Global Logistics Update

BIS Proposes Section 232 Tariffs on Cables, Cranes, and Other Metal Goods, Comments Due Aug. 27; Strait of Hormuz Toll-Free Window Set to Expire Aug. 17

Updates from the global supply chain and logistics world | August 06, 2026

Trends to Watch

Talking Tariffs

• BIS Proposes New Section 232 Inclusions for Cables, Cranes, and Other Copper, Steel, or Aluminum Goods: The Bureau of Industry and Security (BIS) published a Federal Register notice proposing to add a new batch of products to Section 232 tariff coverage, generally at 25% but 15% for cranes and agricultural machinery.

  • The list spans aluminum powder, brass-wind instruments, welding machine parts, floor safes, fire extinguishers, heat exchanger and hydraulic engine parts, mobile cranes and lifting frames, several trailer categories, and filled steel containers for certain chemicals.
  • Electric conductor cables stand out as the category likely to see the broadest impact, since duties would apply to the value of the cable itself.
  • Public comments are due to BIS within 21 days of publication, August 27th 2026.
  • Flexport's trade compliance team has flagged that a few of the listed HTSUS codes look like errors or duplicates. Two of them already carry 25% Section 232 aluminum-derivative tariffs dating back to April 6, so importers should verify each code against their own product lines rather than assume the whole list is net-new exposure. The Flexport Tariff Simulator can help confirm which codes actually change your landed cost.

• Two Rate Changes Worth Tracking: Quartz Surface Products and U.K. Pharma: A pair of narrower actions adjusted duty rates for specific products and countries this week.

  • The White House issued a Section 201 action in late July aimed at shielding domestic quartz surface product manufacturers from import competition. The specific tariff mechanics haven't been finalized in trade systems yet, so importers of this commodity should expect more detail soon rather than assume current rates hold.
  • Affected HTS codes are 6810.99.0020, 6810.99.0040, and 7020.00.6000 under this proposed Section 201 action. Within the quota, tariffs will start at 25 percent in year one and gradually decrease to 23 percent, 21 percent, and 19 percent in years two through four, respectively. For imports exceeding the quota, tariffs will begin at 50 percent in year one and step down slightly each year to 49 percent, 48 percent, and 47 percent by year four.
  • Separately, the duty on patented pharmaceuticals from the United Kingdom dropped from 10% to 0%, effective July 31.

• Section 301 Forced-Labor Tariffs Draw a New State Lawsuit as China Responds: Opposition to the Section 301 forced-labor tariffs kept building on two fronts this week.

  • Oregon and several other states filed a new complaint challenging the tariffs, adding government plaintiffs to the private company suits already working through the Court of International Trade.
  • China unveiled its own countermeasures against the U.S., citing both the forced-labor tariff actions and recent FCC restrictions as its rationale.

• Enforcement Roundup: A $5.15 Million Evasion Penalty and Rising CTPAT/UFLPA Scrutiny: Several enforcement-side developments this week point to tighter scrutiny across supply chains.

  • A Taiwanese LED manufacturer agreed to pay $5.15 million to resolve allegations that it ran a tariff-evasion scheme.

• CBP, FDA, and Other Agency Updates: Several agencies published routine but relevant updates this week.

  • The Food and Drug Administration (FDA) will close its 2027 Voluntary Qualified Importer Program (VQIP) application window on Sept. 1. Importers who want expedited entry for the coming year should apply well before the deadline.
  • FDA also issued new and revised import alerts on Aug. 4.
  • USDA's Animal and Plant Health Inspection Service (APHIS) reminded users it has moved to electronic-only payments.

Ocean Market News

• Ocean market news:
  • Two separate disruptions remain active in the market this week, each with its own cause and trade impact.
  • The Strait of Hormuz remains effectively closed to normal commercial transit, a condition in place since late February. Daily transits have run near 10 vessels against a typical rate near 88 a day, and a tanker was struck while transiting the strait's southern corridor on August 1.
  • Global schedule reliability came in at 63.1% for the second quarter, with average vessel delays reaching 5.49 days — the worst quarterly reading since 2022 — driven largely by the ongoing Middle East disruptions.

TRANS-PACIFIC EASTBOUND (TPEB)

• Capacity and Demand:

  • Capacity has recovered and stabilized slightly above the July average, now around 88–90%. Recent vessel schedule disruptions east of China — caused by typhoon activity — are leading to missed connections and port congestion at certain origins.
  • Demand forecast remains stable and strong through August, particularly to the East Coast and Gulf.

• Freight Rates:

  • The August 1st rate increase has been successfully implemented and is holding, supported by sustained high demand.

FAR EAST WESTBOUND (FEWB)

• Capacity and Demand:
  • Blank sailing activity eased to roughly 2.2% this week, down sharply from about 11.8% last week. Forward data show a further step down to 0% next week.

TRANS-ATLANTIC WESTBOUND (TAWB)

• Capacity and Demand:
  • Blank sailings dropped to 0% this week (down from ~16.0%), but forward data indicates a sharp jump to ~17.1% next week.

INDIAN SUBCONTINENT TO NORTH AMERICA (ISC)

• Capacity and Demand:
  • The continued streak of increased demand since May against the backdrop of significant reduction in supply on the corridor has exacerbated the space constraints experienced during this peak season.

North America Vessel Dwell Times

Ocean Timeliness Indicator

Transit time increased from China to the U.S. West Coast, increased from China to the U.S. East Coast, and increased from China to North Europe.

About the Author

August 6, 2026

(Source: Flexport)