Ports of LA/Long Beach Experiencing Congestion

The ports of Los Angeles/Long Beach are experiencing severe congestion and are experiencing major delays.  To add to the frustration, the ports also have a shortage of equipment.  This unfortunately is having a negative impact not only on the ports, but also on the U.S. rail and intermodal nationwide. 

The latest information shows a dozen vessels currently at anchor waiting berth space.  Thousands of containers are being held at the terminals.  Containers are also backed up at the rail pending transportation to the port for export.

Congestion has mainly been caused by the prioritization of ultra-large container ships (ULCSs) which have capacities between 10,000 and 25,000 TEU, delays shipments by smaller container ships carrying capacities of less than 10,000 TEU. 

According to an article on JOC.com by Wayne Talley, the large number of TEU unloaded from (and loaded to) ULCSs at container ports and the mere sizes of ULCSs that call container ports can result in port congestion. Container port congestion occurs when containers (vehicles and ships) interfere with one another in the use of the port’s container (vehicle and ship) services to the extent that the waiting times for containers (vehicles and ships) to use these services increase.

China National Day Holiday Approaching

The China National Day is coming soon. Starting October 1, there will be four days off in China; October 1 thru October 4. The statutory holiday for National Day is generally 5 days, and China usually adds the weekends before and after the holiday for a total of 7 days. In Mainland China, overseas institutions and enterprises take 3-7 days off, and they will hang lanterns or banners with “celebrate the National Day” and other slogans to celebrate the National Day. All walks of life enjoy the “National Day Golden Week” and spend a good time with family.

In Ancient China, when the emperor ascended the throne, his birthday would be known as the “National Day.” Today, the National Day is special founded for the anniversary of the People’s Republic of China, so people across the country will celebrate on October 1st every year. Since 1998, the National Day is the “Golden Week” holiday in mainland China.

Ocean Carrier Consolidation: The 3 Ocean Carrier Shipping Alliances

These 3 carrier alliances represent nearly 80% of global container trade and roughly 90% of container capacity on major trade routes. The main trade lane that is highly affected by this change and the main reason for the new alliances is the North America-Asia: trade lane between the Far East and North America which will represent 96% of East-West trade. 

Trade Routes

The Trans-Pacific trade route is the largest trade route in the world by volume. It is the route between the Far East and North America, mainly dominated by containers hitting US West Coast ports.

The Asia-Europe is the trade route between Asia and Europe (most going to Western Europe) with most vessels going through the Suez Canal.

The Trans-Atlantic trade route is the route between Europe and North America, mainly between Europe and the US East Coast.

Ocean Carrier Alliances

Ocean Alliance CMA CGM, COSCO, OOCL, APL and Evergreen (APL is now owned by CMA CGM)

The Alliance: NYK Group, MOL, “K” Line, Hapag Lloyd, UASC and Yang Ming (UASC has merged with Hapag Lloyd)

2M Alliance: Maersk Line and MSC, with HMM and Hamburg Sud (Hamburg Sud is now owned by Maersk Line).  HMM is not officially in the alliance, but they have slot purchases and exchanges with MSC as well as Maersk.

Weekly Sailings Per Carrier Alliance

“Ocean Alliance” will have 13 weekly services between Asia and the US West Coast, 7 weekly services between Asia and US East Coast and 3 Trans-Atlantic services.

“The Alliance” will have 16 weekly services for the Trans-Pacific trade and 7 weekly services for the Trans-Atlantic trade.

“2M” Alliance, which has a slot agreement with Hyundai Merchant Marine, will have 16 weekly services.  

Non-Alliance Carriers

ZIM Integrated Shipping, Hamburg Sud, Pacific International Lines, Wan Hai Lines, and Matson who also operate on the Asia-North America trade lane will also be options to shippers and NVOCCs to sign contracts. These carriers’ routing are more susceptible to change since they have more agility to move around their vessel rotations and capacities but since they are independent, they can also have less issues with sharing space on their vessels compared to carriers that are in shipping alliances.

 

Stay Informed and In Compliance

As market conditions constantly change so do the laws and regulations governing International Trade.   It is the legal responsibility of the importer to properly declare the value, classification and rate of duty applicable for entered merchandise.  It is also the responsibility of the importer to understand and abide by the latest regulations.

The US Government along with Department of Homeland Security has provided a website which may prove beneficial to the customer importing product to the US.  

Please find following the weblink with additional valuable insight and assistance to anyone importing product from another country.  This site is a great resource for the latest information on specific laws, regulations or procedures that may affect your import transactions. https://www.cbp.gov/trade/basic-import-export

Customs Border Protection (CBP) has a number of Informed Compliance publications (ICPs) in the "What Every Member of the Trade Community Should Know About: ..." series.  The subjects listed are available for reading or downloading depending on the consumers need.  The first date shown is the original publication date.  The subsequent dates, if any, show the revisions.

If you have any questions considering your classifications, documentation or other import questions please give your local South East World Wide representative a call to schedule an appointment.

