10% VAT on Certain Intra-Community Deliveries & Key Takeaways

Hello 👋

Welcome to your daily industry briefing.

To save you from jumping between multiple tabs, I’ve curated today’s most relevant news in global logistics, international trade, freight, and customs for 25-03-2026. Condensed and ready for a quick, insightful read 🚀.

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📋 Today’s Headlines:

• 10% VAT Applied to Select Intra-Community Energy and Fuel Deliveries from March 2026
• Spanish Fruit and Vegetable Exports Drop 8.5% in Volume in January 2026, Value Holds Steady
• Brazilian Orange Juice Exports to EU Drop in February Amid Market Uncertainty
• Saudi TGA Temporarily Exempts Vessels from Document Validity Requirements
• COSCO Shipping Volume Growth Masks Profitability Pressures in 2025
• U.S. Oil Trade Achieves Record Net Exports in Early 2026
• Fuel Crisis: IRU Urges EU Transport Ministers for Urgent Action
• Australia-EU Free Trade Agreement Concluded After Eight Years
• EU-Mercosur Trade Deal Set for Provisional Application from 1 May 2026
• EU-Australia Free Trade Agreement Signed, Targeting Critical Raw Materials
• IRU Urges EU Transport Ministers for Urgent Action on Surging Diesel Prices
• Spanish Fruit and Vegetable Exports Decline 8.5% in January 2026

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10% VAT Applied to Select Intra-Community Energy and Fuel Deliveries from March 2026

From March 22 to June 30, 2026, a 10% VAT rate will apply to specific intra-community deliveries, imports, and acquisitions of energy products like electricity, natural gas, wood fuels, gasolinas, gasóleos, and biofuels, as per Article 42 of Real Decreto-ley 7/2026[news]. This temporary measure, published in BOE núm. 71, Disposición 6544, allows operators to use the reduced rate in affected declarations during its validity[news].

The reduced 10% VAT—lower than Spain’s standard 21% rate—targets volatility mitigation for essential energy goods in EU cross-border trade, where intra-community supplies are typically VAT-exempt but acquisitions are self-assessed in the destination country[1][5]. June application depends on CPI trends for electricity, gas, or fuels, with adaptations in special taxes and reporting via forms like 303 and 349[news][2].

📉 Minimal cost impact on energy logistics ops
⚓ No direct effect on freight or port handling
📋 Compliance updates for VAT self-assessment
🌍 Temporary EU energy price stabilization measure

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Spanish Fruit and Vegetable Exports Drop 8.5% in Volume in January 2026, Value Holds Steady

Spanish exports of fresh fruits and vegetables declined by 8.5% in volume to 1.14 million tonnes in January 2026 compared to 1.25 million tonnes the previous year, while the total value remained nearly stable with a 0.6% increase to 1.952 billion euros[1]. This trend aligns with broader 2025 patterns where volumes fell 3-4% year-on-year through November, driven by a 6% drop in vegetables like tomatoes (down 15%), though fruit volumes stayed stable[1][3][6].

The value resilience reflects higher prices amid high production costs and competition from non-EU imports, positioning Spain as the EU’s top producer and second globally by value with over 20 billion euros exported by late 2025[2][3][4]. Primarily road-transported (94%) to EU markets like Germany and France, the sector faces ongoing pressures from protectionist policies and strict EU standards[3][4].

