Ocean and air freight rates and trends; customs and trade industry news plus COVID-19 impacts for the week of July 22, 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.
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Flooding Overwhelms Yangtze Ports Days of rain have impacted key ports along China’s Yangtze River as the country’s flood alerts hit red, its most severe warning level. Multiple ports suspended operations, but are now returning online with delays, according to Supply Chain Dive.
Product Releases Crunch Air Capacity After a period of stabilization, airfreight may again be in high demand as the new iPhone 12 and Playstation 5 are scheduled to launch ahead of holiday shopping. American Shipper points to a new wave of PPE demand compounding the issue.
Silk Road Trains Break Records China-Europe freight trains have increased by 48% at Khorgos, the city on the Chinese border known as the furthest from any ocean. With demand comes delay, according to The Loadstar, as westbound routes are far more popular, causing a shortage of cars in China.
Meanwhile, this week, Flexport Chief Economist Dr. Phil Levy noted the following economic highlights:
USTR Grants More Exclusions to Tranche 4 The USTR issued a set of product exclusions to Section 301 List 4 of goods from China. There were 11 full HTS numbers and 53 specifically prepared product descriptions. They apply retroactively to the September 1, 2019 implementation date and will be in effect until September 1, 2020.
DOC Adds 11 New Entities The Department of Commerce has added 11 new Chinese entities to the "Entities List," due to their human rights violations. Nine were identified as using forced labor from Muslim minority groups, while the remaining two were seen as conducting genetic analyses that repressed minorities. All exports from these entities will now need licenses that will be reviewed and approved by the EAR and BIS.
FTC Requesting Comments on New "Made In USA" Requirements In June, the FTC published its proposed new rules around "Made in USA" labeling requirements. The rule increases the authority they have in issuing penalties for label violators. They are now accepting comments on the new rules until September 14, 2020.
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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