Transpacific Blankings Reach Peak Levels

As reported by Container News, Antonis Karamalegkos Editor, capacity reductions are reaching levels similar to that of Covid-19 restrictions during the 2nd quarter 2020. It is estimated that Transpacific lanes will see approximately 25 void sailings from 28 September (week 40) until 8 November (week 45) with the 41st week anticipated to be the most impacted period.

The shipping alliances intend to blank 13 Transpacific sailings during this period, which translates to 120,000TEU in nominal capacity. That means the specific weekly reduction will reach 22-23% of the current weekly capacity in the region.

Below is the anticipated blank sailing list:

THE Alliance - Hapag-Lloyd, HMM, ONE and Yang Ming

  • Week 40 EC3 China-USEC via Panama 8,500-TEU vessel

  • Week 41 PS4 China - USWC 8,500-TEU vessel, PS8 China - USWC 10,000-TEU vessel, PN3 China-USWC 10,000-TEU vessel, PN4 China-USWC 8,500-TEU vessel, EC2 China-USEC via Panama 9,000-TEU vessel -EC3 China-USEC 8,500TEU vessel

  • Week 42 PS6 China - USWC 9,000TEU vessel

  • Week 43 EC3 China-USEC 8,500TEU vessel

Ocean Alliance - CMA CGM, COSCO/OOCL, EVERGREEN

  • Week 40 PNW1 China-USWC 8,500TEU vessel, GCC2 China-US GULF via Panama 8,500 TEU vessel

  • Week 41 PCC1 China-USWC 8,000-TEU vessel -VCS Cai Mep+NE Asia-USWC 14,000-TEU, PNW2 China-USWC 9,000-TEU -PNW4 5,700-TEU vessel China-USWC -ECC2 China-USEC via Panama 9,500-TEU vessel, GCC1 China-US Gulf 8,500-TEU vessel

  • Week 42 PNW1 China-USWC 8,500TEU vessel

2M Alliance - Maersk Line, MSC and ZIM

  • Week 40 TP-10/ AMBERJACK (11,000-TEU vessel) -  China-USWC

  • Week 41 TP-1/ MAPLE (9,000TEU vessels) - China-USEC via Panama

  • Week 43 TP-10/ AMBERJACK (11,000-TEU vessel) - China-USWC

  • Week 44 TP-1/ MAPLE (9,000-TEU vessel) China-USEC via Panama

  • Week 45 TP-10/ AMBERJACK (11,000-TEU vessel) China-USWC

  • Week 46 SEQUOIA/ China-USWC Long Beach only, 15,000TEU

Please review your shipping criteria during this period and work with your South East World Wide Sales Representative to help minimize the impact this could have on your operations.

Increase in US-CHINA Air Freight Capacity

As reported by American Shipper, the U.S. Department of Transportation has allowed four Chinese carriers to double the number of round-trip flights they operate. Shippers will now have 8 additional flights per week in which to ship cargo on key routes.

Both United and Delta received authorization to double its two times weekly flight services. UA has announced it will operate four weekly flights between San Francisco and Shanghai Pudong International Airport via Seoul, South Korea, beginning Sept. 4. Beginning August 24, Delta said it would add a weekly flight from Detroit and Seattle, both to Shanghai.

Currently, four Chinese carriers are operating flights to the U.S.; Air China, China Eastern, China Southern and Xiamen Airways. China Southern advised that it plans to operate an extra flight between Guangzhou and Los Angeles beginning Aug. 20 and ending Oct. 25.

For more information on flight availability, pricing and booking air freight shipments between China and the US, please contact your South East World Wide, Ltd. Sales Representative.

Full article can be read here.

Enhance Your Bottom Line-Monitoring Your Container Size

With the current economic situation everyone is looking at how they can increase their bottom line.  One way of doing this is by understanding and monitoring your container sizes.  By maximizing the cube, or capacity on a container, you can reduce your overall cost per cube thus resulting in improved margins on the product. 

Where possible the use of high cube (HC) containers will accelerate the savings opportunities over the utilization of 40-foot standard containers. 

