News - How to Cope with Section 301 Investigations & Rising Freight Rates

As 2026 proceeds, the global steel and construction markets are confronting a logistics and regulatory “perfect storm.” As the U.S. Section 301 investigation into structural steel begins and “War Risk Surcharges” skyrocket because of tensions in the Strait of Hormuz, procurement managers are reconsidering how they’ll make it through.

China Royal Steel at a glance We know that consistency is what you need to build your business and the industry relies on. Here is our strategic assessment and the measures we are taking to protect your client's ROI in the Americas, Southeast Asia, and around the globe.

Navigating the Regulatory Landscape: The Section 301 Impact

The United States Department of Commerce initiated the United States Section 301 investigation to reduce structural steel imports on March 17, 2026 recognizes increasingly restricted market access. this has typically translated into pricing volatility and supply uncertainties for contractors in the U.S and its neighbors.

Our Solution:With our well-founded companies, ROYAL STEEL GROUP USA LLC and ROYAL GUATEMALA S.A., we deliver local knowledge that assists clients in compliance navigation. We reduce the risk of having technical or compliance refusal at the border by keeping a diversified supply chain and making sure that all the products meet strictly the standards of ASTM A992, A572 and A36.

Rising Freight Rates and the "War Risk" Challenge

The growing tensions in the Middle East has led major liners to make diversions, increasing lead time and CIF charges. This is especially the case in the Philippines and Middle East countries where infrastructure development is at its peak.

Our Solution:Royal Steel takes advantage of its priority position within container load shipping companies. We recommend our clients to move towards Forward-Buying strategies and flexible Incoterms. We are able to arrange multi-modal routes that avoid the most congested or dangerous areas of the world so projects like the 20,000 sqm in Costa Rica keep moving.

Mitigating Cost Inflation in Construction

With Mexico forecasting a 15% rise in building costs this year and U.S. titans such as Nucor increasing HRC prices to more than $1,025/ton, the heat on “Value Engineering” has never been greater.

Our Solution:We are experts in High-Strength, Low-Alloy (HSLA) steel and tailored processing of metals (3D Drawing, Precision Punching and Welding). This enables our customers to lower the total tonnage for a structure without sacrificing integrity, which directly counters the increase in material and freight costs.

About China Royal Steel

Established in 2012, China Royal Steel is a high-tech enterprise that integrates the research and development, manufacture as well as sales of austenitic stainless steel plate and related products. With offices in the USA and Guatemala, and a team of over 500 people worldwide, we offer integrated services for steel structures, steel sheet piles,H Beams and solar mounting systems.

China Royal Steel Ltd

Address

Bl20, Shanghecheng, Shuangjie Street, Beichen District, Tianjin, China

E-mail

[email protected]

Phone

+86 13652091506

Post time: Mar-31-2026

How to Cope with The Supply Chain Challenges Posed by Section 301 Investigations and Rising Freight Rates?