Month in Review – July 2026

Maritime

July 3: China Urges ‘Unimpeded Passage’ of Hormuz as Fee Chatter Mounts – gCaptain

China called for the unhindered flow of shipping through the Strait of Hormuz, comments that come as leading European powers are apparently accepting that vessels will have to pay fees to Iran and Oman.

“Resuming safe and unimpeded passage in the strait at an early date serves the interests of all parties,” Foreign Ministry spokesman Guo Jiakun said on July 3.

Bloomberg News reported earlier that people familiar with the thinking in Europe described the prospect of some sort of service fee in the aftermath of the U.S. and Israeli war with Iran as a given. Privately, some Gulf Arab officials hold the same view, though this is not necessarily the formal position of their governments, said the people, who asked not to be identified discussing private deliberations.

It is unclear what type or amount of fees any nation would be willing to accept. The U.S. and Gulf Arab countries continue to insist Iran and Oman cannot impose charges of any kind for Hormuz. Their concerns include the risk it creates a precedent for other countries to impose fees on different waterways.

July 6: Israeli Defence Ministry Comes Out Against Sale of Zim to Hapag-Lloyd – The Maritime Executive

Opposition continues to mount in Israel to the agreed sale of Zim to Hapag-Lloyd and the formation of a smaller domestic shipping company by an investment fund. Israel’s Defence Ministry issued a statement late on July 5 saying the deal does not adequately safeguard the security interests of Israel, while media reports said Prime Minister Benjamin Netanyahu said the sale is not currently on the government’s agenda.

Israel’s Defence Ministry Director of Security Almog Cohen conducted an extensive review of the transaction and issued the opinion, which was adopted by the Defence Ministry. According to the report by the Israeli media outlet Calcalist, the Defence Ministry’s concerns centre on the new Zim, which it sees as a limited shipping company. It believes the new company’s routes would be confined to the Mediterranean, significantly reducing access to the United States and the Far East.

Israel received military equipment and support from the United States and has developed supply relationships in the Far East. The review raised concerns about maintaining these supply chains and the “implications for Israel’s maritime independence.” It notes that, during the war in Gaza, Israel faced shipping boycotts, sanctions and trade restrictions, and without Zim, maintaining supply chains could be a problem.

July 9: Report: One-Third of World’s Busiest Ports Face High Disruption Risk – Supply Chain 24/7

About one-third of the world’s busiest ports and airports are exposed to significant disruption risks, highlighting how quickly supply chains can be thrown off course by conflict, severe weather and domestic unrest, according to a new report from Verisk Maplecroft.

The report found that 176 of the world’s 500 busiest ports score as high or very high risk in at least one of three categories: geopolitical conflict, environmental threats or domestic security. It also found that geopolitical conflict poses a high or very high risk at 23.6% of those ports.

The findings come as supply chains continue to navigate disruption across several major trade routes. Tensions around the Strait of Hormuz have raised concerns about shipping through the Middle East, while companies are also monitoring other critical chokepoints, including the Panama Canal, the Taiwan Strait, the Strait of Malacca, and the Red Sea.

Rather than focusing only on well-known shipping bottlenecks, Verisk Maplecroft argues companies should pay closer attention to the ports and airports that connect global supply chains every day.

July 10: Merchant Fleet Trapped West of Hormuz Drops Below 700 Vessels – American Journal of Transportation

AXSMarine AIS-derived data currently detects 689 merchant vessels west of the Strait of Hormuz, inside the Persian / Arabian Gulf, down from 1,061 vessels in early March. This is the first time since the start of the conflict that the tracked fleet inside the Gulf has fallen below 700 vessels, representing a decline of 372 vessels, or around 35%, from the early March count.

Tankers remain the largest exposed segment, with 332 vessels currently detected in the region. Dry bulk and MPP vessels form the second-largest group, with 201 vessels in total.

AXSMarine also detects 49 gas carriers, 70 container ships and 37 other vessel types, such as ro-ro and passenger ships, round out the picture.

July 13: Key European Shipping Corridor Hit by River and Rail Freight ‘Double Whammy’ – American Journal of Transportation

Sharply falling water levels on the Rhine in Germany have raised fears of a significant shortage in barge capacity on one of Europe’s key shipping corridors, which could trigger serious disruption to supply chains.

