Ocean and air freight rates and trends; customs and trade industry news plus COVID-19 impacts for the week of August 5, 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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Warehouse Demand Shifts Pre-Holiday An expected shift to online holiday shopping is driving temporary warehouse demand, especially in major population centers, according to the Wall Street Journal. By maintaining inventory across additional warehouses, retailers hope to speed delivery.
COVID Flares Squeeze Airfreight Migrating COVID spikes continue to prevent the return of airfreight capacity, reports American Shipper. Coupled with an increase in China exports and rising jet fuel prices, some shippers are beginning to favor the spot market.
Port Growth Projections Shrink Operators and port authorities are reviewing plans for port expansions, according to Hellenic Shipping News. New reduced forecasts for port throughput due to COVID-19 are scaling back investment.
Meanwhile, this week, Flexport Chief Economist Dr. Phil Levy noted the following economic highlights:
Section 301 Updates
FDA Proposes New Regulations on Veterinary Equipment In a Federal Register Notice, the FDA has requested comments (due October 19, 2020) on a new regulation concerning veterinary equipment. The proposed data fields are the same as fields currently used for items that come in contact with food, drugs, biological products, cosmetics, tobacco products, radiation-emitting electronic products, and medical devices.
COBRA Fee Increase As of October 1, 2020 CBP will increase the Consolidated Omnibus Budget Reconciliation Act "User Fees." The increase for 2021 is 8.933%. Merchandise processing fee, vessel arrival fee, truck arrival fee, informal entry fees, and broker permit fees are among the most commonly seen fees which will increase.
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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