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 | Senate also passes Miscellaneous Trade Bill |
Update to the July 22nd House Approves Miscellaneous Trade Bill TradeWatch
July 28, 2010 - On Tuesday, July 27, 2010, the Senate passed the House version of the U.S. Manufacturing Enhancement Act (a.k.a. the Miscellaneous Trade and Technical Corrections Act of 2009 -MTB). The final hurdle for enactment will be for the President to sign the bill into law. The new provisions are set to expire December 31, 2012.
Fifteen days after enactment, importers may apply for retroactive duty treatment for expired provisions for goods entered or withdrawn from the warehouse on or after January 1, 2010. This request MUST be made within 180 days after enactment date, properly filed with Customs and Border Protection (CBP), and is to contain all necessary information to allow CBP to make the refund. This may include any specific language (if provided/published by CBP), or specific requirements. In order to allow CBP to locate the entry or withdrawal, consideration should be given to including a copy of the entry documentation with each refund request. This may serve to expedite your refunds which are to be paid, without interest. Classification changes based on Chapter 99 numbers should be communicated to your customhouse broker in order that the duty free provisions are applied to current and future entries.
Some of the commodities covered are loudspeakers, bicycles, yarns and fibers, footwear, and chemicals/chemical products.
For more information, please contact:
 Click here to review the original TradeWatch advisory on the House Approving the Miscellaneous Trade and Technical Corrections Act of 2009
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| Logistics to iron out delays
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July 27, 2010 - Asia - Logistics managers should find ways to get shipments moving as US importers are noticing more delays in getting their goods out of Asia.
This is a problem as retailers are trying to keep inventories lean and costs down, but are unable to as it is becoming crucial to increase spend to avoid congestion or speed up movement.
A shipping date missed from Southeast Asia or the Indian subcontinent will cause Chinese manufacturers to delay production, says an article in the Journal of Commerce.
In addition, slow-steaming and container shortages are adding more shipping time to the trans-Pacific route.
This will create a challenge for logistics managers as they find ways to place goods in retail stores on time.
Retailers are now paying more for added warehouse shifts, accelerated shipping and transloading options in order to keep their goods moving.
To combat the problem, David Hargreaves, CEO of toy manufacturer Hasbro says the company has "put additional container capacity and shipping capacity in place and is encouraging retailers to take in more product, and to do so earlier".
By Kristie Thong
Procurement Asia
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Congestion Returns to Rotterdam | |
Feeder lines eye surcharges to cover costs caused by delays
July 21, 2010 - Feeder operators are considering introducing congestion surcharges in response to delays at some of Northern Europe's busiest container terminals. Unifeeder said ships on its Baltic and Scandinavian services were facing delays at the Euromax, ECT Home and ECT Delta terminals in Rotterdam and, as a result, it was considering introducing a surcharge from 1 August. "The situation, which is caused by a lack of manpower and increased volumes, combined with delayed ocean liners, is causing peaks at terminals that are exceeding their capacity," Unifeeder said. "Consequently, we are experiencing delays beyond 36 hours, as well as short-shipments on our Scandinavian and Baltic services. The performance of the terminals has prevented us from maintaining our planned schedule." As a result, Unifeeder said it had experienced a loss of revenue and faced additional operational costs as a result of "vessels laying idle in Rotterdam". Unifeeder added: "We cannot absorb the extra costs for feeder vessels arising from this unfortunate situation. Consequently, if this situation continues, we will implement a congestion surcharge from 1 August." Team Lines said it had also been experiencing congestion at Rotterdam, which had delayed some of its services by one to two days. It said: "As a consequence of rising volumes and a shortage of labour, Rotterdam terminals are currently congested during peak times. "Accordingly, the Team Lines services are partly facing operational bottlenecks. Team Lines is working on a recovery scheme for the vessels concerned and hopes to bring them back on schedule in due time." Unifeeder also recently warned that it may also have to increase prices because market conditions were increasing its costs. It said vessel charter rates were increasing - by around 50% over two months - and delays caused by congestion were resulting in extra bunker fuel consumption. "These challenges and demands have affected the industry as a whole, and if it continues it will lead to further cost increases," said the line. "Thus, as we have not evaded the impact, we see ourselves forced to also seek cost recovery from our customers."
