Major relief for vehicle shipping customers

We are pleased to inform you of important developments regarding the USTR fee that was scheduled to take effect this week. Following high-level trade negotiations, the United States Trade Representative (USTR) has officially announced a one-year suspension of the Section 301 port fees on maritime transport services.

USTR Fee Suspension

Following the October 30th, 2025 meeting between President Trump and President Xi Jinping in South Korea, the United States Trade Representative (USTR) has officially announced a one-year suspension of the Section 301 port fees on maritime transport services.

This suspension applies to all fees under Annexes I, II, and III, including the $46 per Net Registered Ton fee for foreign-built vehicle carriers.

Impact to Your Shipments

Effective immediately, the USTR Fee WILL NOT be applied to any RORO shipments during the suspension period.

The previously announced fee implementation scheduled for November 14th – 19th (depending on carrier) has been postponed. No USTR fees will be charged during the suspension period.

Key Details

Important Information

• Suspension Period: November 10, 2025 through November 9, 2026
• Applicable Carriers: All RORO carriers
• Fee Status: SUSPENDED – No fees will be charged during this period
• Scope: All shipments entering or exiting U.S. port groups

What You Need to Know

This suspension is the result of a trade agreement between the United States and China. During the one-year suspension period, no party will accrue liability for or be required to pay the fees on maritime transport services under the USTR Section 301 action.

Ongoing Negotiations: The United States and China will negotiate regarding the issues raised in the investigation during this suspension period. We will continue to monitor developments closely and will provide you with timely updates if there are any changes to this suspension or if fees are reinstated after the one-year period.

This suspension applies uniformly to all ocean RORO carriers using foreign-built vessels, providing relief from the government-mandated fees that were set to take effect.

Questions?

If you have any questions or concerns regarding this suspension or its impact on your shipments, please contact our office immediately. We are here to provide you with any additional information you may need.

Thank you for your continued business. We are pleased to share this positive development with you.

Ready to Ship Your Vehicle?

Get a free quote and speak with one of our shipping specialists today.

Call (972) 602-1670 Get a Free Quote

© 2025 Trans Global Auto Logistics — Your Trusted POV Shipping Partner

Have a quick question? Email us or call (972) 602-1670

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Bringing Your POV Home? You Might Qualify for Duty‑Free Entry.

For retired service members & U.S. government contractors

If you’re ending a contract overseas or returning from service not on PCS orders, you may still have a path to bring your personally owned vehicle (POV) back to the U.S. without paying import duty—even with today’s headlines about elevated tariffs. We’ve helped many customers navigate this successfully on a case‑by‑case basis with written guidance from U.S. Customs and Border Protection (CBP) at the planned port of entry.

Yes—There’s Hope: The “Personal Effects” Path

While standard rules say a foreign‑built vehicle is typically dutiable, some ports will allow a returning resident after deployment (or contractor finishing an overseas assignment) to import a long‑owned, personally used vehicle as household/personal effects when certain conditions are met. In our customers’ experiences, the most important keys have been:

• Ownership & Use: You’ve owned the vehicle for 12+ months overseas and used it for personal, non‑commercial purposes.
• Returning to the U.S.: You’re moving back after retirement or end of tour, or contract completion (not on PCS orders).
• Written Port Guidance: You contact CBP at the planned port of entry, explain your circumstances, and obtain written confirmation allowing entry as personal effects.

With that written approval, we can prepare your customs entry accordingly. This has been a game‑changer for many customers who thought tariffs made shipping impossible.

Service Members Returning on PCS Orders

For active duty U.S. military service members returning to the United States on Permanent Change of Station (PCS) orders, your POV import is automatically duty‑free as long as you can provide a copy of your valid PCS orders. This is a well‑established exemption and does not require the personal‑effects path described above.

What About Today’s Tariffs?

