Ocean and air freight rates and trends; customs and trade industry news plus Covid-19 impacts for the week of March, 9 2021.
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Rates: Increasing GRI March 1: Implemented GRI March 15: Pending Capacity: Space is extremely full and rolling to USWC. Space is tight to USEC. Transhipment at SIN/CMB has 1-3 week delays. Equipment: Shortages reported in Mundra and Delhi regions. Equipment shortages continue to be an issue—please make bookings in advance so forwarders can plan for container availability at your local ICD/wet port. Consider moving 20GP instead of 40GP/HC. Recommend utilizing premium services to secure equipment faster.
Rates: Increasing GRI March 15—A few carriers announced increases for Asia and a substantial GRI to Australia/New Zealand. GRI April 1—Multiple carriers have announced another GRI for the start of next month. Capacity: Recommend advanced booking notice 10-14 days prior to CRD at Port. Capacity: Recommend advanced booking notice 10-14 days prior to CRD at Rail Ramp. Chassis availability is tight at most major ports and rail ramps. Recommend factoring in more lead time for truckers to procure chassis. Vessel congestion remains severe at both US coasts continuously moving vessel cut-off dates and earliest return dates in the network.
Taiwan Semiconductor manufacturer TSMC seeks 9,000 new employees in Taiwan as the company has received global attention amid a shortage of semiconductors for the automotive industry [source]
South Korea Posco International aims to increase the production of fuel cell separators for electric vehicles to 10,000 tons by 2027 which are used to power cars, drones, robots, and UAM (Unmanned Aerial Systems) [source]
Philippines New Variant of Covid 19 Strain drives spike in Philippines with 3.2k New cases on Sunday 7th March [source]
Indonesia Swiss voters approved a free trade deal that will remove tariff from almost all of Switzerland's biggest exports to Indonesia, while the Swiss will abolish duties on Indonesian industrial products.[source]
India German auto parts manufacturer, Webasto, invests $34 million USD to set up sunroof factory in India [source]
Bangladesh Home textile sector posted a 39% increase to $730 million in the past eight months to February. However, leather declined 4.2% to $606 million. Non-leather footwear exports stagnated at $219 million versus last year’s $219.47 million [source]
CIT Questions Validity of First Sale for Non-Market Economies
In a March 1st decision by Senior Judge Thomas Aquilino of the Court of International Trade (CIT), first sale valuation methodology may not be a valid valuation methodology for products originating from non-market economies, such as China or Thailand. A non-market economy is generally identified by a government that meaningfully intervenes in setting cost or pricing structures in its economy. Senior Judge Aquilino’s decision was based on many factors, including China’s non-market economy status for antidumping duty considerations and conflicting testimony from employees of a Chinese manufacturer regarding government subsidies. It is unclear whether this decision will have larger implications on the broader use of first sale methodology.
US Temporarily Halts Retaliatory EU Tariffs
On March 4th, the U.S. and UK issued a joint statement on suspending tariffs related to the ongoing international litigation surrounding subsidies on large civilian aircrafts. Both countries are “undertaking a four-month tariff suspension to ease the burden on industry and take a bold, joint step towards resolving the longest running disputes at the World Trade Organization.”
USTR Extends 301 Exclusions for COVID-19 Treatment Products
In a March 5th notice published by the U.S. Trade Representative (USTR), it was announced that Section 301 exclusions for Chinese originating goods used to treat COVID-19 would be extended to September 30, 2021. The exclusions were originally set to expire March 31, 2021.
Some Carriers Skip US West Coast As congestion in US West Coast ports of Los Angeles and Long Beach continues, some carriers have decided to forego stops in the region and loop back to Asia after hitting Northern Europe. The Loadstar reports anchor times of up to two weeks while waiting for berths drives the decision.
Cargo Ship Orders Are on The Rise Carriers are ordering mega-vessels of up to 23,000 TEU for Asia-Europe routes and up to 15,000 TEU to supplement extraordinary ocean market demand for Asia imports to the US. The Wall Street Journal notes the orders may be a sign of an impending return to pre-pandemic factory production levels.
Pilots Object to Hong Kong Quarantine The Air Line Pilots Association has requested one major carrier stop laying over in Hong Kong, due to extreme conditions that, in some instances, include group stays in quarantine camps for up to two weeks or longer. American Shipper reports another remedy could be to staff planes with double crews.
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Please note that the information in our publications is compiled from a variety of sources based on the information we have to date. This information is provided to our community for informational purposes only, and we do not accept any liability or responsibility for reliance on the information contained herein.
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