Ocean and air freight rates and trends; customs and trade industry news plus COVID-19 impacts for the week of August 12, 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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Buy and Hold Gains Popularity Businesses seeking the perfect balance between just-in-time and just-in-case stock levels, after COVID shortages and delays, may be stuck with more inventory than they can afford to store, according to the Wall Street Journal. Many are creating liquidity by offloading to buy-and-hold companies that charge storage and risk costs, then sell goods back.
Coast Guard Explores Automated Ships The US Coast Guard requests comments and data on the value, benefits, and challenges of automated and autonomous vessels and related technology, reports American Shipper. A 16-question survey will inform US Department of Transportation policy actions.
Trucking Capacity Levels Out After a sharp Q2 contraction, North American trucking capacity has stabilized, although capacity is still tight, according to the Journal of Commerce. For now, companies scrambling to maintain continuity after COVID delays are driving demand.
Meanwhile, this week, Flexport Chief Economist Dr. Phil Levy noted the following economic highlights:
Section 301 & 232 Updates
New Marking Guidance on Hong Kong Goods CBP released new guidelines that goods made in Hong Kong now need to be marked with the origin of China. This rule follows an Executive Order from July 14, 2020. There is a 45-day transition period to allow the trade community to change their marking. No statements were made on the tariff treatment or origin declarations on goods made in Hong Kong, but more details will likely be released before September 25, 2020 when all goods will be required to be marked with China origin.
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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