It carries some 300 million tons of bulk and containerized goods on a yearly basis, connecting the major ports of Rotterdam and Antwerp, in the Netherlands and Belgium respectively, with Germany’s industrial heartlands.

Western Europe recorded its hottest-ever temperatures in June and is currently experiencing its third heatwave in the space of six weeks. Prolonged periods of extreme heat – around 104F – and near-zero rainfall, have resulted in drought conditions in many areas. And the Rhine, Europe’s single-most important inland waterway artery, particularly the middle section flowing through Germany, has not been spared.

When water levels recede, barges are forced to reduce the amount of cargo they can transport, driving up freight rates and limiting volumes of a broad range of commodities ranging from coal, steel, food and automotive parts. In the summer of 2022, a drought almost brought commercial traffic on the Rhine to a halt.

July 13: Port of Vancouver Picks Contractor to Build $3.5-Billion Roberts Bank Terminal 2 – The Province

The Port of Vancouver has picked its preferred contractor to build the central part of the massive, $3-billion Roberts Bank Terminal 2 project that will expand the West Coast’s container capacity by 30 percent.

The Vancouver Fraser Port Authority said it has selected a consortium under the name TerraMarine as “the preferred proponent” to build the new 1.3-square-kilometre artificial island and wharf components of the Terminal 2 project.

The selection of TerraMarine from a short list of three qualified bidders touches off a timeline for its consortium to start negotiations with the port authority, and work with First Nations and regulators on a construction plan aimed at establishing costs, a schedule and subcontracting opportunities.

July 16: Canada’s Minister of Transport Refers Port of Vancouver Gateway Strategy to Major Projects Office – Government of Canada press release

Minister of Transport Steven MacKinnon announced the referral of the Port of Vancouver Gateway Strategy to the Major Projects Office (MPO). This strategy and associated pillars are the type of nation-building infrastructure projects the Building Canada Act aims to urgently advance to diversify and grow trade capacity.

The Gateway Strategy will focus on four key pillars to support capacity growth at the port:

1. Roberts Bank Terminal 2
2. Land use and infrastructure for bulk terminals
3. Rail infrastructure optimization and expansion
4. Environmental protections

July 20: Port of Vancouver Set to Expand Through Major Terminal Development Opportunity – Maritime Magazine

The Vancouver Fraser Port Authority announced it is looking for an operator for its Fraser Wharves terminal site in Richmond, as part of work to expand trade capacity at the Port of Vancouver in support of federal government efforts to double exports to non-U.S. markets over the next decade.

The 40-acre port terminal site is the first major terminal opportunity at Canada’s largest port in a decade, offering potential operators a brownfield site with existing marine, rail and road connections.

The port authority is engaged with the federal Major Projects Office on this site as part of the Government of Canada’s Port of Vancouver Gateway Strategy. The Major Projects Office may support the port authority with this process to ensure the project is efficiently advanced, while respecting Indigenous rights and safeguarding the environment.

July 20: Houthis Threaten Saudi Shipping with New Naval Blockade – gCaptain

Yemen’s Iran-aligned Houthis said on July 20 they were imposing a naval blockade on Saudi Arabia, a move that threatens to escalate the conflict in the region and disrupt global energy supply and trade beyond the Gulf.

The Houthis’ armed forces in a statement said they were declaring “a maritime embargo against the criminal Saudi enemy, based on the equation of ‘an eye for an eye’, effective immediately.” They said the decision was in response to what they called “an unjust and oppressive siege” imposed on Yemen by the Saudis.

The full closure of the Bab el-Mandeb strait, the southern gateway to the Red Sea, would halt Saudi oil exports to Asia and could reduce global oil supply by 7%.

July 20: Danube Water Levels Reach Lowest in 30 Years, Hampering Farming and Shipping – Reuters

Water levels of the Danube river in Romania fell to their lowest since 1996 over the weekend, prompting irrigation restrictions for ‌farmers and partially disrupting shipping and tourism along its banks.