There’s a lot of news about tariff increases and trade measures. In general terms:

• Normal MFN Duty Rates: Passenger cars are often ~2.5% duty; light trucks can be higher (e.g., 25%). These are baseline duty rates, separate from any special tariffs.
• Country‑ or Product‑Specific Tariffs: Some vehicles—especially certain categories from specific origins (e.g., Section 301 measures)—may face additional tariffs. These have changed over time and can be substantial for select vehicle types.
• Your Case May Be Different: When CBP permits entry as personal effects, it can change how your shipment is treated. Outcomes are port‑specific and fact‑specific, which is why we help you approach the port proactively to seek written guidance.

Bottom line: Don’t self‑disqualify because of scary tariff headlines. If you’ve owned the vehicle for 12+ months and used it personally, you may have a viable, duty‑free path—with the right documentation from the port.

How We Help — Step by Step

1. Quick Fit Check (Free): We review your situation and vehicle details to assess eligibility. No obligation.
2. Prepare Your Packet: We help you assemble proof of ownership (12+ months), personal use evidence, ID, orders/contract completion letters, and any export paperwork.
3. Coordinate with the Port: We guide you in contacting CBP at the planned port of entry with a clear, respectful request for written guidance allowing personal‑effects entry.
4. Customs Entry & Compliance: If approved, we handle the duty‑free entry as personal effects. Either way, we manage EPA/DOT, ISF, etc., so you’re covered.
5. Door‑to‑Door Logistics: Ocean booking, stateside handling, and domestic trucking—coordinated end‑to‑end.

Common Questions

Does this waive safety/emissions rules?

No. EPA/DOT compliance still applies. We’ll help you determine the right pathway (e.g., conforming vehicle, eligible exemptions, or Registered Importer process where applicable).

Is approval guaranteed?

No—it’s case‑by‑case and port‑specific. That’s why getting written guidance from CBP at your intended port of entry is essential. Our team will help you prepare and present the request properly.

What if my car is U.S.‑made?

Vehicles originally manufactured in the U.S. and returned may qualify for special treatment under “returned goods” provisions. We’ll verify the VIN build origin and pursue the most favorable path for you.

Can this help with special tariffs?

It can change how your entry is treated. Some customers have avoided normal duties under the personal‑effects path with written port approval. The specifics depend on origin, vehicle type, and port guidance.

What To Do Next?

• Contact your sales rep for further guidance
• Click below to get a free shipping quote and further information.
• You can also setup an appointment to discuss your circumstance and if this can possibly work for.

Don’t have everything? That’s OK—we’ll help you build a solid packet.

Get a Free Eligibility Check Talk to a Specialist

We understand money is tight after a long deployment or contract. If there’s a lawful way to bring your car home affordably, we’ll find it.

Friendly disclaimer: This article is general information, not legal advice. Tariffs, duties, and CBP practices change over time and may vary by port. Final decisions rest with CBP. We’ll help you present the best case and follow the latest guidance.

© 2025 Trans Global Auto Logistics — POV Import Specialists for Military Families & Contractors

Have a quick question? Reply to this email or call us at (972) 602‑1670.

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We’re thrilled to announce that Trans Global Auto Logistics has been honored as one of the Top 10 Automotive Shipping Services Providers for 2023 by Auto Business Outlook Magazine!

This prestigious recognition reflects our unwavering commitment to excellence and the high standards we maintain in the automotive shipping industry. We are proud to have earned a place among the top providers, and we extend our heartfelt thanks to our dedicated team and valued customers who have played a pivotal role in this achievement.

A Spotlight on Trans Global Auto Logistics: Leading the Evolution

Auto Business Outlook Magazine recently conducted a comprehensive interview with Aldo Flores, our Chief Operating Officer, to delve into what sets Trans Global apart in the dynamic world of automotive shipping.

In the article, the magazine captures the essence of Trans Global’s transformative impact on the industry:

“The international automotive vehicle shipping industry is experiencing a significant upgrade, evolving from the fragmented and uncoordinated status quo. Among the pioneers making this possible, Trans Global Auto Logistics stands at the helm of this change.”

