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France and Britain are hoping that a 'taxi-boat' plan for migrants will help slow the record Channel crossings
A dinghy was seen in the early morning hours of this week motoring along a large beach in northern France. It stopped every few hundred meters to pick up migrants heading for Britain. Four French police chased the migrants, but they failed to catch them before they reached the water's edge. The dinghy was soon chugging along the sea with around 70 people aboard, adding to the record number of migrants who have crossed the Channel in this year. Right-wing opponents of British Prime Minister Keir starmer have taken the data and reminded him that he had promised to "smash the trafficking groups". France and Britain are hoping to announce measures next week at their summit that will allow French police officers to intercept these 'taxi boat's - a brand new phenomenon – up to 300 meters (yards) away from the shore, rather than only when lives are in danger as they do now. The police, migrants and activists interviewed were skeptical that such a plan could work. "I don't think this will ever be done," said Julien Soir a representative of the police union in Lille, a city located in northern France. "Getting it running is impossible." He claimed that the police had already been stretched to cover 180 km (1112 miles) and lacked the training and equipment needed for seaborne missions. The police also worry about drowning in the event that they drop heavy equipment into the water. They may also be held personally liable if migrants are killed or injured while on an intervention. Angele Vettorello is a coordinator for the Utopia 56 charity, located in Calais. She said that despite increased French police patrolling the beaches, and even using drones sponsored by Britain, numbers are still increasing. She said that the proposed measures will only make an already dangerous crossing more dangerous - 73 migrants lost their lives last year while navigating one of the busiest shipping routes in the world. She said that if implemented, the plan would "lead even more deaths... more distress." Right-Wing RISE In polls, the influx of migrants helped Nigel Farage’s Reform UK to surpass Starmer’s Labour Party. Farage, who is a long-time immigration hardliner and right-wing populist, proposed that the Navy intercept migrant boats and bring them back to France. Lawyers claim that this would only be possible if France consented. This year, nearly 20,000 asylum seekers arrived in Britain by small boat. That's a 50% rise compared to 2024. The French and British authorities attribute the increase to unusually warm weather. Peter Walsh from Oxford University’s Migration Observatory said that maritime interception could stop more migrants, but it would not have any impact on the long-term trends driving the surge of migrants, such as multiple conflicts and Britain’s allure to English-speaking people. Britain wants to also negotiate a return agreement with France that it had before leaving the European Union. In a filthy camp of migrants near Dunkirk I spoke to several migrants unaware of this new proposal. They said that it would not stop them from crossing. Israrullah, a 26-year-old Afghan man, left Afghanistan in 2021 when the Taliban became angry about his family's involvement with the U.S. Army. He failed to cross the border three times. Twice he was stopped and once, his boat had a problem. Lodin yearned to work in a UK fulfillment warehouse. He would do anything to get there. He said, "We don't fear death." "I must reach my destination." Nisarahmad, an Afghani, was a migrant for almost his entire adult life. He left his native region of Nangarhar, four years prior, and had lived in the city ever since. He made two unsuccessful attempts to cross the border, both of which were foiled by the police. He said, "I will try until I succeed." I've been on many dangerous roads. "I will pass through this one as well." (Additional reporting from Mohammad Yunus Yawar, in Kabul, Marco Trujillo and Manuel Ausloos in Calais, Abdul Saboor in London, Gonzalo fuentes in Calais, Michael Holden in London, Richard Lough, Philippa Fletcher, and Philippa Lough)
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French air traffic controllers strike for second day disrupts flights