Waterways across Europe have been affected by prolonged heatwaves and drought this year and the average peak temperature across Western Europe on July 20 was forecast ⁠to be 26.2 degrees Celsius, 2.7 degrees above the normal high for that date, the Reuters Climate Monitor shows.

Romania’s state water-management agency said the level at the Romanian entry point of Europe’s second-longest river was 1,700 cubic metres of water per second on July 19, against a July average range of 4,700 cubic metres per second.

Reuters footage ⁠showed long stretches of exposed sand on the banks near the border with neighbouring Bulgaria, with several ferry services suspended and grain barges standing idle.

July 21: Houthis Warn All Ships Against Calling at Saudi Arabia’s Ports – gCaptain

A message from Yemen’s Houthi rebels to shipowners warned all vessels against calling at Saudi Arabian ports, shedding light on the scope of a threat that puts millions of barrels of exports from the kingdom at risk.

In an email to shipowners, the Iran-backed group makes clear that its blockade doesn’t just apply to Saudi vessels, but to all ships coming to and from Saudi ports, according to the message seen by Bloomberg. It has been months since the Houthis attacked vessels, but they reprised the threat to do so on July 20 as the conflict in the Middle East escalated.

The rebel group said it would place the embargo on Saudi ports as a result of what it says is Saudi Arabia’s siege on the Yemeni capital, Sana’a.

July 23: Marine Insurers May Ban Payments to Iran for Hormuz Transits – The Maritime Executive

Getting insured for a Strait of Hormuz transit is getting more expensive, and there are more strings attached to staying insured as well. Underwriters at Lloyd’s Market Association have come up with an additional, optional clause that can be inserted into policies for passages through the waterway; it allows the insurer to cancel the policy if it turns out that the shipowner has paid a toll to Iran. Meant to protect the insurer from compliance risks, in future it could prevent neutral shipowners from using the route through Iranian waters, where Iran does not attack shipping.

For the insurer, the hazard is clear. The Islamic Revolutionary Guard Corps (IRGC) Navy oversees Iran’s section of the strait, and the IRGC is a U.S.-designated foreign terrorist organization. The administrative transactions for passage are handled through Iran’s so-called Persian Gulf Strait Authority (PGSA), not itself part of the IRGC but still a division of Iran’s government.

Payments to the PGSA might end in the hands of the IRGC.  Any payment would be a U.S. sanctions violation, and might have other compliance ramifications as well.

For an insurer, this would be a legal risk.

Air

July 3: Airforwarders Association the Latest to Warn over IATA DAWB Changes – Air Cargo News

The Airforwarders Association (AfA) is the latest group to issue a warning over the impact of IATA’s changes to the direct air waybill (DAWB) framework.

The U.S. association has advised freight forwarders to confirm contractual arrangements with every airline and review insurance cover as the revised DAWB framework comes into effect.

The AfA said that the revised framework, which came into effect on July 1, could alter the contractual relationship between airlines, shippers and freight forwarders, “potentially leaving forwarders responsible for obligations traditionally borne by the shipper, including cargo misdeclarations, concealed dangerous goods and packaging failures.”

“Freight forwarders should not be expected to assume liability for cargo they neither own, pack nor control,” said Brandon Fried, executive director of the AfA.

July 6: Insurance Provider Encourages Freight Forwarders to Review Coverage in Light of Changes to DAWB Framework – American Journal of Transportation

Freight forwarders should take the opportunity to review their contractual arrangements and insurance protection following the introduction of the International Air Transport Association’s (IATA) revised direct air waybill (DAWB) framework, according to digital cargo insurance provider Breeze.

The company believes the revised framework has the potential to alter the allocation of legal responsibilities between airlines, shippers and freight forwarders, creating uncertainty over where liability sits and whether existing insurance arrangements remain appropriate.

“Without a doubt, this represents a significant reallocation of risk,” said Matthew Phillips, Chief Commercial Officer, Breeze.

“Liability is generally expected to follow control, and the revised framework raises legitimate questions where a freight forwarder could potentially become responsible for matters traditionally associated with the shipper or carrier. The uncertainty is increased if implementation differs between airlines, meaning forwarders may need to understand the contractual position on a carrier-by-carrier basis.”