International Freight Weekly
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| Indian Port Congestion Causes Severe Delays | |
July 23, 2010 - Shippers and ocean carriers in the trades to and from the Indian subcontinent are bracing for difficult times as congestion cripples operations at some of the busiest container ports in the region.
While the situation at India's Port of Nhava Sheva (Jawaharlal Nehru), which has been confronted with serious yard congestion and rail delays in recent months, is gradually returning to normal traffic levels, severe terminal congestion at Sri Lanka's Port of Colombo and Bangladesh's Chittagong is wreaking havoc on normal cargo flow and vessel sailing schedules.
"All mainline and feeder vessels calling at Colombo are experiencing delays due to increased berthing times. The congestion is particularly affecting transshipment cargo from India, Bangladesh and Pakistan as it is largely routed through Colombo," a shipping line agent reported from Colombo.
Persistent delays recently forced Zim Integrated Shipping Services to suspend calling Colombo on its independently-operated Asia-Mediterranean-Europe Service until further notice, in a bid to maintain its fixed-day berthing window at Nehru.
"Colombo Port has bitten off more than it can chew. More services at the port are creating a mess. We have written to the Sri Lankan Port Authority to clear the backlog. They are creating more space for idling containers," a senior Shipping Corp. of India official said.
According to local shipping circles, the situation is aggravated by a chronic shortage of handling equipment, and recent problems in "inter-terminal trucking" after the authority appointed a new private contractor for such operations, leading to legal disputes and work-to-rule slowdowns.
"In a nutshell, feeder vessels are being delayed in berthing, and containers are then getting delayed in transfer between feeders and connecting mother vessels," a leading feeder operator said.
Colombo's box traffic for the January-May period rose 27 percent to 1.68 million 20-foot equivalent units from 1.32 million TEUs on a year-on-year basis.
To alleviate congestion problems, SLPA is developing a 22-acre logistics park around the port area and expanding terminal capacity with the proposed South Harbor and Hambantota port projects.
The congestion at Chittagong, Bangladesh's main gateway port, is mounting so rapidly that shippers are in a quandary over contractual commitments.
"The congestion is so severe that not a single vessel has been able to maintain its originally planned schedule in recent weeks. Ocean carriers are also experiencing severe space and equipment shortages adding to the already extreme situation," said freight forwarder Milgram & Company.
A representative of the Bangladesh Garment Manufacturers and Exporters Association said cargo handling at the port is being delayed by an average of 10-11 days compared with 2-3 days a couple of months ago.
The operational disruptions and delays, which have been attributed to increased labor union activities and an acute shortage of containers, prompted carriers to impose congestion surcharges on all export and import cargo handled at Chittagong. Hapag-Lloyd on Friday said it plans to raise Chittagong surcharges from the current $100 per TEU to $200 per TEU, effective Aug. 16, citing increased feeder costs.
Slowly but steadily, containers are piling up at smaller Indian ports too, such as Tuticorin, Chennai and Kolkata, amid surging cargo volume and inadequate infrastructure. Container volume at major Indian ports for the April-June quarter increased 17 percent in the April-June quarter to 1.9 million TEUs from 1.6 million TEUs in the year-ago period.
The Journal of Commerce
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| Abu Dhabi port box volume dips, general cargo | |
July 27, 2010 - Slowed property development in Abu Dhabi hit container traffic at Port Zayed in the first half of the year but cargo volumes rose, helped by infrastructure projects and higher vehicle imports, a senior port official said, according to Reuters.
The port handled 206,866 containers, down seven percent, and 2.98 million tonnes of general cargo, an increase of 12 percent, said Julian Skyrem, acting chief executive of Abu Dhabi Terminals.
There was a 62 percent jump in vehicles handled, rising to 32,177 from 19,809.
Skyrem declined to give forecasts for the full year.
Abu Dhabi is the capital of the United Arab Emirates, where fallout from the global financial crisis has put an end to a six-year construction boom.
"We are seeing the effects of the reduction in construction activity that led to the slight dip. However, industrialisation in Abu Dhabi is having a positive effect," Skyrem told reporters.
Abu Dhabi is investing billions of dollars in industry, infrastructure and tourism to diverisfy its economy.
Home to most of the country's oil, it has fared better than other emirates such as Dubai.
