Freight Market Update: July 10, 2019
Ocean and air freight rates and trends; trucking and customs news for the week of Month Date, Year.
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Ocean Freight Market Updates
Ocean Carriers Move To Reduce Fuel Emissions
Shipping vessels emit the world’s dirtiest propulsion fuel, but that’s about to start changing—at a price. Starting January 1, 2020, 60,000 ships will significantly reduce sulfur emissions. They’ll use new low-sulfur fuel mixes still being developed by the fuel industry, which will add $50 billion in fuel costs over the next four years. There are rumblings of complaints about potential fuel shortages or crude oil prices, but the United Nations’ International Maritime Organization is standing firm over the change.
Hapag-Lloyd and Ocean Network Express Join Shipping Blockchain Initiative
A global blockchain initiative received a boost when German shipper Hapag-Lloyd and Japanese shipper Ocean Network Express (ONE) have joined the TradeLens project. The group will continue to explore options to cut costs and improve industry tracking with the help of the two global players. Widespread participation is key to the success of blockchain initiatives and it is expected that other shippers will join TradeLens.
Air Freight Market Updates
Customs and Trade Updates
Additional Product Exclusions Granted for Section 301 List 1
The sixth list of product exclusions was posted on the Federal Register for the first tranche of Section 301 tariffs that were implemented on July 6th, 2018. There are 110 specifically detailed tariffs and product descriptions that need to be met to qualify for the exclusion. The exclusions that have been granted are retroactive to the implementation date of the tariffs and will remain in place one year from the July 9th, 2019 publication of the notice.
Stats on IPR Seizures
CBP released statistics on 2018 intellectual property rights seizures. Apparel and accessories topped the list. Unsurprisingly, China was the primary source of counterfeit goods piling up an estimated 54 percent of all the IPR seizures by MSRP value. In related news, the DOC is set to hold hearings from intellectual property rights holders, online marketplaces, and other stakeholders on the increasing counterfeits that are sold in e-commerce. The hearing is scheduled for July 29th.
Official ACE Reports Office Hours
CBP put a CSMS message out stating there are now virtual office hours where ACE users can connect with a reporting expert who will field their questions. These are taking place every Tuesday for a 1v1 consultation to help you set up the reporting you need or answer any ACE reporting specific questions. The meetings can be from 15-30 minutes, and to schedule an appointment you will need to send a request to email@example.com.
For a roundup of tariff-related news and the latest on the G-20 Summit, read our Tariff Insider.