Phillips said existing freight forwarder liability policies have traditionally been designed around risks that forwarders control, including their own errors, omissions and negligence when arranging transport, rather than obligations that sit with shippers.

If the revised contractual framework results in forwarders assuming responsibilities previously associated with shippers, insurers may review how those risks are assessed.

July 25: Advocates Hail Feds’ Rejection of Billy Bishop Airport Plan, While Trade Groups Pan It – CTV News

The federal government’s decision to halt Ontario’s plan for a major expansion of Billy Bishop airport will guard Toronto’s waterfront against serious setbacks to its revitalization, advocates say, while proponents of the project dub the move “disappointing.”

The project would involve increased pollution and “massive destruction” of the Toronto Islands after billions of dollars invested in lakefront rehabilitation over the past couple of decades, said Tim Gray, executive director of Environmental Defence.

He pointed to the nearly a kilometre of lakefill needed to build a runway and taxiways as well as the “gridlock” and aircraft emissions the additional plane traffic would cause on shore.

On July 24, federal Transport Minister Steven MacKinnon said the government is “exclusively” focused on approved safety upgrades already underway at Billy Bishop, rather than on building it out to allow jets to land. He said the conclusion was based on public consultations that garnered more than 87,000 responses.

But MacKinnon also left the door open a crack to a potential change of course in future years, framing the decision as “at this stage,” instead of as a final one.

Giles Gherson, CEO of Toronto Region Board of Trade, called the decision “disappointing.”

July 30: WestJet Flight Attendants Give 72-Hour Strike Notice, Airline Issues Lockout Notice – Global News

The union representing close to 4,400 flight attendants at WestJet says it has issued a 72-hour strike notice to the airline, to which WestJet responded with a lockout notice.

Both WestJet and CUPE Local 8125, the union representing its flight attendants, issued statements on July 30 confirming the developments as a potential strike looms this long weekend.

If a negotiated agreement on a new contract can’t be reached by August 2 at 12 am mountain time, the unionized flight attendants could walk off the job.

WestJet said it doesn’t anticipate any immediate impact to air travel, but that could change if an agreement isn’t reached by the deadline.

“These notices do not immediately impact operations or mean that a labour disruption will occur. WestJet and CUPE are still actively negotiating to reach an agreement, avoiding impact to our guests,” said WestJet.

Trucking

July 2: Ontario Warns Non-Compliant Truck Driving Schools Face Enforcement Action July 31 – TruckNews.com

Ontario truck driver training schools that failed to submit updated Class A curriculum and ministry-compliant lesson plans by July 1 are now considered non-compliant, with those remaining out of compliance by July 31 facing escalating enforcement measures, according to a Ministry of Transportation (MTO) bulletin issued June 30.

The bulletin serves as a final reminder to Driver Certification Program organizations, registered career colleges and curriculum developers to comply with the ministry’s lesson plan development requirements under the Commercial Truck Driver Training Standard (Class A).

According to the ministry, organizations that remain non-compliant as of July 31 may face immediate and escalating enforcement actions, including suspension of Driver Certification Program registered authority privileges, restrictions on enrolling new students into the entry-level training database, and restrictions preventing students from becoming eligible to complete their Class A road tests.

July 3: CTA Warns that Annual Revisions to CUSMA Threaten Investments in Trucking – Transport Routier (translated from French)

The Canadian Trucking Alliance (CTA) says the U.S. administration’s decision not to immediately approve a multi-year extension of the Canada-United States-Mexico Agreement (CUSMA) is creating uncertainty for cross-border trucking and supply chains.

In a statement released on July 2, the CTA indicated that replacing a long-term commercial framework with annual reviews creates instability for carriers who invest in equipment, fleet renewal and contracts with customers.

The CTA argues that freight carriers depend on a stable long-term policy framework to justify their capital investments, and that an annual review process could delay rolling stock purchases, complicate planning and increase costs across the supply chain.

July 9: Quebec to Require Road Tests for Some Ontario-Trained Class 1 Drivers – TruckNews.com

The Quebec government has introduced new measures aimed at improving heavy truck safety, including mandatory road tests for some Ontario commercial drivers seeking to exchange their Class 1 licences for Quebec equivalents.