To learn more about this achievement and gain deeper insights into Trans Global Auto Logistics, we invite you to read the full article on Auto Business Outlook Magazine’s website. Aldo’s interview highlights the core values that drive our services and showcases the passion we have for ensuring the seamless transportation of vehicles for our clients.

Read the Full Article Here: Auto Business Outlook Magazine

At Trans Global, we are committed to delivering exceptional automotive shipping services, and this recognition fuels our determination to continuously improve and exceed expectations. We appreciate your ongoing support and trust in our services.

Thank you for being part of our journey! Trans Global Auto Logistics remains committed to revolutionizing the automotive shipping landscape, one successful delivery at a time.

Best regards, The Trans Global Auto Logistics Team

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What does the next few months have in store for supply chain and the logistics industry?

Unfortunately, it’s hard to say, but what we do know is that imports increased by 7.2% at the beginning of the year. However, the metrics are still down compared to 2019 and early 2020 data. The good news is that in January 2023 US logged the highest monthly gain since May 2022, the bad news is – the statistics are almost the same as the metrics from before the COVID-19 pandemic, 4 years ago.

According to Port Trucker there are even worse news – February will be the slowest month for many Shipping Companies, this prediction is based on the metrics not looking great since the beginning of the month. To quote Jonathan Gold, the NRF’s vice president for supply chain and customs policy – “February is traditionally a slow month, but these are the lowest numbers we’ve seen in almost three years’’.

The levels of uncertainty about the future of imports in 2023 are almost the same as at the beginning of the pandemic in 2022. In many ways January and February are similar to 2020, when the economy shut down as a result of the pandemic and many companies were unsure of what’s going to happen next. Now the economy is slowly coming back to normal, but the uncertainty surrounding the future is almost the same as it was in 2020. This is a challenging time for supply chain and the whole logistics industry, but it’s crucial to remember that the predictions are based on key, but ever-changing factor – the economy.

On a more positive note – the experts predict that the next months, especially March-June will show a huge growth in metrics when it comes to imports. Experts predict that the amount of imports in March will be above the 2019-2018 levels.

Speak to our Agents at Trans Global Auto Logistics today to find out more information and book your place as soon as possible to ensure the shipment will arrive at its destination on time.

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With so many great Classic Car Auctions happening from coast to coast, the beginning of 2023 proved it will be an amazing year for all classic car lovers. Each Auction is an opportunity to become an owner of a beautiful classic and give the unique vehicle a new home.
2023 started off strong with January’s event – Barrett-Jackson Scottsdale Auction – perfect for anyone looking for a car including muscle and classic cars, hot rods and rare European Classics. Some of the cars showcased on the Auction included 1955 Mercedes-Benz, 1966 Shelby Cobra and a 1970 Plymouth Superbird.

February’s Auction to look out for is the Mecum Auctions Kissimmee – a great choice for anyone looking for an American Classic Car. Some of the vehicles that are being auctioned this year are Chevrolet Camaros, Ford Mustang and Dodge Challengers. You also don’t want to miss out on 1970 Plymouth Hemi Cuda and the 1969 Ford Mustang.

If American Classics are not what you’re looking for at this moment or if you’re looking for something with a European touch, then RM Sotheby’s Amelia Island is the event you should attend in March 2023. The auction features many great European Classic cars such as Jaguars, Ferraris, and Porsche. If you’re looking to buy a 1957 Ferrari 250 GT TdF or a 1973 Porsche 911 Carrera RS this event can make this dream come true.

The process of bidding and the thought of becoming a Classic Car owner are exciting, however it’s important to remember that the vehicle, once brought, must be somehow transported from the auction to its new destination. The logistics of shipping a classic car can get difficult, especially if you’re an international buyer, but it doesn’t have to stop you from fulfilling your dream! Trans Global Auto Logistics specialises in safe and secure international shipping services. Our team will make sure the method of shipping suits your unique vehicle and we will ensure your newest purchase arrives in a perfect condition. With over 30+ years of experience in the Logistics Industry Trans Global Auto Logistics provides the best door-to-door services, we have the knowledge and expertise to handle the customs clearance and help you with documentation and paperwork required for international vehicle shipping.