The strike of French air traffic controllers, now in its second day, caused further flight delays and cancelations at the beginning of Europe's busy travel season. The civil aviation agency DGAC has told airlines that 40% of flights will be cancelled at three of Paris' main airports this Friday due to the strike. Air traffic controllers claim the strike is caused by a lack of staff and outdated equipment. DGAC also said that up to half of the flights at France's airports in other regions, mainly in the south, had been affected. The French Transport Minister Philippe Tabarot deemed the strike as unacceptable. In an interview with CNews, he stated that the goal was to upset as many people possible. DGAC warns that even with cancellations, passengers may still experience delays and disruptions. Airlines for Europe (A4E), a lobby group, announced late Thursday that 1,500 flight cancellations had occurred during the two-day walkout, affecting 300,00 passengers and causing delays. (Reporting and editing by Makini brice)
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Alstom wins 2 billion euro deal from New York Metropolitan Transportation Authority
Alstom, a French train manufacturer, announced on Friday that it received a $2.45 billion order from the New York Metropolitan Transportation Authority for M-9A railcars to be supplied to the Long Island Rail Road (LIRR) and Metro-North Railroad. Alstom announced that the contract, which MTA announced in June, would be booked during the second quarter 2025/26 fiscal years. MTA announced last month that Alstom pilot railcars would be delivered by 2029, and will enter service on Long Island Rail Road as passenger cars in 2030. It added that all 316 railcars included in this order would be delivered by the year 2032. There are 160 cars for Long Island Rail Road, and 156 cars for Metro-North Railroad. MTA Chairperson and CEO Janno Lieber stated in June that this deal was a first step in the agency’s plan to buy nearly 2,000 railcars in its $10.9 billion capital program.
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Air France-KLM acquires majority stake in Scandinavian Airlines SAS
Air France-KLM announced on Friday that it intends to increase its stake in Scandinavian Airlines SAS from 19.9% to 60.5% by acquiring stakes currently held by Castlelake and Lind Invest, the top shareholders. Air France-KLM stated that the purchase is subject to regulatory approvals and should close in the second quarter of 2026. The company said that the value of the investment will be determined by closing based on SAS’s most recent financial performance including EBITDA, net debt and other metrics. The Scandinavian carrier welcomed the announcement and called it a "defining" moment that marked Air-France KLM’s commitment to strengthening SAS. Anko Van der Werff, SAS CEO, said: "It will not only bring stability but also deeper industrial integration as well as the full support of one of the leading airline groups in the world." Together, we'll be better positioned for greater value to customers, colleagues and the region. SAS has said that it will continue to invest in the fleet and network. Air France-KLM's CEO Ben Smith said in March that his company is looking to increase its stake in SAS as the airline was meeting all the required milestones. This included integration into SkyTeam, an alliance of airlines which Air France KLM also belongs to. Since summer 2024, the two carriers have had a successful commercial relationship. Air France-KLM said that a control of SAS would enable it to expand on the Scandinavian market, and create value for its shareholders. Smith said that "SAS has performed well following their successful restructuring and we're confident the airline will continue to grow as it is integrated deeper into the Air France-KLM Group." Executives are looking to consolidate the fragmented European airline industry in order to compete against U.S. and Middle Eastern competitors. SAS had 138 aircraft on service last year and transported more than 25 millions passengers, generating revenues in excess of 4.1 billion euro. The group will have the majority of the seats in the SAS board, while the Danish government will retain its 26,4% stake and its seats. Reporting by Dominique Patton and Bart Meijer; Editing and production by Margueritachoy and Lincoln Feast.
