Freight Market Update: August 1, 2019
Ocean and air freight rates and trends; trucking and customs news for the week of August 1, 2019.
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Ocean Freight Market Updates
10% Tariff Announced on Remaining $300 Billion in Chinese Goods
President Trump announced that remaining Chinese imports will be subject to a 10% tariff beginning September 1, 2019. Despite the tariff announcement, negotiations between China and the United States are expected to continue.
Asia’s Trade Slump Shows Signs of Slowing
A report by Goldman Sachs Group Inc. has found that the trade slump in Asia is showing signs of bottoming out. According to the report, a pick up in exports from Asian economies outside China, including India, Vietnam, and Taiwan may be canceling out the negative effects of the trade war on the Chinese economy.
Air Freight Market Update
Trucking Freight Market Updates
U.S. Truck Driver Shortage Expected to Double
A study by the American Trucking Associations has found that the truck driver shortage in the United States is expected to double over the next ten years. The driver deficit grew by more than 50,000 drivers from 2017 to 2018.
Customs and Trade Updates
USTR First Notice of Product Exclusions from Second Tranche of Section 301 Tariffs
The United States Trade Representative (USTR) has released a list of product exclusions (starting page 6) from the second tranche of the Section 301 tariffs. The additional duties on goods of China origin were estimated to have an annual trade impact of $16 billion. There are a total of 69 product exclusions including various polyethylene and plastic products, combustion piston engines, sensors, animal collars, and others. Product exclusions announced in this notice will apply as of August 23, 2018, and will extend for a one year time period from the publication of the notice.
CBP Readies for eCommerce Pilot
Customs has announced that they are conducting a voluntary test to collect data on shipments potentially eligible for release under section 321 of the Tariff Act of 1930. Section 321 allows for duty and tax exemptions for shipments imported by one person on one day with the shipment having a retail value less than or equal $800. The test will have participants electronically transmit certain data elements pertaining to these shipments in advance of arrival in the U.S., with the aim of assessing the feasibility of requiring such data from different types of parties. The voluntary pilot will begin August 22, 2019, and run for approximately one year. Those interested in participating in the pilot should submit an email to firstname.lastname@example.org, stating their interest and their qualifications based on the eligibility outlined in the announcement.
For a roundup of tariff-related news and the latest on the G-20 Summit, read our Tariff Insider.