Abu Dhabi Terminals is managed by DP World, which has been ringfenced from asset sales by parent firm Dubai World now grappling with a US$23.5 billion debt restructuring at the heart of the emirate's recent woes.
The port has a total capacity to handle 650,000 TEUs and 7.5 million tonnes of cargo.
It is expected to gradually shift operations to the new, larger Khalifa port in Taweelah beginning in the fourth quarter of 2012.
Cargonews Asia
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| Brazil Shippers Eye Landed Costs |
July 23, 2010 - A survey of Brazilian shippers found most are focused on reducing total landed costs on imports.
The survey, conducted by Philadelphia-based third-party logistics firm BDP International, found that seven out of 10 respondents cited total landed costs of imports into Brazil as their greatest challenge. These costs include purchase price, freight transportation, insurance and other inbound logistics costs to the port of destination, plus customs duties and other taxes on shipments.
"As Brazilian companies become part of the regional and global supply chains, they increasingly are looking to reduce the landed cost of their imports and speed their delivery to markets here," said Roberto Croce, BDP's general manager in Brazil, in a statement.
The companies surveyed appear to be placing more emphasis on reducing overhead as they turn to logistics firms to better control inbound shipments and ensure compliance with complex import regulations that can impede cargo clearance and incur punitive penalties for documentation irregularities.
"Recognizing the impact of the total landed costs of imports on their profitability and competitiveness, many Brazilian companies are transferring both the process and accountability for import documentation and compliance penalties to third-party service providers," Croce said.
The survey found that more than 60 percent of respondents are increasingly outsourcing their transportation-related functions, with nearly half reporting greater outsourcing of logistics management support as well.
"This trend was already underway prior to last year's global financial crisis, but economic conditions clearly accelerated it as companies refocused on their core businesses, and turned to external resources for their non-core activities," Croce said.
Brazil endured the global economic recession better than the United States and Europe, mostly due to a vibrant intra-regional trade. Although the surveyed shippers source product from all over the world, 70 percent export primarily to other Latin American countries.
"Though its trade agreements with other Latin American countries as well as China and other countries in Asia, Brazil has managed to make significant progress in reducing its reliance on North America and Europe, insulating itself from the economic volatility affecting those relatively mature markets," Croce said.
The survey found concerns among 90 percent of the shipper logistics managers respondents over Brazil's infrastructural readiness for the 2014 World Cup and 2016 Summer Olympics. Many raised doubts that much needed improvements will be finished in time to accommodate the business and consumer demands of these major national events.
"However it should be noted that our Growth Acceleration Programs, while somewhat behind schedule, are injecting BRL 60 billion ($35 billion) into infrastructure upgrades," Croce said. "We're admittedly in catch-up mode, but I'm quite confident that a number of the major projects will be completed in time for these events."
The BDP survey was conducted by online questionnaire and distributed to 350 supply chain professionals. About 11 percent responded. Of those, 41 percent were in the chemical industry with the balance representing other industry sectors. More than 80 percent of the respondents are engaged in both imports and exports. Nearly 70 percent use ocean transport most frequently, compared to 22 percent who use primarily air transport. Over half the respondents worked for companies with annual revenues of more than $500 million.''
American Shipper
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| Conclusion of the First Two Mutual Recognition arrangements by Singapore Customs | |
July 23, 2010 - Singapore Customs signed our first two Mutual Recognition Arrangements (MRAs) with the Canada Border Services Agency (CBSA) and the Korea Customs Service (KCS) on 25th June 2010, during the 115th/116th World Customs Organization Council Sessions held in Brussels, Belgium. Several other MRAs were also signed amongst other customs administrations at the same sessions. The inking of the two MRAs signifies the mutual recognition of supply chain security programmes, namely: Singapore's Secure Trade Partnership (STP) programme with Canada's Partners Protection programme and Korea's Authorized Economic Operator programme. The MRAs are expected to be operationalised in early next year. Specific detailed on the operational procedures will be communicated to the trade closer to the implementation date. Through the MRAs, exports by companies under the STP programme will be assessed to be of lower risk by the CBSA and the KCS, leading to a less likelihood that the goods will be checked at the importation. Companies could therefore better predict the movement of their goods and can enjoy savings that may otherwise be incurred due to delays at ports. The MRAs could also help to facilitate secure trade flows in a situation of high alert or when international trade has been severely disrupted. Information on STP and application procedures is available on: http://www.customs.gov.sg/leftNav/trad/Supply+Chain+Security.htm Singapore Customs
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| Christmas is coming early |
July 15, 2010 - The Christmas peak is expected to come earlier than ever in 2010, so retailers need to ensure their supply chains are prepared, according to OPS Logistics Consultancy.