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The Indian Rupee-Trimmed Fed Rate Cut Bets Pull Forward Premiums Off One-Month Peak
The Indian rupee, and the dollar-rupee premiums fell from their one-month highs on Friday. A stronger-than-expected U.S. employment report reduced bets on Federal Reserve rate reductions. Traders were also watching a looming U.S. trade deadline. The rupee fell to 85.50 near the start of trading after hitting a peak for one month on Thursday. It then pared losses and quoted at 85.33, little changed. The rupee was helped by a drop in the dollar index after a previous rise. Asian currencies were mostly in choppy territory. The implied yield on the dollar-rupee 1-year note fell by 5 basis points, to 2.02%. Traders noted that the near forward premiums may also be under downward pressure, as the central bank has not increased the amount of liquidity they intend to withdraw from banks. Many market participants were surprised by this, as they had anticipated a higher quantum due to an increased surplus. The U.S. employment data caused traders to almost wipe out bets on a Fed cut in July. Odds of a cut in September dropped to less than 75%, from nearly 94% prior to the data. The market is waiting for tariff news, said a Mumbai-based trader. He was referring to a deadline of July 9 for countries to reach trade agreements with the U.S. Bloomberg Television reported that the U.S. Treasury secretary Scott Bessent predicted a "flurry of" trade agreements to be announced before the deadline. DBS stated in a report that it is possible to reduce the umbrella tariff on India from the current 10% to a baseline rate of 10% by taking cues and agreements with other countries. As part of the "Liberation Day", reciprocal tariffs on April 2, U.S. president Donald Trump threatened to impose a duty of 26% on Indian goods. This was temporarily reduced to 10% in order to buy more time for negotiations. (Reporting and editing by Jaspreet K. Kalra)
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Air France-KLM acquires majority stake in SAS
Air France-KLM announced on Friday that it intends to increase its stake of Scandinavian airline SAS from 19.9% to 60.5% by acquiring stakes currently held by Castlelake and Lind Invest, the top shareholders. It said that the purchase is subject to receiving the necessary regulatory approvals and should close in the second quarter of 2026. The company said that the value of the investment will be determined by closing, and will be based on SAS’s most recent financial performance including EBITDA, net debt, and other factors. Air France-KLM's CEO Ben Smith said in March that his company is looking to increase its stake in SAS as the airline was meeting all the required milestones. This included integration into SkyTeam, an alliance of airlines which Air France KLM also belongs. Since summer 2024, the two carriers have had a successful commercial relationship. Air France-KLM said that a control of SAS would enable it to expand on the Scandinavian market, and create value for its shareholders. Smith said that "SAS has performed well following their successful restructuring and we're confident the airline will continue to grow as it is integrated deeper into the Air France-KLM Group." Executives are looking to consolidate the fragmented European airline industry in order to compete against U.S. and Middle Eastern competitors. SAS had 138 aircraft on service last year and transported more than 25 millions passengers, generating revenues in excess of 4.1 billion euro. The group will have the majority of the seats in the SAS board, while the Danish government retains its 26,4% stake and its seat on the board. (Reporting and Editing by Marguerita Chy)
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Air shipments from China to the US are disrupted by the end of the tax-free loophole.
Trade groups and analysts reported that the volume of air cargo shipments from Asia has decreased by double-digits since early May when the U.S. canceled a tax exemption for low value packages coming from China. Data from the International Air Transport Association showed that air cargo demand from Asia into North America fell 10.7% in May, compared to the same month one year ago. This "shows the dampening effects of changing U.S. Trade Policies," said IATA Director-General Willie Walsh in a Monday report. Tax exemptions for shipments under $800, often sent via air to U.S. clients of low-cost online platforms like Shein and PDD Temu, are known as de minimis or "too small to matter". After a trade agreement between the U.S., China and China in mid-May, however, these shipments from China and Hong Kong are taxed as low as 30 percent. The two sides continue to negotiate trade. This week, the U.S. relaxed export restrictions to China on software, ethane, and aerospace, in advance of the U.S. reimposing a wide range of tariffs that will target multiple countries on July 9. Industry experts reported that the volume of low value e-commerce shipping from China to America in May was particularly sharply down. Air cargo consultancy Aevean estimates that such shipments