Ocean and air freight rates and trends; customs and trade industry news plus COVID-19 impacts for the week of May 27, 2020.
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State Support for Shipping Lines Varies Across the world, shipping lines are requesting government aid to stay afloat with varying results, according to the WSJ. In Asia, many nations see ocean freight as vital to the economy. Cash infusions aren’t new there. By contrast, the European Commission prohibits bailouts, but a French pandemic-support package allows for aid to French companies, while a Greek bailout rescues ferries. German shipowners are still seeking relief.
Logistics Cramps Agricultural Comeback After a year-plus of trade-war challenges, US agriculture has seen a demand increase, arising from northeast Asia, despite lower demand from China. Now, the JOC reports, the issue is logistical. Reduced ocean carrier capacity, shifting ports of call, equipment shortages, particularly in the Midwest, and increased demurrage and detention fees are choking agricultural shippers.
Meanwhile, this week, Flexport Chief Economist Dr. Phil Levy noted the following economic highlights:
USTR Grants Exclusions to List 3 of Section 301 Tariffs The Office of the USTR released another batch of exclusions that pertain to the third tranche of Section 301 tariffs on goods from China. There are 17 full 10-digit HTS numbers and 61 HTS numbers with specifically prepared product descriptions. The exclusions apply retroactively to the September 24, 2018 implementation date and will remain in effect until August 7, 2020.
CBP Extends Border Travel Restrictions CBP posted notices that the travel restrictions to Canada and Mexico will be extended through June 22nd. They were previously set to expire on May 20th, but were extended before the deadline. These restrictions do not apply to cargo that is moving across the borders.
Vessel Manifest Confidentiality CBP has modified its process for vessel manifest confidentiality. It released a final rule detailing the new Vessel Manifest Confidentiality Online Application online portal that speeds the rate at which CBP reviews confidentiality requests. Each approval will be valid for two years. Once the two years have passed, a renewal must be submitted.
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.
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