Depending on your commodity there is the opportunity to load at least 20 percent more product in a 40-foot HC versus a 40 foot standard container (66 CBMS vs. 55 CBMS). 

If you have multiple containers from the same factory, you would be an excellent candidate to consider utilizing a bigger container and reduce the annual quantity of containers and therefore reducing your cost per cube. 

If you had 200 containers and went from 100 percent 40 foot containers to 70% HC and 30% 40 foot containers you could potentially realize a substantial savings in the ocean freight costs.  There would also be a cost savings on the dray cost due the fact that you would be moving fewer containers.  Additional benefits would be less man hours required for PO’s written, tracking, scheduling appointment etc… 

Our goal is to keep our customers informed.  If you feel that this may be an opportunity for your company please give your local South East World Wide, Ltd. Sales Representative a call or email.

bigstock--173968465.jpg

Sincere Thanks and Gratitude

These certainly are unprecedented times we are living in. Every day we are overwhelmed with doom and gloom of how the Covid-19 Pandemic is affecting us emotionally, physically, mentally and financially. It is certainly a time we will never forget. Through it all, we are fortunate and thankful for all the First Responders, healthcare workers, food service and grocery staff and of course, supply chain professionals; ocean vessel and air carrier staff, port workers, truckers, and distribution facilities who are either working remotely and/or are having to risk their physical safety daily, to keep our goods and supplies moving, all to help us sustain a resemblance of a normal life.

I want to extend Sincere Thanks and Gratitude to the South East World Wide, Ltd. team and our partners Worldwide for the dedication and unwavering support. We move goods all over the globe. Each day you are faced with new challenges and a logistical landscape that, in some regions, changes by the hour and even still may be unclear. You all work tremendously hard to support each other and the needs of our clients without despair. It is with great pride that I get to work with such a remarkable team of professionals.

Lastly, but certainly not least, I’d like to thank all of our amazing customers for their understanding, patience and trust in us during this difficult time. It is our overall objective to provide you consistent and reliable support now and into the future.

Wishing you all safe and healthy days ahead.

Thank You,

Paul Salgado

President

Invocation of Force Majeure Pursuant to Covid 19 Pandemic

Dear Valued Clients,

We know how difficult this time can be for all aspects of our lifestyle and livelihoods.  We stand in solidarity with you in such trying times due to the COVID -19 pandemic.  We pray for the well-being of you, your colleagues and loved ones.

All our departmental teams are/have been working remotely.  Like others in our industry and beyond, all our services have been impacted in such extraordinary times when the situation is totally beyond anyone’s control.

We have been impacted both locally and globally because of public transports off the roads, imposition ‘stay at home’ orders, unavailability of vendors, labor force and restricted/ limited functioning of many of the other services. Some sea/airports, cargo terminals, airlines and shipping lines have declared “Force Majeure” which was inescapable.

Our company also invokes “Force Majeure” for all our freight forwarding/warehousing/clearance/ custom house/ vessel space booking and all the related services as a Freight Forwarder/ Agent.

This has been declared a pandemic catastrophe and as an entity with both import and export operations with numerous other parties, we have no choice. South East World Wide, Ltd. shall not remain therefore liable/responsible for non-fulfillment of any services expressly or implicitly agreed upon under any existing/ongoing agreement during such period or any extension of this period under our declaration of “Force Majeure”. During such period and any extension thereafter (if any), we shall not remain liable for any damages, delay, compensation, related costs and charges etc. since the situation happens to be totally beyond our control.

We assure all our valued customers that South East World Wide, Ltd. remains committed to provide you with a seamless service as far as possible despite being within such difficult times subject to the declared “Force Majeure”.

If you have any questions regarding this or any other service, please contact your South East World Wide, Ltd. Sales Representative.

With Sincere Thanks and Gratitude,

South East World Wide, Ltd.

Impact of Covid-19-Escalation Continues

The impact of Covid-19 on business and global financial markets is unprecedented. What was considered a ‘China Problem’ only a couple months ago has disrupted, to say the least, all lives on virtually every continent.