decreased by 43% from the previous month in May, but increased to other major export markets, including Europe and South-East Asia. Marco Bloemen said that it is unclear whether the dramatic drop will continue. Businesses had expected the de minimis stop and the tariff rate has been lowered in the middle of the month. Will those ecommerce players return to the U.S., now that they pay 30% duty instead of zero duty? Bloemen stated. He said that companies turning to other markets because of the uncertainty surrounding U.S. Trade Policy is likely to have a negative impact on shipment volumes. "We expect that trend to continue. More e-commerce to Europe is expected to take place in June, as well as to other markets such Latin America." Air cargo consultancy Rotate stated that e-commerce platforms are focusing on alternative markets to replace the lost U.S. market, with significant growth in exports to Europe and Asia-Pacific. Shein and PDD didn't immediately respond to requests for comment. CARGO CUTBACKS As a result, the cargo business of airlines has seen a boost as low-value ecommerce from Asia is taking a larger share of air freight worldwide. Aevean data shows that in 2018, only 5% of the goods from China were shipped to the U.S. via air. Industry experts say that as demand for trans-Pacific freighter flights fell in May due to the decline of Asia-to-U.S. routes, airlines began moving them elsewhere. They said that some of this demand is now returning as companies are taking advantage of tariff pauses in the U.S.-a number of other countries. However, flight frequencies have been reduced. Cirrus Global advisors, an e-commerce consulting firm, said that some of the bigger players who were chartering 3 flights per week had reduced this to 2. Rotate data revealed that direct freighter capacity between China & the U.S. was 11% less in June compared to the previous month, erasing the growth of capacity in the last year. Dimerco Express, a freight forwarder specializing in Asia, estimated that its online bookings fell by 50% between May and June. In a recent report, the company said that scheduled freighter flights are still being cancelled. The de minimis regulation, which dates back to 1938, was criticized by American legislators as a loophole allowing Chinese products to avoid U.S. tariffs, and allowing illegal drugs and precursors used to create opioid fentanyl, to enter the U.S. without being screened.
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Petroecuador, the state oil company of Ecuador, declares force majeure in its operations
The head of Ecuador's state oil company Petroecuador announced on Thursday that all operations, including crude imports, were suspended after two pipelines important to the company's operation stopped pumping. Heavy rains in Napo, a province of the Amazonian region, have accelerated erosion and threatened infrastructure. The SOTE and OCP pipelines owned by the state suspended pumping this week. Leonard Bruns, Petroecuador's chief executive officer, said: "Force majeure was declared to allow (Petroecuador), to act with all of the necessary tools." Due to the suspension of transport operations, the company said that it has also begun closing down oil wells. According to a report released on Thursday by Ecuador's Hydrocarbons Regulating and Control Agency, the country's crude oil production has fallen about 133,000 barrels per daily (bpd). Since 2020, erosion along the Coca River has spread, damaging oil infrastructure, roads, and now the Coca Codo sinclair hydroelectric facility, the largest one in Ecuador. The authorities said that temporary bypasses on both pipelines are being constructed to resume operation, and studies have been approved for permanent rerouting in order to avoid the affected area. (Reporting and writing by Alexandra Valencia, Editing by Brendan O'Boyle & Kylie Madry; Writing by Natalia Siniawski)
US importers use brokers to negotiate Trump's tariffs at a price
U.S. importers rely on customs brokers more and more to keep up with the ever-changing policies of President Donald Trump. The industry said that the booming demand for assistance in processing foreign products has increased the cost of these services, which adds another cost to tariffs.
Customs brokerages, which were until recently an unrecognized branch of the import industry, now handle all the paperwork required to process shipments, calculate tariff bills, and calculate the paperwork. Brokers interviewed by said they were raising their fees. Major logistics companies like Memphis, Tennessee based FedEx, and Germany based DHL have also added staff to their customs teams.
Customs brokerage is estimated by market research firms to be a $5 billion dollar industry in the United States. Although hiring a customs broker is not mandatory, the complexity of U.S. tariffs & regulations is driving more importers into the market.
JD Gonzalez, an independent broker based in Laredo, Texas, answers dozens of client questions every day. Clients are concerned about what they might owe U.S. Customs and Border Protection and are unsure whether or not to proceed with shipments.