📉 Volume contraction signals reduced shipment demand
⚓ Primarily road freight to EU unchanged despite lower volumes
📋 No reported customs delays impacting January flows
🌍 EU protectionism and non-EU competition intensify pressures

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Brazilian Orange Juice Exports to EU Drop in February Amid Market Uncertainty

Brazilian orange juice exports to the European Union declined in February after a January increase, totaling 250.2 thousand tons from July 2025 to February 2026, down 55.7 thousand tons from the prior season.[1] February shipments fell to 24.5 thousand tons from 49.8 thousand tons in January, raising concerns despite solid U.S. volumes partially offsetting the trend.[1]

While EU exports dropped sharply, shipments to the United States reached 256.1 thousand tons over the same period, up 23% year-over-year, highlighting a shift in market balance.[1][2] Overall 2025/26 season exports are down 3.8% to 549.96 thousand tons with revenues falling 27.1%, driven by weaker European demand and global supply dynamics.[1][3]

📉 Declining EU demand heightens volume risk
⚓ Minimal port congestion from steady U.S. flows
📋 Potential Mercosur-EU deal eases future tariffs[9][14]
🌍 U.S. tariffs on by-products threaten derivatives[6]

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Saudi TGA Temporarily Exempts Vessels from Document Validity Requirements

The **Transport General Authority (TGA)** of Saudi Arabia has suspended the requirement for validity of certificates and documents needed for issuing or renewing navigation licenses and work permits for marine units, for a **30-day period** extendable if needed, applying to both Saudi and foreign vessels in the Kingdom’s territorial waters in the Arabian Gulf[1][2][5].

This measure responds to current circumstances and regional tensions, enabling vessels involved in maritime operations and projects to continue without leaving waters for inspections, while prioritizing safety and marine environment protection to ensure smooth operational flow[1][4][5].

📉 Low operational risk with enhanced flexibility
⚓ Supports uninterrupted freight and port activities in Gulf
📋 Temporary relief from regulatory documentation hurdles
🌍 Addresses regional tensions impacting navigation

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COSCO Shipping Volume Growth Masks Profitability Pressures in 2025

COSCO Shipping Holdings achieved a 6% increase in container shipping volume during 2025, with total cargo reaching 27.4 million TEU, yet this operational growth was substantially offset by declining revenues and compressed margins[6]. The company’s net profit plummeted 37% to CNY 30.86 billion (approximately $4.3 billion) as freight rates moderated sharply following periods of high volatility throughout the year[2][6].

The divergence between volume and profitability reflects challenging market conditions driven by macroeconomic headwinds and geopolitical uncertainty. Revenue fell 6.1% year-on-year to CNY 219.50 billion despite the volume gains, with the container shipping business specifically declining 6.7%[2][6]. COSCO’s trailing net margin deteriorated from 21% to 14.1% between quarters, signaling sustained pressure on operational efficiency despite investments in 18 new LNG dual-fuel vessels ordered in January 2026[8]. The company’s affiliated COSCO SHIPPING Ports division performed relatively stronger, recording 6.2% throughput growth to nearly 153 million TEU, with overseas terminals surging 11.5%[1].

📉 Profit margins compressed significantly as freight rates declined amid oversupply and demand softness across major routes
⚓ Container shipping market volatility continues to amplify earnings pressure despite consistent volume expansion
📋 Trade policy uncertainties and shifting supply-demand dynamics are creating operational complexity for 2026
🌍 Middle East tensions and geopolitical disruptions are tightening capacity on key routes despite broader seasonal demand weakness

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U.S. Oil Trade Achieves Record Net Exports in Early 2026

The U.S. has solidified its status as a net petroleum exporter since 2020, with the trade gap expanding to 2.8 million barrels per day in 2025 and reaching 3.1 million barrels per day in January 2026, reversing peak imports of nearly 15 million barrels per day in 2005[1].

This shift, driven by the shale boom and the 2015 export ban repeal, has positioned the U.S. as the world’s top crude producer, reshaping global energy markets while maritime exports of refined products like diesel hit near-record 6.3 million barrels per day in January 2026, up 10% year-over-year[3].

📉 Stable supply reduces price volatility risk
⚓ Boosted Gulf Coast tanker loadings strain capacity
📋 Minimal import tariff changes expected
🌍 Eases OPEC dependence amid Europe demand surge

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Fuel Crisis: IRU Urges EU Transport Ministers for Urgent Action

The International Road Transport Union (IRU) has called on EU transport ministers to implement immediate and coordinated action amid an intensifying fuel market crisis disrupting road transport across the EU, as outlined in a direct letter to address escalating supply chain risks[1].

