Ocean and air freight rates and trends; customs and trade industry news plus COVID-19 impacts for the week of June 17, 2020.
How will demand recover from COVID-19? And how can you ensure your cargo is moving to keep up with it? Visit Flexport’s COVID-19 Trade Insights for information and analysis.
Want to receive our weekly Market Update via email? Subscribe here.
Ocean Carrier Trends Hint at New Normal As a wave of cancellations tightens ocean freight capacity, carriers are turning away from the rebound strategies of the last global financial crisis in 2008-9 and may be leaning into higher rates in return for greater long-term stability, reports the Journal of Commerce. The trend arises on the back of major carrier consolidations over the past five years.
ITF Vows to Relieve Stranded Seafarers With some seafarers clocking a year or more at sea, due to contract extensions arising from government mandates that prohibit passage during COVID-19, the International Transport Workers’ Federation stated a strong commitment to return seafarers home. The Loadstar reports crew changes are now allowed in Hong Kong and, to a lesser extent, Singapore.
Rejected Truck Tender Rates Rise FreightWaves reveals rejected truckload tender rates are high, hovering just below a tipping point that could flip the market into spot pricing for the summer.
Meanwhile, this week, Flexport Chief Economist Dr. Phil Levy noted the following economic highlights:
Miscellaneous Tariff Bill Preliminary Report Released The International Trade Commission (ITC) has recommended 2,632 of the 3,479 petitions that were filed for inclusion in the Miscellaneous Tariff Bill. It stated 42 petitions weren't eligible as they were incomplete. For the 805 rejected petitions, the ITC requests comments be made June 12 to June 22 in the MTB portal. Chemicals accounted for 1,857 petitions. Machinery and tools accounted for 715 petitions. Textile apparel and footwear made for 581 petitions. The rest were scattered across multiple areas. Congress will have the opportunity to pass the approved MTBs in August.
APHIS Announces Greenhouse Certification Program The Animal and Plant Health Inspection Service (APHIS) recently completed a pilot to establish a new program where non-US facilities can participate in the Offshore Greenhouse Certificate Program for uprooted plants and receive expedited clearances and fewer inspections. On-site inspections of these facilities will start in November 2020.
Updated USMCA Interim Instructions Posted Customs and Border Protection (CBP) posted updated interim instructions on USMCA covering the uniform regulations. However, the new version of General Note 11 still has not been released by the ITC.
For a roundup of tariff-related news, visit Tariff Insider.
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.
Subscribe for the latest news on trade lanes, customs and tariff changes, and expert economic insight.