Brokers spend more time than ever on customs forms, and in some cases have implemented new IT systems.
"With all of the new information that we need to process, we've had to throw out some of the automated processes we used, so we've got more work to be done," said JD Gonzales, who is president of the custom brokerage trade association NCBFAA.
This trend is part a larger wave of corporate efforts aimed at bolstering trade compliance operations. As of Wednesday, major companies such as Nike, Amazon, and Lowe's had posted job listings for trade and customs specialists.
Nike posted a job on its careers website seeking a "lead", who would "play an important role in shaping our trade compliance framework," the post said. Amazon's careers site listed at least ten U.S. Customs Brokerage jobs. Lowe's listed three.
Nike, Amazon and Lowe's have not responded to our requests for comment.
Fees Increased
Brokers often base their charges on the number codes they have to enter in order to classify a shipment. These line items, also known as harmonized Tariff Schedule Codes, help border officials to distinguish between car parts and children's toys. They can then determine the correct tariff rates.
Before Trump's frenetic policies on tariffs, fees were anywhere from $4 to $7 for each code. Gonzalez stated that the additional costs brokers have incurred while ramping up systems to deal with the tariff changes has led to some increasing fees by $1-$5 per code.
Gonzalez claimed that he had raised fees only "nominally," but Steve Bozicevic of A&A Customs Brokers, based in Seattle and Vancouver said his company increased the fee by $3 for each product type imported to the U.S. due to merchandise being subjected "tariff stacking," which is a term used when an item is subjected multiple tariffs.
Bozicevic stated that "we raised the rates for U.S. due to the added complexity." He said that the company hasn't raised rates on imports to Canada, because "there is no new complexity."
United Parcel Service increased brokerage rates between $3.75 to $50 per import entry in December, depending on country of origin. UPS's spokesperson said that the move was not related to tariff changes and was part of a general rate increase. FedEx's Logistics arm increased its customs brokerage base rates by 4%, according to the company spokesperson.
The larger logistics companies that offer brokerage services as part of their shipping offerings are also increasing staff. DHL's DHL Express shipping division claims that the company has increased its U.S. Customs Entry team headcount by 30% since February.
According to the LinkedIn Jobs page, FedEx has more than 40 job openings in its customs teams and trade departments, most of which are based in America. UPS has 10 positions in the U.S., according to their jobs website.
FedEx "adjusts our network to meet the demand" of an evolving tariff landscape. "This includes hiring additional customs broker roles," said the spokesperson. UPS declined to comment about the job listings.
Brokers, trade lawyers, and other professionals in the trade industry say that historically, tariff changes were less frequent. They also came with a lead time of weeks, which allowed brokers to prepare and give logistical feedback to CBP.
Compare this to Trump's sudden announcement of 50% steel and aluminum tariffs last week, forcing U.S. Customs Department to publish an official guide just hours before midnight.
"Many customs brokers clear shipments in advance, and then you need to go back and retroactively fix it," said Miami's Ralph De La Rosa. His father founded Imperial Freight Brokers 54 years ago.
Brokers who did not raise their fees say that the increase in HTS codes is making services more expensive.
Importers reduced shipments after Trump's announcement of massive tariffs on April 2. They had frontloaded purchases earlier in year to get ahead the expected increase in duties.
According to the U.S. Bureau of Economic Analysis, imports of consumer products, including cell phones and household items, fell $68.9 Billion to $277.9 Billion in April compared to a month earlier. Trump announced new tariffs for steel and aluminum in the month of June, and threatened to impose tariffs of 50% on European Union imports in May.
A federal appellate court ruled on Tuesday that tariffs could remain in place while the appeals process is underway, after a US trade court ruled the president had overstepped his executive power and blocked the duties. The appellate court scheduled arguments for the 31st of July. Reporting by Arriana McCLymore in New York and Nicholas Brown, editing by Lisa Jucca and David Gaffen, Andrea Ricci
(source: Reuters)