Just as quickly as the the effects of the disease has spread, that is how quickly things are changing in the supply chain. Literally circumstances are change hourly. All SEWW locations and affiliates are operational and supporting all aspects of the supply chain.

Here is a current, albeit brief, overview of what is happening in our field of service. Note, some locations are more organized than others on how the government in each country is handling the situation:

CHINA: All operating normally. Container availability is tight due to lack of containers returning but mechanisms are in place to keep things moving.

BRAZIL: Essential services, such as logistics are operational. Operations personnel working from home. There are delays in management of information from carriers as well as with scheduled sailings.

INDIA: All ports are operational. Customs and Port staff are at 5%, so sailing delays are expected. Essential services are open and functioning. Country wide quarantine on non-essential goods and services until April 14. Some ICD’s are shut, more clarity is still required. Operations personnel working from home.

ITALY:  All ports are operational. All business/factories that produce NON-LIFE-ESSENTIAL GOODS, are closed until April 6 or further notice. There are some exceptions, please communicate with your supplier contact to confirm their operations. Operations personnel working from home.

PORTUGAL: All ports are operational. Operations personnel working from home. There are delays in management of information from carriers as well as with scheduled sailings. Additionally, at the moment there is a potential for truck shortages due to empties not returning to Portugal. Carriers are only making available trucks for export with cargo guarantee back to Portugal or, alternatively, the collection of the value on the export that guarantees the empty return of the truck to Portugal. Please plan accordingly.

SPAIN: All ports are operational. Operations personnel working from home. There are delays in management of information from carriers as well as with scheduled sailings.

THAILAND: All operating normally. Container availability is tight due to lack of containers returning but mechanisms are in place to keep things moving.

TURKEY: All ports are operational. Operations personnel working from home. There are delays in management of information from carriers as well as with scheduled sailings.

UK: All ports are operational. All business/factories that produce NON-LIFE-ESSENTIAL GOODS, are closed until April 6 or further notice. There are some exceptions, please communicate with your supplier contact to confirm their operations. Operations personnel working from home.

VIETNAM: Essential services, such as logistics are operational. Operations personnel working from home., things are moving but slowly.

As noted, some regions are experiencing container shortages. Some of the carriers have started to impose Container Imbalance Surcharges in the neighborhood of $300/Ctr. Additionally, IMO2020 and Fuel continues to fluctuate monthly..

Know we are here to help. Please contact your South East World Wide, Ltd. Sales Representative to discuss planning and operations to better manage your supply chain under these difficult circumstances.

 

Impact of Covad-19: Coronavirus Container Impact

The full impact of the Coronavirus is yet to be seen. As reported by Lars Jensen at JOC.com on February 25, 2020 and summarized here, the outbreak of Covad-19 will have a series of incidental challenges facing the container shipping industry on many fronts. It all started with the failure of Chinese factories coming back online after Chinese New Year. This caused a major drop in Chinese exports with caused a drop in overall container demand. This caused carriers to cancel numerous sailings. The blank sailings are estimated at removing a demand of 1.7 million TEU. This will in turn cause, no pun intended, but a boatload of export blank sailings for cargo back to Asia. All the while, the pre-CNY push left empty containers around the globe. These will be hard pressed to get back to China for loading. The reduction of cargo back to Asia will likely push up rates.

If things go well, China will come back on line quickly, and this will cause a surge in demand for China exports once again. Now this new demand will be impacted by the lack of equipment. A short term resolution will be for China to order new containers to manage this push which positions the industry for possible surplus in the long haul. And this, is only taking into consideration of Dry Cargo, with Reefer cargo adding to the challenges.

Additional elements in the supply chain that will need to be contemplated are port congestion, hampered customs/import operations, inland haulage demand, chassis equipment, etc.

All we can hope for at this time is that the coronavirus subsides quickly and that the individual pitfalls noted about will be short lived. Regardless of how the coronavirus or the remainder of 2020 plays out, you can count on South East World Wide, Ltd. to aid and assist you along the way!