This urgency stems from ongoing Middle East disruptions, including potential Strait of Hormuz closures affecting 20% of global oil supplies, with EU oil stocks high but gas prices surging and coordination groups monitoring security despite no immediate risks reported as of mid-March[1][2][3].

📉 **Severe fuel shortages risk halting road operations**
⚓ **Supply chain disruptions threaten freight mobility**
📋 **Regulatory coordination needed to ease transport rules**
🌍 **Middle East tensions drive global oil supply fears**

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Australia-EU Free Trade Agreement Concluded After Eight Years

Australia and the European Union finalized their landmark **Free Trade Agreement** on March 24, 2026, following eight years of negotiations, as announced by Prime Minister Anthony Albanese and European Commission President Ursula von der Leyen during a joint press conference in Canberra[1][3][4]. The deal eliminates tariffs on 98% of Australia’s goods exports to the EU, including industrial products, critical minerals, and agricultural items like wine, seafood, and nuts, while providing EU exporters with duty-free access to Australian markets, saving approximately €1 billion in tariffs annually[2][3][5].

This agreement strengthens economic ties between Australia and its third-largest trading partner—a bloc of 450 million consumers with a $21 trillion GDP—enhancing **supply chain** resilience amid global uncertainties and diversifying trade routes for both sides[1][3][4]. It also supports investment in sectors like mining, renewables, and services, alongside complementary pacts on security, defense, and research via Horizon Europe, fostering shared goals in democracy and climate action[1][5][6].

📉 Minimal operational risk from phased tariff reductions
⚓ Boost to freight volumes for agri-exports and critical minerals
📋 Simplified customs via tariff elimination and quotas
🌍 Diversifies trade amid geopolitical tensions and tariff leverage

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EU-Mercosur Trade Deal Set for Provisional Application from 1 May 2026

The European Commission has notified Mercosur countries, via Paraguay as depositary, to trigger provisional application of the EU-Mercosur interim trade agreement starting 1 May 2026, following the Council Decision of 9 January 2026.[1][2][3]

This step enables tariff reductions on over 90% of goods between the EU and Mercosur nations (Argentina, Brazil, Paraguay, Uruguay), despite opposition from EU farmers fearing competition in beef, poultry, and sugar, and a legal challenge at the EU Court of Justice.[2][3]

📉 Potential supply chain disruptions from farmer protests and legal uncertainties
⚓ Increased freight volumes expected on EU-Mercosur routes post-tariffs
📋 New customs rules for tariff-free goods requiring rapid adaptation
🌍 Strengthens EU ties with South America amid geoeconomic tensions

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EU-Australia Free Trade Agreement Signed, Targeting Critical Raw Materials

The EU and Australia announced the conclusion of their free trade agreement on March 24, 2026, eliminating tariffs worth €1 billion annually and boosting trade in goods currently valued at €49.4 billion yearly. Ursula von der Leyen and Australian Prime Minister Anthony Albanese hailed it as a mutual win, expanding EU exports by 33% over the next decade while granting Australia duty-free access for 97.8% of its goods.[1][4][5]

Europe’s primary focus is securing critical raw materials like rare earths, lithium, and bauxite from Australia, which supplies over a third of global lithium and 61% of bauxite, to diversify supply chains amid geopolitical tensions. Tariff reductions will also benefit Australian agriculture with new quotas for beef (35,000 tonnes) and sheep meat (30,851 tonnes), alongside cooperation in security, defense, and services like maritime transport.[2][3][6][8]

📉 **Low immediate risk** as deal awaits ratification
⚓ **Increased volumes** for critical minerals freight from Australian ports
📋 **Simplified customs** with tariff elimination and enhanced controls
🌍 **Diversification** from China/US amid trade turbulence

