|February 2, 2021|
|It wasn’t our intention to place so much focus on China and congestion in this issue, but those are the stories and situations that continue to rule the day for both our customers and our offices here and abroad. As we work diligently to mitigate and solve issues of vessels at anchor, container scarcity and inconsistent capacity, we do so with as much transparency as possible. This helps our customers to better understand the issues and to give them information to share among their internal stakeholders to have answers for difficult questions.|
|The Lunar New Year “Holiday” that might not be|
Traditional migration of people mitigated by market forces, Chinese government Billed – rightly – as the largest mass migration on the planet – the return of mainland Chinese to their home cities and villages for the Lunar New Year celebration represents a flood of people cramming every manner of conveyance to return and celebrate with their families. But a year ago at this time – the pandemic changed all that. A year later, the pandemic is playing a role again, but not the way you’d think.
Now there are two kinds of blanked sailings. This week news broke that carriers are blanking sailings for Lunar New Year not for lack of cargo – but for lack of vessels. FreightWaves highlights how the dozens of vessels at anchor in Southern California are causing missed slots in their service rotations. This is impacting both transpacific eastbound and Asia-Europe routes, meaning global shippers can’t catch a break sailing in any direction.
The Office of Information and Regulatory Affairs has posted the “Concluded Action” of the Section 301 proposal as “Withdrawn”. This withdraws the request CBP filed Excepting Merchandise Subject to Section 301 Duties from the Customs De Minimis Exemption. The proposal as requested initially by CBP would have made articles subject to Section 301 duties not eligible for de minimis, and therefore not eligible for duty free treatment under Section 301. The withdrawal of the request maintains the status quo.
The issue of Brexit and the woes for importers and exporters extends beyond the stories in the news about truckers losing their sandwiches. The UK customs computer system is unable to keep up with the ability to generate the transit documents for trucks to leave the country in a timely fashion. These delays, coupled a potential French national strike next week, mean significant challenges for cargo moving to and from the UK by road and additional costs to find drivers willing to make the time-consuming roundtrip.
American ag exporters crying out for containers. Chinese container factories are booked months in advance and the number of ships at anchor and equipment out of place has driven lines to take the drastic step of exporting more empties than usual. This decision is adversely impacting US agricultural exporters who, without a steady supply of boxes at inland destinations, are having to undertake the more expensive route of getting cargo to the west coast for loading if they want to maintain sales in Asia. CNBC tackled the story last Tuesday.
- Posted by Joe DeSilvetri
- On February 4, 2021
- 0 Comments