The early peak will come as a result of the emergency budget and forthcoming VAT rise - the potential affect this will have on supply chains has been outlined by the consultancy in a new white paper.
"Retailers need to start planning now if they are to take advantage of both the opportunities and challenges the VAT rise will bring, and this is likely to have a major impact on the logistics sector," said Dan Derry, managing director of OPS.
"With the tax changes occurring in the middle of the peak, (note: peak is October to early December; VAT is not until January) this will not only encourage the consumer to buy earlier this year to beat the rise but also create spikes in the demand to put increased pressure on the supply chain."
The paper suggests trends show that consumers tend to avoid paying extra tax by buying large ticket items before any tax increases, such as the 2.5 per cent rise in VAT chancellor of the exchequer, George Osbourne, earlier this year.
As the increase is planned for 4th January 2011 this will coincide with the Christmas peak and cause unusual buying habits to occur.
The paper explains that in order to meet this change, businesses need to ensure their supply chains have the flexibility to meet future challenges.
OPS has urged companies to review their entire supply chain to ensure they have the best value for money approach and can ensure customer satisfaction, while being able to adapt quickly to a changing economic climate.
However, Derry added: "The biggest challenge this year is not only coping with an unusual peak but also the subsequent slump.
"Post Christmas can always be a hit or miss affair, depending upon sales and consumer response, but this year we predict it to be quieter than normal, as consumer spending habits change in line with the effects of the budget and because people have less disposable money available.
Therefore, logistics operations need to be planning ahead and be proactive to find alternative uses for supply chain resources or looking where infrastructures can be streamlined."
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| Shanghai port throughput up 18.8% in first half 2010 | |
July 21, 2010 - Container throughput at Shanghai, China's biggest port, climbed 18.8 percent to 13.86 million TEUs in the first six months of this year compared with 11.67 million TEUs in the same period in 2009, and whole-year performance is expected to exceed previous estimates with global trade gradually recovering.
The city handled a total of 211.5 million tonnes of dry bulk goods, a 24.8 percent advance from the same period a year ago, the Shanghai Daily reported.
Waigaoqiao port remains the busiest port in the country with dry bulk cargo throughput climbing 16.5 percent to 67.4 million tonns. Container volume was up 13.5 percent to reach 7.2 million TEUs over the first six months.
Container throughput at the Yangshan Deep-Water Port rose 30.6 percent to 4.7 million TEUs after the Shanghai government's preferential policies attracted shipping companies to use the port as a transfer hub.
"Growth at domestic ports in the second half may not be as strong as the first half and in the long run the growth rate will be between 10 to 15 percent," Bank of China International's Du Jianping wrote in a report.
"Government policies as well as the economic situation of surrounding markets will also have an impact on their performances," he added.
PostTime
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China Southern Airlines to open two air cargo routes in late July | |
July 19, 2010 - China's largest airline company by fleet size China Southern Airlines will open two new air cargo routes in late July.
China Southern Airlines took the delivery of two Boeing (NYSE:BA) 777-200 freighters recently, which increased the size of its freight aircraft fleet to six, including two Boeing 747-400 freighters, and four Boeing 777-200 freighters.
One of the new air cargo routes is from Shanghai to Amsterdam with stopover at Vienna, and the other is from Guangzhou to Amsterdam.
The airline company first placed orders for Boeing 777-200 freighters on December 3 last year, a key step forward in its cargo development plans.
The airline will take delivery of another Boeing 777-200 freighter in late August, becoming China's largest Boeing 777 freighters operator.
Its June cargo and mail transportation surged by 35.60 percent year on year, to 84,680 metric tons (tonnes). Its overall load factor climbed 4.70 percent to 68.2 percent in the month.