If you have any questions on how your lanes may be affected, please feel free to contact your South East World Wide, Ltd. Sales Representative.

Section 232 Tariffs on Steel and Aluminum-Update

On January 24, 2020, a Presidential Proclamation was released indicating additional tariffs are on the horizon for certain derivative articles of Steel and Aluminum Imports.  

The tariffs imposed on steel and aluminum will now also apply to the derivatives of aluminum articles and steel articles described in Annex I and Annex II. The additional tariff will be effective February 8, 2020. It will apply to aluminum derivatives from all countries except Argentina, Australia, Canada, and Mexico and steel derivatives from all countries except Argentina, Australia, Brazil, Canada, Mexico and South Korea.

It is important to note, that at the time of this posting, nothing official has been published in the Federal Register nor any advise has been provided by CBP.

Please refer to this site for further updates or feel free to contact your South East World Wide, Ltd. Sales Representative for further discussion.

United States and China: Phase One Economic and Trade Agreement Signed

Section 301 Tariff: List 4A & List 4B 
On January 15, 2020, the USTR issued a notice reducing the rate of additional tariffs on List 4A products to 7.5%, effective February 14, 2020. Goods on List 4A are currently subject to a 15% additional tariff, effective Sept. 1, 2019.

The 15% tariffs on List 4B are suspended, per the following Federal Register notice.

For further information regarding this and other Section 301 Tariff questions, please contact your South East World Wide, Ltd. Sales Representative.

Cargo Insurance: Is Your Cargo Insured?

Shipwreck.jpg

With this dreadful incident occurring off the coast of Mumbai, it beckons us to ask ourselves, ‘Is our 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 manner.   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 any other questions please contact a South East World Wide Sales Representative to schedule an discussion.

2020 Holiday Schedule-Days of Observance

For 2020, the following holidays will be observed and our USA offices will be closed on the Observance Day noted:

January

  • New Years Day Observed January 1, 2020

February

  • Presidents Day Observed February 17, 2020

May

  • Memorial Day Observed May 25, 2020

July

  • Independence Day Observed July 3, 2020

September

  • Labor Day Observed September 7, 2020

November

  • Thanksgiving Day Observed November 26, 2020

December

  • Christmas Day Observed December 25, 2020

China Holiday Preparation-CNY 2020 "Year of the Rat"

Chinese New Year ‘YEAR OF THE RAT’ begins January 25, 2020 and will last for 15 days.

If you have not done so already, please plan and prepare for space/shutdown related issues prior to the 25th and for slow return after.  Customers should advise their Production Schedule and pre-book their freight to ensure space is secured.

South East World Wide is committed to keeping our customers informed and updated with any breaking news relevant to logistics.  We will continue to keep you posted on any future updates as it relates to international logistics.

If you have any questions concerning how the upcoming holidays may impact you and/or your business please give your local South East World Wide, Ltd. Sales Representative a call.

USTR Announces New Exclusions: List 1 and List 3 Goods from China

The Office of the U.S. Trade Representative released additional exclusions on products from China that have been subject to List 1 and List 3 Section 301 tariffs.

The List 1 exclusion covers products classified under 9030.90.4600. They are retroactive to July 6, 2018 and will be valid through October 1, 2020. 

To read the List 1 exclusions as noted in the Federal Register, click HERE.

The List 3 exclusions cover 35 different product descriptions and discuss 75 exclusion requests. They are retroactive to September 24, 2018 and will be valid through August 7, 2020. 

To read the List 3 exclusions as noted in the Federal Register, click HERE.

Section 301 Tariffs on Goods from China: List 4B Tariffs Suspended

A Federal Register notice was issued late today, 12/13/2019, that the 15% tariffs on List 4B are suspended until further notice and will not go into effect on December 15, 2019. Furthermore, the USTR will issue a notice detailing the reduction of the rate of additional tariffs on List 4A products "in the near future". 

The Federal Register will published details officially on 12/18 but an unpublished version is downloadable here.

