The American Forest & Paper Association (AF&PA) President and CEO Heidi Brock, representing U.S. pulp, tissue, paper, and paper-based packaging manufacturers, today issued the following statement: “AF&PA appreciates the U.S. government’s engagement in securing an initial EU trade deal that will advance reciprocal, fair and balanced trade between our two economies. As non-tariff trade barrier negotiations continue – and to further support U.S. forest product producers' ability to continue shipping over $3.5 billion in essential products to the EU – we urge the Administration to secure a U.S. exemption from the EU Deforestation Regulation (EUDR). “As recognized by USTR’s April National Trade Estimate Report, EUDR in its current form fails to recognize the realities of robust sustainable forest management (SFM) systems in the United States. Although the United States is not a source of global deforestation concerns, it is subject to many of the same burdensome obligations as countries with high deforestation risks. EUDR’s key compliance barrier, strict geolocation traceability, constitutes a significant non-tariff trade barrier, especially given the nature of U.S. pulp & paper supply chains.

Ocean container spot rates on the benchmark Far East-U.S. route moderated their steep declines that saw an average 53% drop since June to destinations on the East and West coasts. The latest update from shipping consultant Xeneta has market average spot rates from the Far East to U.S. West Coast at $2,098 per forty foot equivalent unit (FEU), down 3% from July 31, and $3,311 to the East Coast, 9% lower in that time. Those declines compared to a 62% decrease to the West Coast since June 1, and 53% to the East Coast since June 15, after falling a further 9% since June 31, to $2,015 per FEU. “Carriers have taken action to arrest the plummeting average spot rates on the trans-Pacific trade to the U.S. West Coast through strong capacity management, with blanked sailings now almost double the level in mid-June,” said Peter Sand, Xeneta chief analyst, in a research note. “The dramatic spot rate decline has slowed in August so the stronger capacity management is having some success for carriers, but this is limited and not enough to stop the downward trajectory in coming months.