CFI gets dairy shipments done!

By Todd Patrick :: August 28, 2020

The USTR has revised the Section 301 duties levied against the EU for illegal subsidies granted to Airbus (Effective September 1, 2020). At this juncture, the WTO has not finalized the resolution concerning the illegal subsidies between the US and Boeing, but it the revised list from the USTR against the EU include specialty food items such as olives, non-cow’s milk cheeses, jellies and jams, shellfish and mollusks, cookies and specialty olive oil and other jarred fats for cooking.  Based on the illegal subsidies, the WTO determined the US can levy up to $7.5 billion in tariffs to make up for it. The US has chosen a handful of aircraft parts to make up that shortfall, but also added food items, clothing & textiles, metal works, produce and other items. Thus, making specialty food items more attractive in the European market. Especially, cheese.

Dairy exports from the US to Asia are on an upswing and it has been one of the few ocean lanes that have not been disrupted. As of May, diary exports are up 10% over 2019, by June that increase was 28% and demand isn’t slowing down.  The demand for dairy and other perishable shipments is leading to an equipment crunch and reduced capacity much the same way it happened earlier in the year when forecasts called for blank sailings, but there was no reduction in demand to warrant it. Dairy shipments are going to need equipment, experienced service, comprehension of documentation requirements, and expert routing to mitigate any disruptions/inconsistencies in the respective supply chain.

CFI is the largest U.S. perishable provider and that level of excellence allows us the ability to access refrigerated equipment in tight markets and secure carrier space with our contracted partners. Being a part of Kuehne + Nagel assists give us the global leverage present cost-effective reefer container solutions. A food company trader, distributor, or importer can have the support from the biggest while still getting the attention of a dedicated customer service team who uniquely understands your needs. Moreover, has the experience to offer your organization the most cost-effective and transparent solutions for all your perishable needs.

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