Transport Minister Benoit Charette announced that, effective immediately, the Société de l’assurance automobile du Québec (SAAQ) will require Ontario drivers with less than 24 months of Class 1 experience to pass a practical road test before receiving a Quebec Class 1 licence.

Drivers who fail the test twice will be required to complete Quebec’s mandatory Class 1 training program.

The temporary measure follows a May 12 report from Ontario’s auditor general that identified weaknesses in the province’s commercial driver training and licensing system and called for stronger oversight to ensure drivers are properly qualified.

Quebec also announced the creation of a working group that will develop recommendations to strengthen road safety requirements for temporary foreign workers who operate heavy vehicles.

July 10: CRA Confirms Focused Trucking PSB Crackdown amid Concerns over Owner-Operator Reviews – TruckNews.com

The Canada Revenue Agency (CRA) has confirmed it has launched a focused compliance program targeting personal service businesses (PSBs) in the trucking industry, as owner-operators and tax professionals warn legitimate independent contractors may be getting caught up in the crackdown.

CRA said Budget 2025 provided funding to lift a moratorium on assessing penalties for failure to report fees-for-service transactions in trucking and to implement a focused program addressing non-compliance related to PSBs and reporting fees for service.

The agency said an incorporated truck driver may be considered to be operating a PSB when the services provided would otherwise normally be performed by an employee of the carrier.

Under the Income Tax Act, five conditions must be met for a corporation to be considered a PSB. The key test in many trucking cases is whether the worker would reasonably be considered an employee of the carrier if the corporation did not exist. CRA said it does not rely on a single factor when making that determination.

“Ownership or full control of a truck under a lease arrangement is one of many factors that is considered in making this determination,” said CRA spokesman Benoit Sabourin.

That explanation conflicts with what several tax professionals say they are seeing in practice.

July 10: CTA Advises of CRA “Requirement to Pay” Notices Being Circulated – CTA press release

The Canadian Trucking Alliance (CTA) has recently been made aware of a series of notices being issued by the Canada Revenue Agency (CRA) to carriers.

Over the past several weeks, carriers have reported receiving correspondence indicating that another business – often another carrier they have previously dealt with – has an outstanding tax debt owed to the CRA. In some cases, the amounts identified in these notices are substantial, reaching into the multi-million-dollar range.

The notices, known as “Requirement to Pay” orders, instruct recipients that any funds currently owed, or that may become owed in the future, to the identified company must instead be remitted directly to the CRA. The correspondence typically includes instructions for payment, as well as CRA contact details and reference information.

According to the Agency, these requirements are issued in situations where the CRA has been unable to reach a satisfactory payment arrangement with a taxpayer who has an outstanding debt. The notices function as a form of garnishment, redirecting payments owed to the debtor directly to the CRA.

July 11: Skyrocketing Insurance Costs in the U.S. Put the Brakes on Big Trucking Profits – Commercial Carrier Journal

Rising insurance costs are eating away at the bottom lines of America’s largest trucking companies, driving a collapse in profits over the last five years.

Columbus, Ohio-based financial analysis firm Demotech scrutinized financial filings from the 10 largest publicly traded U.S. transportation firms and found that combined net profits plummeted nearly 47% between 2021 and 2025. The steep decline comes as skyrocketing insurance and claim payouts outpaced overall revenue growth by more than five-to-one.

Demotech noted the profit squeeze was not caused by a drop-off in freight demand. Aggregate revenues actually increased by 9.95% over the five-year stretch, peaking alongside expenses in 2022 before leveling off. Instead, carriers are struggling to convert revenue into earnings due to cost pressures.

While most day-to-day operating expenses closely tracked revenue fluctuations, insurance costs completely decoupled from normal spending trends.

The 54.4% surge in insurance outlays vastly overshadowed the 15.16% increase in overall corporate expenses.

July 21: No Cross-Border Ceremony for Gordie Howe Bridge in Light of U.S. Trade Threats: Minister – CBC News

Canada will celebrate the opening of the Gordie Howe International Bridge this week, the federal minister of infrastructure’s office said on July 21, but there will not be a celebration with the United States.

“In light of trade action threatened by the United States earlier this week, it would be inappropriate to proceed with a celebratory event between the two countries,” said Jenna Ghassabeh, director of communications with Minister Gregor Robertson’s office.