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IRU Urges EU Transport Ministers for Urgent Action on Surging Diesel Prices

The International Road Transport Union (IRU) has called on EU transport ministers to implement immediate coordinated measures amid an intensifying fuel market crisis threatening supply chains across the Union, with diesel prices rising 30-35% since the crisis began[5][1][3]. In a letter, IRU warns of operational distortions like fuel access restrictions and “tank tourism” along key corridors, risking continuity for over one million mostly SME operators consuming 6.8 billion liters of diesel monthly in heavy vehicles[5].

Fuel accounts for about one third of operating costs in road transport, where thin 1-3% margins leave little room to absorb shocks, exacerbated by cross-border supply imbalances and disruptions from the Strait of Hormuz[3][5][1]. IRU proposes an urgent Transport Council meeting, contingency plans for essential logistics, higher state aid limits, and an EU fund, alongside aligning with IEA on reserves and excise duty flexibility[5][3][1]. IRU EU Director Raluca Marian emphasized road transport’s strategic role, demanding swift joint action to avert disruptions[5].

📉 **Risk of logistics disruptions from fuel rationing and high prices**
⚓ **Freight delays on key EU corridors due to supply shortages**
📋 **Uncoordinated national responses fragmenting single market rules**
🌍 **Disruptions in Strait of Hormuz driving EU fuel volatility**

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Spanish Fruit and Vegetable Exports Decline 8.5% in January 2026

Spanish fresh fruit and vegetable exports fell 8.5% in volume during January 2026, declining to 1.14 million tonnes compared to 1.25 million tonnes in January 2025[1]. Despite the volume contraction, the sector maintained its export value trajectory, reflecting price resilience amid lower shipment quantities. This marks a notable reversal from January 2025, when Spain recorded 7% volume growth and 11% value growth year-over-year[1].

The decline reflects broader market pressures affecting Spanish producers, including high production costs and increased competition from non-EU suppliers who operate under less stringent environmental and labour standards[5]. Vegetables have been hit particularly hard, with tomato exports experiencing especially steep declines of 15% during 2025[5]. Spain remains Europe’s leading fruit and vegetable producer and the world’s second-largest exporter by value, exporting over €20 billion annually as of November 2025[4], with approximately 84% of shipments destined for EU markets[6].

📉 Volume contractions in key vegetables (cucumbers, peppers, tomatoes) signal sustained production and market challenges
⚓ Road transport demand may decline proportionally, with 94% of Spanish exports moving by truck to European destinations
📋 Compliance with EU environmental and labour standards creates cost disadvantages versus third-country competitors
🌍 Protectionist policies and market access restrictions continue limiting growth in non-European markets

📚 Sources:

1. Aplicación del 10% de IVA a determinadas entregas intracomunitarias
2. La exportación española de frutas y hortalizas desciende un 8,5 % en volumen en enero y mantiene el valor
3. Exportaciones brasileñas de jugo de naranja a la UE caen en febrero y generan incertidumbre en el mercado
4. Autoridad de Transporte saudí exime temporalmente a todo buque de requisito de validez de documentos
5. Cosco Shipping reports 6% rise in container shipping volume
6. Charted: America’s Oil Reversal, From Import Giant to Net Exporter
7. Fuel crisis: IRU calls for urgent EU transport minister action
8. Australia y la Unión Europea sellan un histórico Acuerdo de Libre Comercio tras ocho años de negociaciones
9. El acuerdo comercial entre la UE y Mercosur se aplicará de forma provisional a partir del 1 de mayo
10. Las tierras raras, el principal interés de la UE para su acuerdo de libre comercio con Australia
11. IRU pide a los ministros de transporte de la UE medidas urgentes por los precios del gasóleo
12. La exportación de frutas y hortalizas españolas desciende un 8,5 % en volumen en enero y mantiene el valor