With all the Classic Car Auctions taking place in 2023 it’s important to plan the logistics aspect of buying a classic car. Reach out to us today and let us take care of the shipping process. We will make sure your newest purchase arrives at its new home in a timely manner and in a perfect condition.

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The increased competition for port space has been one of the biggest challenges for any logistics company this year. The waiting time for cargo ships to be loaded and unloaded has increased dramatically, which means that many shipping companies are struggling to secure a cargo space to transport their vehicles. The result is also increased shipping times for customers and in some cases increased costs.

The 2020 COVID-19 pandemic had a massive impact on vehicle shipping companies and the logistics industry overall. Reduced capacity at ports, social distancing, increased health and safety protocols makes the transport of goods much more complicated than it was before the pandemic. Even in 2023 the COVID-19 pandemic is having a big impact on the automotive industry; customers are experiencing delays and disruptions in delivery of their vehicles.

However, in 2023 the pandemic isn’t the only reason for Europe’s port congestions. The war in Ukraine, potential of increased regulations and tariffs on trade in the European Union are also concerning for the shipping industry. All the new measures put in place will likely further impact the time and cost of shipping vehicles through European ports.

Europe’s port congestions affect the vehicle shipping industry worldwide. Since the port congestion started companies are exploring alternative shipping routes and the whole industry is working to improve the shipping efficiency and increase the capacity at ports. The positive news is that vehicle shipping is a complex process involving many people and organisations, and many people are working to make the ports function better and make the vehicle shipping a smoother process.

The industry is greatly affected by the current and expected congestions, the rising costs and longer waiting times. At Trans Global Logistics we believe in full transparency and keeping our customers informed of anything that could impact the shipping times of their vehicles. We believe that with proper collaboration and further measures in place the situation will be improved and the vehicles can be shipped to its new destination in a timely manner and reasonable cost.

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Limit your exposure to asbestos through careful planning

Asbestos is a naturally occurring mineral used in various products, including car parts. Exposure to asbestos is known to cause cancer and other serious health problems. It can splinter out into fibers when the materials are disturbed or damaged, such as during car repairs or accidents. Asbestos fibers can also be released into the air when cars with asbestos-containing materials are scrapped or disposed of improperly.

Why is asbestos used in cars?

Asbestos has been used in various industries for centuries due to its heat-resistant and insulation properties. While no longer used in many industries due to health concerns, asbestos is still found in some car parts. If you are concerned about exposure to asbestos, you can minimize risk by ensuring that your car is well-ventilated and avoiding working on your car in enclosed spaces.

Known health effects of exposure to asbestos

Asbestos is a known carcinogen, and exposure to asbestos can increase your risk of developing cancer. In cars, asbestos fibers can be released into the air when parts are manufactured or repaired, and people can be exposed to these fibers when they breathe in the air around them.

Symptoms of asbestos exposure include coughing, shortness of breath, and chest pain. If you think you may have been exposed to asbestos, you should immediately see a doctor. There are ways to reduce your risk of exposure, such as wearing protective clothing and using respirators when working with car parts that may contain asbestos fibers.

How can people be exposed to asbestos from cars?

Asbestos has historically been used in various automotive parts and materials due to its heat and chemical damage resistance. Automobiles may contain asbestos in brake pads, clutches, gaskets, and other components. If you are concerned about reducing or eliminating exposure to asbestos from your car, it is crucial to inspect these vehicle components closely and contact a professional if there is any sign of damage or contamination.

Exposure to asbestos fibers has been linked to an increased risk of developing mesothelioma – an aggressive form of cancer that typically affects the lining of the lungs. If you believe you may have been exposed to asbestos from your car, it is vital to seek medical attention and consult a qualified asbestos attorney.