July 23: Canadian Companies with Trucks Running on U.S. Roads May Be Liable for This U.S. Excise Tax – Taft Stettinius & Hollister LLP

In recent years, many small and mid-size Canadian trucking companies received an unwelcome surprise from the U.S. Internal Revenue Service (IRS): a letter announcing an IRS audit to determine whether the company owes U.S. Heavy Highway Vehicle Use Tax. Even for companies that have been in business for years, that letter may have been the first time they have heard about this U.S. excise tax.

A company may be liable for U.S. Heavy Highway Vehicle Use Tax if one or more motor vehicles designed to carry a load over public highways are registered – or required to be registered – in the company’s name and are used on any public highway in the United States.

July 24: C.H. Robinson Hit with $604-Million Advisory Verdict in Negligent Carrier Selection Case – Logistics Management

In a filing with the U.S. Securities and Exchange Commission, C.H. Robinson said that a Dallas County, Texas jury issued an advisory verdict against the company and two other defendants in “a lawsuit related to a trucking accident involving an independent motor carrier,” with compensatory damages of $604 million that could be assessed against C.H. Robinson.

C.H. Robinson said in the filing that the advisory verdict remains subject to post-trial proceedings before the court enters a final verdict and expects to appeal if the jury’s verdict is entered as final.

July 30: Multiple Wars Cause Global Diesel Shortage – Marketplace

Diesel fuel is in especially short supply right now, driving prices to US$5.34 a gallon, which is just about 50 cents shy of AAA’s all-time record.

There are a lot of layers to peel back when it comes to why exactly diesel fuel is in such a crunch right now. Of course, there’s the underlying Iran conflict that is limiting diesel exports out of the Middle East.

“Diesel was disproportionately affected, because diesel is one of the major refined products that is most exported out of the Middle East Gulf,” said Will O’Neil, principal analyst at S&P Global Energy.

That tightened diesel markets.

More recently, Ukraine struck Russian refiners, and Russia is restricting exports. “We have lost – with Russia alone – 10% of globally traded diesel supply,” O’Neil said.

And there’s more:

“Saudi Aramco had to shut a pretty large refinery because of some damage caused by Houthi strikes,” said Abhi Rajendran, director of oil intelligence research with Energy Intelligence.

It’s a big confluence of things.

Rail

July 23: UP, CN Sign Pacts on UP-NS Merger, Canada-Mexico Trade Corridors – Progressive Railroading

CN and Union Pacific Railroad have signed two memorandums of understanding (MOU) that grant new access for the Class Is.

The first MOU is dependent on the Surface Transportation Board’s (STB) approval of the proposed UP-Norfolk Southern Railway merger and calls for CN to drop its opposition to the merger. The agreement establishes a framework for CN to gain access to shipper facilities where the merger would reduce Class I options from three to two or from two to one.

CN would also gain overhead rights between Tuscola and East St. Louis in Illinois and between St. Louis and Kansas City in Missouri, as well as usage of UP’s Neff Yard in Kansas City. Additionally, CN would acquire NS’ ownership interests in the Kansas City Terminal Railway Co. and the Terminal Railroad Association of St. Louis, CN officials said in a press release.

The second MOU provides UP with expanded operating rights over CN’s Elgin, Joliet & Eastern Railway (EJ&E) corridor around Chicago, while granting CN new rights over UP’s network between Memphis, Tennessee, and Eagle Pass, Texas.

CIFFA Advocacy, Communications, Activities

July 9: CIFFA Submission to Digital Trade Strategy Consultation

CIFFA has submitted its insights to Transport Canada and Global Affairs Canada as they develop a strategy to advance the digitalization of trade processes, identifying impediments and inefficiencies to digital trade and its associated processes from the association’s trusted perspective as a leader in the supply chain and logistics sector.

CIFFA has long advocated for a simplified “Tell Us Once” approach to data submission by businesses and carriers, along with the implementation of digital, paperless trade systems in Canada. Fully implementing this approach would eliminate duplicate paperwork, reduce administrative errors and ease processing bottlenecks. Our membership strongly supports efforts to accomplish these worthwhile goals.