Ocean and air freight rates and trends; customs and trade industry news plus COVID-19 impacts for the week of June 24, 2020.
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Port Congestion Up Ports in Europe and North America are facing increased congestion, due to a continued wave of blank sailings, according to The Loadstar. Fewer sailings mean average TEU moves per port call are up, leading to delays in yards and longer truck lines.
Airfreight Volumes Rise and Dip Transpacific airfreight volumes increased last month, despite the slowdown of emergency medical supply shipments, reports the Journal of Commerce. The rise in overall volume and dynamic load factors from Asia hints at recovery, but summer Transatlantic belly capacity is low as recent rulings limit US passenger travel to Europe.
Europe Proposes CO2 Regulation The European Parliament's environmental committee has developed a proposal to measure ship CO2 emissions and apply cap-and-trade limits under the EU Emissions Trading System. The Maritime Executive reports the full measure is up for vote in September.
Meanwhile, this week, Flexport Chief Economist Dr. Phil Levy noted the following economic highlights:
USMCA Tidbits On July 1, USMCA came into effect. As a guidance document, CBP released implementation instructions. The ITC released the 14th revision of the HTS which had the new General Note 11 detailing the rules of origin. New SPI indicators S and S+ were also added. 19 CFR Part 182 has been added, but most of it is blank for now. The interim final rule will be used as the framework to finish part 182. The hope is to have Part 182 completed before the end of 2020. There was also guidance posted on drawback claims through a CSMS message. The rules for the Labor Value Content were also released, mandating workers be paid at least $16/hr. CBP is also hosting trade support calls for USMCA between July 6-8 from 2-3 EDT.
US Responds to China's New Security Law on Hong Kong Last week China imposed new laws on Hong Kong. The Bureau of Industry and Security (BIS) released a notice that, effective June 30th, all license exceptions under EAR that were in place for Hong Kong are no longer valid. Exports to Hong Kong will be treated the same way that exports to China are currently, and many controlled dual-use export/re-exports/transfers will now need a license. If an item was exported to Hong Kong prior to June 30th, the exemptions will still apply. Additionally, all defense exports to Hong Kong will be halted, and new visa restrictions put in place for some Chinese government officials.
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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