Steps that can be taken to reduce exposure to asbestos in cars

While asbestos is a common substance, it must be taken seriously and with preventative measures to ensure its fibers are not inhaled or come into contact with the skin.

The first step is to identify which parts of the car contain asbestos. Once you know where the asbestos is, you can take steps to avoid exposure by not touching or disturbing those areas.

If you need to work on the part of the car that contains asbestos, be sure to wear proper protective gear, including a respirator if necessary. Keeping a vehicle well-maintained and in good repair minimizes the likelihood of creating asbestos fibers.

When disposing of any materials that may contain asbestos, be sure to follow all local regulations regarding safe disposal methods. Asbestos is a highly regulated substance and cannot be disposed of with other trash or waste. Failure to dispose of asbestos in accordance with state and federal regulations can result in significant fines and legal action. If you are unsure of how to dispose of asbestos in your area, contact your local or county office of environmental protection or waste management.

Asbestos testing when shipping a vehicle overseas

Several countries require vehicle asbestos testing to ensure that cars on the road are not emitting dangerous levels of asbestos fibers into the air. These countries include Australia, Canada, and the countries within the European Union. In addition to requiring testing, these jurisdictions also have regulations limiting the amount of asbestos a car’s parts can contain.

How do asbestos regulations impact those who want to export vehicles?

1. The regulations for exporting old vehicles from the US can be complicated and vary depending on the destination country.
2. If you are planning on exporting a vehicle manufactured more than twenty-five years ago, it’s important to research the regulations in advance to avoid any potential problems.
3. The regulations can impact both the buyer and seller of an old vehicle, so it’s important to be aware of them before entering into any transaction.
4. Some countries have stricter regulations than others when it comes to importing old vehicles, and countries also have different regulations for “classic cars” or vehicles considered collectible, so it’s important to check with the relevant authorities before shipping anything overseas.
5. In some cases, it may be easier and less expensive to simply sell your old vehicle rather than trying to export it to another country.

What regulations are in place for importing vehicles to the US?

1. The United States has strict regulations in place for importing vehicles from other countries. There are a number of countries the US will not allow vehicles to be imported from due to manufacturing or environmental standards designed to limit exposure to asbestos.
2. In order to import a vehicle into the US, you must first obtain a permit from the US Department of Transportation.
3. All imported vehicles must meet the safety and environmental standards set by the US government.
4. Vehicles that do not meet these standards will be refused entry into the United States.
5. If you are caught importing a vehicle without a permit, you may be subject to prosecution and/or fines.

CONNECT WITH TRANS GLOBAL TODAY

Importing and exporting vehicles can be a complicated process that requires careful attention to detail with numerous regulatory bodies both in the US and abroad. Trans Global Auto Logistics has over 30 years in the vehicle shipping business. Consult with one of our representatives today to help you import or export your car.

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What You Need to Know When Shipping Your Car

At Trans Global Auto Logistics, shipping cars overseas is our bread and butter. So, whether you’re relocating outside the United States for work or need military shipping for active-duty assignments, we can walk you through the steps of shipping your car (or truck) to your destination.

Get familiar with the terms of overseas shipping for cars and trucks

One term many clients inquire about is “self-propelled vehicle.” This term appears on many documents and forms that need to be completed. This classification includes cars and trucks, buses and motorcycles, motorhomes (RVs), and specific agriculture and construction equipment designed to operate on the ground. If you are looking to ship heavy equipment or a vehicle that may not fall into this category, please contact us for more information.

Preparing the paperwork to ship a car overseas

Before starting the process of shipping your car, it’s important to become familiar with the US laws and regulations and those of the country you are shipping to. For example, some countries forbid importing older vehicles (with exceptions for antiques or collectible classic cars). It’s also important to understand the taxes and tariffs you will be charged. In some instances, purchasing a vehicle at your destination may be more affordable.

U.S. Customs and Border Protection regulates everything to ensure requirements are met, and fees are paid. Hiring an international mover can help ease the paperwork as they will often provide the necessary clearance documents.

