Ocean and air freight rates and trends; customs and trade industry news plus COVID-19 impacts for the week of June 3, 2020.
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Shipping Groups Call for Port Digitalization The International Association of Ports and Harbors issued a call to action signed by 9 other shipping groups that seeks to streamline digital processes and data exchanges between ports with the goal of building a more resilient environment in the wake of COVID-19 congestion and delay. Hellenic Shipping News outlines 9 priorities to promulgate harmonious digital standards that are compliant with existing regulations and include ports of all sizes.
Emergency Air Freight Demand Subsides As nations slowly re-open after COVID-19 shutdowns, the JOC reports intense air freight demand has started to dip from mid-May highs when the rush for PPE and medical supplies was more urgent. Flattening infection rates have allowed North America and Europe to build stocks of supplies, reducing the need for emergency transport.
Meanwhile, this week, Flexport Chief Economist Dr. Phil Levy noted the following economic highlights:
End to Hong Kong's Special Status In a press conference last week, President Trump announced that Hong Kong will have its special status as a separate customs territory revoked. While details were lacking, the implications of such a shift would be vast, potentially changing most everything in the US-HK relationship including export controls, customs, immigration, and section 301 duties. A more detailed executive order is expected later this week. These actions will likely escalate the current trade war between the US and China.
Section 301 List 3 Extension Comments Requested The USTR issued a notice that it will accept comments on three additional sets of the Section 301 List 3 tariffs that are set to expire on August 7, 2020. Comments can be sent between June 8 and July 7 and should show why the exclusion of that product should be extended for another year. Extensions will be reviewed individually on their own merit.
Section 301 List 1 Exclusions Extended The USTR released a list granting an extension to 16 exclusions that were previously granted to Section 301 List 1. These exclusions were set to expire on June 4th, but are now extended for six months until December 31, 2020. The remaining 72 exclusions will expire on June 4, as they were not granted an extension.
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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