Freight Market Update: August 26, 2020
Ocean and air freight rates and trends; customs and trade industry news plus COVID-19 impacts for the week of August 26, 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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Ocean Freight Market Update
Air Freight Market Update
Freight Market News
ATA Files Shipping Act Suit The American Trucking Associations’ Intermodal Motor Carrier Conference (IMCC) has filed suit with the Federal Maritime Commission, claiming foreign shipping lines are violating the US Shipping Act. Lloyd’s Loading List reports alleged offenses include limiting equipment leasing choices in order to control unreasonable pricing.
New Silk Road Routes Explode With volume doubling or tripling on some routes this year, China-Europe rail transport is experiencing a boom, influenced by Chinese investment, blank ocean sailings, and delivery speeds, according to Supply Chain Digest.
Strike Truce Relieves Delays After two weeks of strike diverting cargo ships to other ports, workers in Montreal have resumed work under a truce, in effect until March 2021. According to The Maritime Executive, more than 90,000 containers and 300,000 tons of bulk cargoes were delayed with the congestion likely to take up to another month to clear.
Meanwhile, this week, Flexport Chief Economist Dr. Phil Levy noted the following economic highlights:
- IHS Markit Purchasing Manager Indices (PMI) painted contrasting pictures of major global economies. The US number for August showed manufacturing strength driven by new orders. The corresponding Eurozone number showed slowing growth from July to August.
- Initial US jobless claims popped back up over 1.1m, after dipping below the million mark the week before. This was the 22nd straight week above the pre-2020 record.
Customs and Trade Updates
CBP Extends Hong Kong Marking Compliance Period
CBP issued a CSMS message stating it is extending the transition period by 45 days for goods to be marked with China origin instead of Hong Kong origin. The new deadline is November 9th, 2020.
Exclusions Granted for Section 301 LIst 3
The USTR issued a notice that two new exclusions were granted, but they have also already expired as of August 7th, 2020. Importers can still claim refunds on prior entries through a PSC, or protest retroactively to the September 24th, 2018 implementation date.
Comments Requested on Proposed AD/CVD Changes
The Department of Commerce is accepting comments on proposed changes/modifications to AD/CVD (Antidumping and Countervailing Duties) until September 14th, 2020. The biggest area of concern within the trade community is the proposed changes to scope rulings decisions. Once a scope ruling is released, Commerce would be allowed to retroactively suspend liquidation and require cash deposits. Other proposed changes in the notice dealt with anti-circumvention and certificates.
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.