Readying your car for shipping

Once your paperwork is in order, it’s time to prepare your vehicle for shipping.

• Drain all gasoline and hazardous/flammable liquids.
• Disconnect or remove the battery.
• Check with your moving company about using the vehicle’s interior for packing space. Some shipping companies will not allow loose items inside.
• Secure all documentation, such as the title and registration. If there are issues with the vehicle’s title or if you are a US Government Employee relocating with a government-owned vehicle, be sure to share that information with your shipping provider.

Active-duty military? Extra details to know about shipping a car overseas

For US active-duty military and government employees, additional rules may apply. Some points to consider when shipping your car:

• Size and weight limitations — The government typically pays to ship one vehicle weighing up to 20 metric tons. If your SUV or RV weighs more, you must pay extra.
• Vehicles modified in the US —Some non-factory vehicle modifications may need to meet the requirements of the country they are being shipped to.
• Know your timeline — Shipping times may vary based on your military branch or government office. Having this information will help with planning your relocation.
• Learn what can be packed in your vehicle — Don’t assume your vehicle can be used as a packing container for household relocation. Learn what is and is not allowed inside.

CONNECT WITH TRANS GLOBAL TODAY

Trans Global Auto Logistics has over 30 years in the business. Consult with one of our representatives today, and we’ll ensure that shipping your car overseas is as stress-free as possible.

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Get An Answer to One of Our Most Frequently Asked Questions

Without a doubt, one of our most frequently asked questions is, “How long does it take to ship a car overseas?” This article will provide a detailed overview of the process and answer your questions about how long it will take to ship your car or truck. Please note that this article only applies to personal vehicles. Please get in touch with us directly for information about shipping heavy equipment or a fleet of vehicles designed for resale or commercial use.

The Average Speed of a Cargo Ship Determines How Long it Takes to Ship a Car Overseas

Judging the average speed of a cargo ship is sometimes tricky because the sea is an untamed, unpredictable entity. You never know what might happen on the water to delay your vehicle shipment. However, a qualified shipping company does everything possible to mitigate the risks.

Collecting a list of estimated freight transit times from your freight forwarder is imperative. A cost estimate for each shipping method is helpful, too. What you learn can affect your choice to go with an open-air carrier or a Roll-On/Roll-Off (RoRo) ship, or you might decide to go with an auto shipper that can transport your car via air freight. Selecting the air freight option may reduce how long it will take to ship your car or truck. At Trans Global Auto Logistics, we trust our ability to ship your vehicles quickly and without error. Here’s a breakdown of average speeds for a variety of carriers.

Consolidated Container Ship

Consolidated container ships are the most cost-effective way to transport your vehicle. Your car gets loaded into a container with other automobiles going to the same port. While more affordable than other options, the average speed of a cargo ship is low when compared to other options. Of course, that also depends on your location. Your car may reach its destination in three weeks, but when determining how long it takes to ship a car or truck, it’s more likely to take 30-40 days.

Single Container Shipping

Although single container shipping also involves a cargo ship, it reduces your freight transit times. But, unfortunately, you pay dearly for the privilege. Transporting your car in a large container of its own will likely cost twice as much as a consolidated container.

However, it takes far less time for your vehicle to voyage through the shipping process, and it will be cleared through customs quickly. When determining how long shipping a car overseas will take with this method, your vehicle should arrive in two to three weeks. It’s the optimal choice for moving classic cars.

RoRo Ships

RoRo ships are the preferred method for shipping cars. Rather than being loaded into a container, the automobile is rolled onto the ship and safely braced, then driven off once it reaches its port.

RoRo ships are faster than the average speed of a cargo ship but slower than what you’ll experience when you book a container yourself. When trying to figure out how long it will take to ship your car or truck, it comes down to the destination and total distance, though your auto shipper should be able to get your vehicle to you in less than a month. It’s an excellent middle-ground option, but you should be aware that your RoRo ship probably won’t travel a direct route to your destination.