In the first half year, China Southern carried 512,020 tonnes of mail and cargo, up 37.7 percent year on year, and its general load factor was 67.70 percent in the six months, up 4.10 percent year on year.
iStockAnalyst
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Taiwan's Exports to China & HK Hit Record High of US$56.75B in First Half
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July 15, 2010 - Taipei, July 15, 2010 (CENS)--Taiwan`s reliance on China as an export market has been growing, with exports to China and Hong Kong reaching US$56.75 billion in the first half, a record high, according to the statistics released by the Ministry of Finance (MOF).
From January to June the exports to China and Hong Kong took a lion`s share of 43% of the total, with the export value jumping 61.9% relative to that of last year, the highest growth of its kind.
In the first six months Taiwan`s exports to the six members of ASEAN (Association of Southeast Asian Nations) came to US$19.78 billion; while that to the United States, Europe and Japan totaled US$14.43 billion, US$13.72 billion and US$8.57 billion, respectively.
Lin Li-chen, director of the Department of Statistics under MOF, said that the EU debt problem will not impact Taiwan`s exports due to modest volume compared to other major nations`, with Taiwan focusing on only Germany and Holland.
However, Lin indicated that China may be impacted by the EU debts for shipping massive exports there, with Taiwan also suffering the ripple effect since China is Taiwan`s largest export outlet.
Taiwan`s total exports enjoyed a sharp annual growth of 49.2% in the first half and South Korea, Taiwan`s major trade rival, saw the corresponding percentage stand at 35%.
CENS News
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| WSC, U.S. shippers meet on EU 24-hour rule | |
July 23, 2010 - The World Shipping Council on Thursday conducted an information session for U.S.-based shipper and forwarder trade associations regarding the European Union's new customs cargo security filing requirements.
The EU rules are to enter into force Jan. 1 and will require the documentation of containerized cargo shipments arriving in European ports to be electronically filed with European customs authorities no later than 24 hours before vessel loading.
"The WSC and its member companies have been working on the many issues involved in the establishment of this new regime for the last several years," said Chris Koch, president and chief executive officer of the Washington, D.C.-based council, in a statement. "The implementation date is now less than six months away. While carriers are aware of and preparing for these new filing requirements, it is important that shippers and forwarders around the world understand that they too will have to adjust their business processes in order to ensure compliance with the new rules.
"Our ocean carrier members felt it was important to proactively engage the shipper community and address questions or concerns well in advance of the effective date. All shippers and exporters, whose goods arrive in the European Union for importation or transshipment or simply to stay on board the vessel en route to another destination, will be affected. The liner shipping industry decided to begin outreach efforts outside of Europe by meeting with these U.S. organizations that collectively represent thousands of businesses engaged in European commerce."
The meeting was attended by representatives from the National Industrial Transportation League, American Association of Exporters and Importers, Agricultural Transportation Coalition, National Customs Brokers and Forwarders Association of America, National Retail Federation, Retail Industry Leaders Association and the U.S. Chamber of Commerce.
"Shippers and forwarders will have to make changes under these new rules, much like the process changes they initiated when the U.S. implemented its 24-hour rule," said NIT League President Bruce Carlton.
"We appreciate the World Shipping Council's efforts to get the word out on this issue, and to help us provide our members with a good understanding of what will be required."
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| Cargo Therft by Gangs increased in 2010 |
Losses rose 5 percent in first six months as thieves seek larger payoffs June 22, 2010 - U.S. cargo theft losses rose 5 percent in the first half of 2010, apparently because of increased activity by criminal gangs, FreightWatch International USA said in its Bi-Annual Cargo Theft Report.
Cargo theft gangs are seeking larger payoffs per theft, with an increase in multi-trailer theft incidents, FreightWatch said.
"After a significant spike in cargo theft activity in 2009, we expected theft rates to level out somewhat in 2010," said Ron Greene, general manager of FreightWatch International USA. "What we are witnessing, however, is a more targeted approach by cargo thieves, seeking multi-trailer thefts and large-scale warehouse burglaries, including the largest loss on record."
That loss resulted from the burglary of pharmaceuticals with an estimated wholesale value of $76 million from an Eli Lilly warehouse in Enfield, Conn., in early March.
Overall losses from warehouse burglaries from January through June were $102 million, compared with $38 million in the first half of 2009. Despite the $76 million theft from the Lilly warehouse, average losses from pharmaceutical thefts were $5.8 million, compared with $7.4 million in the first half of 2009.