Qingdao, China – New Dangerous Goods Rule for Classes 1 - 7

Qingdao, China – New Dangerous Goods Rule for Classes 1 - 7

The port of Qingdao (CNTAO) issued a new Dangerous Goods (DG) rule. All dangerous goods classes 1 to 7 will be prohibited for loading, discharge and transshipment. Please consider this new rule for your future bookings.

Cargo already being loaded will be discharged or transshipped until August 31, 2017.

All dangerous goods, except class 1 and 7, will remain permitted for transit Qingdao (CNTAO).

Belongs to

  • Regulations

Geographical Scope

  • East Asia (from/to Americas) - Export
  • East Asia (from/to Americas) - Import
  • Asia and Oceania intra-regional
  • East Asia (from/to Europe) - Import
  • East Asia (from/to Europe) - Export

 

Rulings and Legal Decisions

Rulings and Legal Decisions

U.S.  Customs and Border Protection (CBP) issues binding advance rulings and other legal decisions in connection with the importation of merchandise into the United States. Advance rulings provide the international trade community with a transparent and efficient means of understanding how CBP will treat a prospective import or carrier transaction. 

For example, a ruling letter may address the tariff classification or appraised value of merchandise, the liquidation of an entry, or the exclusion of merchandise from entry. As such, ruling letters facilitate trade by enabling companies to make business decisions that are dependent on how their goods will be treated on importation. 

CBP also issues other binding decisions such as internal advice decisions letters (covering current import and carrier transactions), and protest review decisions (appeals of CBP decisions on completed transactions).

With a view to promoting transparency, CBP also makes available to the public various other guidance including the following: the Customs Rulings On-Line Search System (CROSS – a database of published rulings), the Customs Bulletin and Decisions, pertinent Federal Register Notices, CBP Directives and Handbooks, Informed Compliance Publications, and a summary of laws enforced by CBP. 

For additional information, follow the link: https://www.cbp.gov/trade/rulings

 

Is Your Cargo Insured?

As a shipper we are typically busy controlling the daily challenges of running a business including managing the finances, making new sales, ensuring product is ordered and delivered in a timely manger.   We can get all of this right and forget one important component, Insurance.

One common thing overlooked is properly insuring your product and/or thinking that you are insured when you are really not.   Insurance is not always needed but is often proven to be beneficial should there be any unforeseen incident in the transportation of your product.

Shippers should purchase Cargo Insurance, whether it is for domestic US transit or international shipments that addresses their specific shipping needs, contains the limits, deductibles, terms and conditions that they require. The word "surprise" should never come up, once a loss has occurred.

No matter where you purchase your insurance take the time to understand all of the terms and conditions contained in the policy.

If you have any questions concerning your current insurance coverage, what it would cost to ensure your cargo and/or general insurance questions please give your South East World Wide representative a call to schedule an appointment.

Schedule B and Harmonized Tariff Schedule (HTS)Updated in the Automated Export System

Effective immediately, the Schedule B, Harmonized Tariff Schedule (HTS), and HTS Codes That Are Not Valid for AES tables have been updated to accept the changes to the July 1, 2017 codes. 

AES will accept shipments with outdated codes during a grace period for 30 days beyond the expiration date of June 30th, 2017. Reporting an outdated code after the 30-day grace period will result in a fatal error.
The ACE AESDirect program has been updated with the 2017 codes and will accept shipments with outdated codes during the grace period as well.
The 2017 Schedule B and HTS tables are available for downloading at:
http://www.census.gov/foreign-trade/aes/documentlibrary/#concordance
The current list of HTS codes that are not valid for AES are available at:
http://www.census.gov/foreign-trade/aes/documentlibrary/concordance/hts-not-for-aes.html
For further information or questions, contact the U.S. Census Bureau's International Trade Indicator Micro Analysis Branch.
Telephone: (800) 549-0595, select option 2 for International Trade Indicator Micro Analysis Branch
Email: eid.scheduleb@census.gov
Online: www.census.gov/trade
Blog: http://globalreach.blogs.census.gov

General Rate Adjustment – Trans-Pacific Trade Eastbound from East Asia to US and Canada

Effective Date: August 1, 2017 (date of cargo receipt at origin)

Scope: East Asia to North America (US and Canada)

Effective Date: August 1, 2017 (date of cargo receipt at origin)

Scope: East Asia to North America (US and Canada)

  • USD 800 per 20' standard container (20’ x 8'6")
  • USD 1,000 per 40' standard container (40’ x 8'6")
  • USD 1,000 per 40' high cube container (40’ x 9'6")
  • USD 1,266 per 45' container (45’ x 9'6")

East Asia is defined as being the countries of Japan, Republic of Korea, Taiwan, Hong Kong, China (PRC), Macau, Vietnam, Laos, Cambodia, Thailand, Myanmar, Malaysia, Singapore, Brunei, Indonesia, The Philippines and Russian Pacific Coast Provinces.

Rates may vary.  Please contact your South East World Wide representative to review how this increase will effect your company pricing.