Ultimately, you have to compare the average speed of a cargo ship to how long you can wait to have your car shipped overseas to your overall budget. If speed is more important than anything and money is no object, then air freight might be your best bet. Talk to Trans Global Auto Logistics about the pros and cons of each choice.

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Some politicians and members of the business community offer opinions on how war affects the economy in a positive way when the fighting occurs in other people’s countries. They cite how warfare can create production demand, technological innovation, and business profits. However, it’s important to remember two things when presented with such arguments. First, war has a significant cost for all countries involved. Money that must be spent on military expenses and rebuilding destroyed infrastructure could have been spent on improving living conditions and boosting economic innovation. Second, is that modern-day warfare is no longer limited to the two or three countries involved in the on-the-ground fighting. We live in a global economic community that is deeply intertwined and dependent on one another. One only has to look at how the Russia-Ukraine war has disrupted supply chains and the availability of raw materials. If there are positive outcomes for how the war affects the economy, they are not ones benefiting most independent business owners and the general population.

Wars and Global Trade Wars

Global trade wars happen when one country or a group of countries impose tariffs (taxes) or quotas (limits) on imports from another country or groups of countries. These tariffs and quotas create a domino effect where the countries they are designed to curtail retaliate with their own forms of trade protectionism. As a result, these global trade wars ultimately reduce international trade. In some instances, the trade limits and higher prices foster domestic growth and innovation, but in cases where raw materials are not widely available (crude oil, uranium, diamonds) or a country that cannot bootstrap “homegrown” solutions, global trade wars can create disastrous trickle-down effects including inflation and a general depression of economic growth. While global trade wars do happen without the influence of war, they are another example of how wars affect the economy. All too often, outside countries impose trade sanctions and boycotts as part of their efforts to quell the fighting and limit the power of the aggressor. These mechanisms are the most extreme forms of tariffs and quotas and, when used against countries like Russia, can create economic instability worldwide.

How Wars Affect the Economy: Shipping Services

Shipping services are critical in keeping the global economy moving. Unfortunately, the Russia-Ukraine war has severely impacted all shipping, including international cargo shipping via ocean transport, air freight and travel, and land transportation by rail and vehicles. Shipping routes have been destroyed or cut, and many transportation firms are curtailing services or experiencing significant delays. As a result, shipping rates have skyrocketed. In addition, some freight and transportation insurers have exponentially increased premiums due to the dangerous conditions at many shipping ports and transportation hubs in areas experiencing bombing and active fighting.

If those conditions weren’t bad enough, citizens of Russia and Ukraine comprise nearly 15% of the seafarers in the global shipping workforce. As a result, shipping companies around the globe are now dealing with a significant employee shortfall in hiring and retaining crew members due to the war.

How Wars Affect the Economy: Oil Prices

Regardless of where a person lives, everyone has been impacted by rising oil prices. While the current Russian-Ukraine has disrupted the oil supply chain from Russia and created a global trade war, this is not the first time the United States has experienced sticker shock at the gas station. The Gulf War of 1990, which involved Iraq attempting to annex Kuwait, increased oil prices. Prices more than doubled in three months, from $21 to $46 per barrel. When a country is a major oil or natural gas producer, sanctions and supply chain disruptions put pressure on gas prices, regardless of where one lives. For countries that are major oil/gas producers, this is another example of how wars affect the global economy.

Psychological Costs

While it’s possible to estimate how war affects the economy and its associated costs, it is much harder to determine the psychological impacts and how the pain, suffering, and fear can traumatize soldiers and civilians. This personal and collective trauma ultimately affects how a country is or is not able to recover and rebuild when the conflict ends. Some countries, such as Germany, Vietnam, and Rwanda, exhibited remarkable resiliency following prolonged and horrific wars and were able to rebuild. However, there are still many places throughout the world where wars have only brought more violent conflicts and increasing levels of destabilization and economic insecurity for people residing in those areas.

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