United States and China Reach Phase One Trade Agreement

As announced by the USTR today, the United States will be maintaining 25 percent tariffs on approximately $250 billion of Chinese imports (List 1, List 2 and List 3). The additional Section 301 tariffs on List 4A products will be reduced to 7.5% and the tariffs on List 4B products will not be imposed on December 15. However, this news is still evolving and no OFFICIAL notice has been published in the Federal Register yet.

The full release by the USTR here.

As news develops, we will post updates here.

USTR Proposes Additonal 301 Tariffs on Goods Imported from the EU

Tariffs on goods imported from the European Union countries could be increased 100%. The USTR has requested comments on the possible changes are due by Jan. 13.

The Office of the U.S. Trade Representative has published review of Docket No. USTR-2019-0003. Annex I to this notice contains a list of products currently subject to additional duties. Annex II contains a list of products, originally published in the April 2019 and July 2019 notices in this investigation, under consideration for the imposition of additional ad valorem duties of up to 100 percent. The Office of the United States Trade Representative (USTR) requests comments with respect to whether products listed in Annex I should be removed from the list or remain on the list; whether the rate of additional duty on specific products should be increased up to a level of 100 percent; whether additional duties should be imposed on specific products listed in Annex II; and on the rate of additional duty to be applied to products drawn from Annex II.

You can find full notice and commodities under review here.

USTR Releases Additional List 3 Exclusions on Section 301 Tariffs on Goods from China

On November 26, 2019, the USTR released additional List 3 Exclusions; Notice of Product Exclusions: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation.

This notice announces the U.S. Trade Representative’s determination to grant certain exclusion requests, as specified in the annex to this notice. The product exclusions announced in this notice will apply as of the September 24, 2018, effective date of the $200 billion action, to August 7, 2020. Refunds will be retroactive.

For a full listing of the exclusions in this release, click here.

Happy Holidays!

A time to reflect on what’s important:

As we approach the Holiday Season, we recognize that it’s a time to reflect on the many things we have to be thankful for.  It’s also a special time to spend with family and friends. 

All of us at South East World Wide, Ltd would like to take this time to Thank You for your friendship, patronage and continued support.

May PEACE be with you and your family during this special season and throughout the New Year. 

Please note that our offices will be closed Thursday November 28th, 2019 in observation of Thanksgiving.

Also note, for future planning, our offices will close early on Christmas/New Years Eve and be closed on Christmas/New Years Day.

As many will be taking time off early to visit family and friends please let us know if you have any urgent inquiries or shipments that you may require assistance with prior to the holidays.

 

Happy Holidays!

Improving Cashflow-Direct Duty Payment Options

Direct Duty Pay Options: Periodic Monthly Statement and Daily Statement Pay

By enrolling in Periodic Monthly Statements, an Importer can be granted up to 50 days (float) from the shipment date to pay the statement in full.

The Periodic Monthly (PM) Statement simplifies the processing of duties, taxes and fees for importers with Automated Commercial Environment (ACE) accounts. ACE allows duties, taxes and fees to be paid on a monthly basis. 

Importers participating in the PM Statement are extended credit similar to a bank extending credit. A PM Statement will be issued to an Importer on or near the 15th business day of the month for shipments released during the prior month. Generally, payment will be due within 7 days of receiving the statement.

Benefits of a PM Statement

·         Improve Cash Flow

·         Preliminary Summary to estimate monthly cash flow needs

·         Simplified Tracking of Duty Owed

·         Entry Summaries and Statements available Electronically and in Real Time

PM Statement Requirements

Payment of duties and fees through CBP’s ACH payment program

Daily Statement Pay:

Alternatively, you can sign up for ACH Daily Statement Payment and be granted 10 business days to pay duty on entries filed on any given day.

According to U.S. Customs and border Protection (CBP), all Importers will eventually be required to use ACE to pay duties, taxes and fees. Some sureties may apply a premium surcharge for perceived additional risk. 

If you are interested in learning more about these programs and how it can benefit your company, please contact your South East World Wide, Ltd. Sales Representative to discuss.