmaceuticals: Upcoming tariffs on certain pharmaceutical products will take effect on July 31, 2026 for certain large companies, and on September 29, 2026 for smaller companies. |
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Patented drugs manufactured by companies that have not agreed to MFN drug pricing will be subject to a capped 100% tariff. Companies that commit to reshoring manufacturing to the U.S. qualify for a reduced 20% rate during construction, which will rise to 100% on April 2, 2030. Meanwhile, companies that reshore to the U.S. and agree to MFN pharmaceutical drug pricing will be subject to a 0% rate while they construct U.S. facilities. |
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Certain trading partners will be subject to preferential rates: 15% for products from Japan, the EU, and South Korea, as well as joint products of Switzerland and Liechtenstein. U.K.-origin products will be subject to a 10% rate. |
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These duties will be eligible for drawback. |
TRANS-PACIFIC EASTBOUND (TPEB)
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Carriers increased blank sailings from April through the first half of May, with a focus on pulling capacity from the U.S. East Coast and Pacific Northwest. |
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Overall import demand has increased in recent weeks. |
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Given the uptick in blank sailings, overall vessel utilization has improved. |
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Carriers have implemented April 8 General Rate Increases (GRIs), following earlier increases on April 1. |
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Emergency bunker surcharges (EBSs) are in effect. Further adjustments, including inland fuel surcharges (IFSs), take effect on April 17. |
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Carriers have pushed Peak Season Surcharges (PSSs) to May 1, given the implementation of EBSs and IFSs in April. |
FAR EAST WESTBOUND (FEWB)
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European consumer demand remains flat, but pressure at origin is building. |
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China’s official Manufacturing Purchasing Managers’ Index (PMI) began expanding again in March, hitting 50.4% (+1.4%). With factories accelerating production, export-ready cargo is piling up at Chinese loading ports. |
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Following heavy blanks in February and March, carriers have reduced blank sailings significantly. On average, only four blank sailings are scheduled on the Asia-Europe route for the upcoming week. |
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New 2026 vessel capacity is entering the market. However, with vessels still tied up on longer Cape of Good Hope routings, empty containers are not returning to Asia on time. This is driving shortages of 40′ HC containers at Chinese loading ports. |
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Spot rates have begun to soften, with a decline in the Shanghai Containerized Freight Index (SCFI) last week. Sluggish European consumer demand has made it difficult for carriers to sustain rate increases, especially as new vessel capacity enters the market. |
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Carriers are implementing emergency bunker surcharges (EBSs) in response to Cape of Good Hope diversions. |
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Rates are expected to remain under pressure. Carriers are likely to continue using blank sailings to offset declines in the SCFI. |
TRANS-ATLANTIC WESTBOUND (TAWB)
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Vessel utilization remains highly elevated, with carriers reporting load factors exceeding 93% across Northern European and West Mediterranean origins. |
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Carriers are continuing to cut network capacity by 10-15%, removing certain strings and implementing blank sailings to counter port congestion and realign schedules. |
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April volumes are holding strong. Between February and March of 2026, volumes to the U.S. East Coast and Gulf increased approximately 26% year over year (Source: Datamyne). |
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Operations: Most of Northern Europe and the Mediterranean continue to face congestion, with berth delays of 1 to 4 days and yard utilization above 85%. |
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Equipment: Critical container and chassis shortages persist across Germany, Benelux, Austria, Hungary, and Slovakia. These shortages are driving inland delays of 2 to 4 days due to terminal congestion, driver shortages, and border bottlenecks. |
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Spot rates from Northern Europe to the U.S. East Coast continue to hold steady. |
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As tight capacity persists, all major carriers have announced coordinated Peak Season Surcharges (PSSs), General Rate Increases (GRIs), and Rate Revision Increases (RRIs) increases across Northern European, West Mediterranean, and East Mediterranean origins. |
INDIAN SUBCONTINENT TO NORTH AMERICA
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Major ports in Northwest India, including Mundra and Nhava Sheva, are seeing increased congestion driven by the trickle-down impacts of the Middle East conflict. This trend is expected to persist. Find the latest ocean market impacts on our Middle East escalation blog. |
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To the U.S. East Coast: More capacity is available in April compared to March, given a reduction in blank sailings. Additionally, vessel loading lead times have improved. |
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To the U.S. West Coast: Capacity is growing increasingly constrained on feeder services connecting Indian subcontinent cargo to mainline services. |
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Rates are increasing due to increased fuel costs. |
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Capacity remains severely constrained as the ongoing Middle East conflict continues to disrupt major Gulf transit hubs. With a significant portion of Europe-bound cargo relying on Middle Eastern carrier connections, shippers are facing backlogs of up to 5 days on key lanes. |
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Fuel and war risk surcharges are being adjusted weekly. All quotes must be revalidated within a 48-hour window. |
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Rate levels remain stable compared to last week. |
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Shippers are advised to book with at least 7 days of lead time. Splitting larger shipments into smaller batches can help increase the probability of uplift. |
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Bangladesh and Sri Lanka: |
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Faced with ocean freight delays of 14 to 20 days due to vessel diversions around Africa, garment exporters, tea producers, and Fast-Moving Consumer Goods (FMCG) shippers are shifting to air freight to meet deadlines for major brands. This modal shift is compounding existing capacity constraints on the air side. |
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Carrier options are limited. Reliability concerns among connecting carriers in the region are driving an ongoing space crunch and elevated rate levels. |
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Across both the Trans-Pacific Eastbound and Far East Westbound markets, demand is weakening and capacity is easing. |
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Carriers are facing higher fuel costs and attempting to raise prices, but soft market conditions are preventing rate increases. Rates are expected to remain stable or decline slightly in the near term. |
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Capacity remains tight, with limited availability. |
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Demand is strong, driven by both ecommerce and general cargo volumes. |
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Overall rate levels remain stable week over week. |
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Rates on Trans-Pacific Eastbound lanes have remained elevated over the past several weeks and are expected to continue rising in the near term, driven by recently announced fuel surcharge increases in early April. |
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Capacity is tightening as carriers reduce flight frequency amid rising jet fuel costs. |
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Demand remains firm and is expected to increase as market conditions continue to tighten. |
| • |
Post-Eid demand is driving significant hub congestion, resulting in extended transit times for the U.S. and EU sectors. |
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Rates remain high and volatile due to the ongoing Middle East conflict and rising fuel costs. |
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Shippers are advised to book at least 7 days in advance to secure capacity. |
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Severe capacity constraints persist, compounded by carrier backlogs driven by the Middle East conflict. |
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While some carriers have resumed operations in the region, flights are not yet operating daily, which continues to limit available space. |
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Premium rate levels persist, and fuel surcharges are increasing. |
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Road restrictions were lifted last weekend, and inland trucking operations have returned to normal. |
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Shippers are advised to provide booking forecasts at least 7 to 10 days in advance. |
(Source: Flexport)
Please reach out to your account representative for details on any impacts on your shipments.
Transit time increased from China to the U.S. East Coast, and decreased from China to the U.S. West Coast and from China to North Europe.
Week to April 6, 2026
Transit time decreased from 41 to 36.4 days from China to the U.S. West Coast; increased from 55.6 to 58.6 days from China to the U.S. East Coast; and decreased from 61.5 to 60.9 days from China to North Europe.
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