|The collective trade has been asking when somebody from the government would take an interest in what has been happening at US ports. Importers have been crushed under the weight of freight rates quadruple this time last year and exporters are seeing their goods languish because of equipment and space challenges preventing their goods from being shipped. This finally caught the attention of a Congressional committee which held a hearing about it this week and made representatives from the FMC and the World Shipping Council answer questions.|
|WHAT TO DO ON THE TRANSPACIFIC?|
As the situation seems to worsen, what is happening to make it better and how can Alba help? Whether you’re an importer or an exporter, the state of affairs of the transpacific trade lane is not to your liking for financial, service and capacity reasons. In the face of delays, equipment imbalances and congested terminals, what are the ways that shippers can proactively insulate themselves from these issues? On our blog this week, we take a look at where things are at, what relief may (or may not) be on the horizon and how to best plan.
USTR, European Union announce a way out of the large aircraft dispute and mutually destructive trade remedy duties One of the longest running disputes at the World Trade Organization between the United States and European Union has been the large aircraft dispute over subsidies to Boeing and Airbus, respectively. The previous administration imposed punitive duties on European imports and the EU responded in kind to American exports. As part of President Biden’s European trip, the USTR announced a cooperative framework that suspends the tariffs for five years.
The White House released the report the President commissioned on Supply Chain Resiliency and it provides a roadmap for planned investments in semiconductor manufacturing, PPE and other initiatives intended to preserve America’s competitiveness and protect industries at home from being adversely impacted by an overreliance on foreign manufacturing, especially from China. Alba understands that this doesn’t mean a wholesale shift from foreign to domestic sourcing, but rather will give companies the opportunity to diversify their supply chains.
One million TEU’s. In one month. That’s a new Western Hemisphere record set by the Port of Los Angeles and an increase of 74% from May of last year. Admittedly, we know what was happening in May of last year with blanked sailings and slowly-resuming factories and the hard pivot to PPE before the demand for consumer goods took off. Hand-in-hand with this 1 million TEU May came the news that the port set another record for their FY, processing more than 10 million TEU’s with a few more weeks to go until their June 30th end of year.
Have you registered for the AAEI annual conference yet? The American Association of Exporters and Importers is holding their 100th anniversary conference online from June 29th through July 1st. This annual event brings together shippers, logistics companies, lawyers and consultants to share their thoughts and engage with participants on the most important issues of the day. Register for the event today.
- Posted by Joe DeSilvetri
- On June 21, 2021
- 0 Comments