Food and beverages were the most commonly stolen cargo, accounting for 93 theft incidents, or 22 percent of the total, with an average loss of $136,000. Electronics was second at 19 percent (74 incidents with average loss of $406,000. Meat products, canned beverages (sports drinks, energy drinks and juices), and raw products (such as sugar and coffee) were the most commonly stolen products in the food and beverage commodity category.
Journal of Commerce
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| Air cargo continues stellar growth | |
July 28, 2010 - The International Air Transport Association (IATA) announced international scheduled traffic statistics for June which showed continued strong demand growth as the industry recovers from the impact of the global economic crisis. Compared to June 2009, international scheduled freight traffic showed a 26.5% improvement.
Capacity increased only slightly above demand improvements during the month, keeping load factors in line with historical highs at 53.8%.
The rate of growth fell from the 34.0% recorded in May 2010. According to IATA, May was exceptionally high as some interrupted traffic from April's ash crisis shifted to May. Volumes remain 6% above the pre-recession peak in early 2008.
Freight demand continues to follow economic recovery and trade patterns with airlines in Asia-Pacific (+29.8%), Middle East (+39.6%), Latin America (+44.9%) and Africa (+54.0%) growing the fastest. Carriers in North America (+24.2%) occupy the middle ground. Europe (15.3%) is growing at half the rate of the fastest growing regions based on slower economic growth. This trend is particularly evident in Europe which is the only region still 5-6% below the pre-recession peak. IATA believes the low value of the Euro will be a help to the region's exporters and eventually drive up freight volumes.
"We remain cautiously optimistic. A clear indication of the growing confidence is the over 400 aircraft orders announced at the Farnborough Air Show. This is good news that will bring environmental benefits through improved fuel efficiency. But it will also make the challenge of matching capacity to demand much more difficult," said Bisignani
Transport Intelligence
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Deal ends Montreal port strike | |
Agency trying to build trust with shippers, carriers to relieve shortages
July 23, 2010 - The Port of Montreal is expected to resume operations Saturday morning after locked-out longshoremen and their employer hammered out a pact late Thursday night to reopen the port.
The parties met in Montreal, aided by mediators appointed by the federal government earlier in contract negotiations.
Daniel Tremblay, president of CUPE Local 375, the Longshoremen's Union, said the city's longshoremen and women will resume work on July 24. Union members vote on the tentative agreement this morning, but Tremblay said he is confident it will pass.
"Stability is back in the Port of Montreal on Saturday morning," said Gilles Corriveau, spokesman for the Maritime Employers Association.
The deal also reinstates dock workers recently removed from the revenue guarantee program and sets the deadline to negotiate a new collective agreement for October 2010.
The main issue still on the table is the revenue guarantee enjoyed by dock workers.
Edmonton Journal
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TSCA Overhaul Introduced in House | |
July 23, 2010 - Representatives Henry Waxman (D., CA) and Bobby Rush (D., IL) formally introduced the Toxic Chemicals Safety Act of 2010 into the House of Representatives yesterday. The legislation requires the industry to ensure the safety of its products as a condition for allowing them on the market, a profound change from the current law which requires EPA to prove a chemical is harmful before it can be restricted or banned.
ACC calls the bill's introduction a "step toward modernization of the nation's chemical safety laws," but says more effort is needed to protect jobs and the ability of American chemical companies to innovate. "The federal chemical regulatory system must ensure public safety, protect the ability of American business to innovate, and preserve American jobs. This bill will need more work to get us there," says ACC president and CEO Cal Dooley.
Socma says the legislation would significantly hamper innovation, impose stringent regulatory burdens on batch, specialty, and custom chemical manufacturers, and shift chemical production to developing countries. Socma also says the reform effort fails to consider the cost of commercializing new chemicals. "If promoting safer or green chemicals is one of the goals, then the bill must, at the very least, level the playing field between new and existing chemicals. We believe the bias should favor new chemicals," says Socma president and CEO Lawrence D. Sloan.
Socma says is also concerned that the bill does not do more to encourage consistency in compliance to one comprehensive federal standard but instead undermines this effort by ensuring states can adopt varying degrees of TSCA-like programs.
Chemical Week
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