Newsletter – August 2020

Articles

Cost to Move Goods About to Go Even Higher

Whether shipping by land, sea, or air, capacity constraints have driven up rates for international shipments, further complicating matters for businesses already dealing with the effects of COVID-19.  A significant reduction in belly capacity due to limited passenger flights, which handle almost half of the world’s air freight, has driven rates up 60% from the same period a year ago…

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Goods from Hong Kong to Require Made in China Labels

CBP has announced that products produced in Hong Kong will have to be marked as made in China.  CBP will grant importers a 45-day transition period to implement the origin marking changes and all goods entered into the U.S. or withdrawn from warehouse for consumption after September 25, 2020 will need to comply.  Failure to mark an article from Hong Kong as Chinese origin…

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CBP Issues First Penalty Issued for Imports Made with Forced Labor

CBP has penalized a U.S. importer for importing goods made with forced labor.  The $575,000 penalty against stevia sweetener importer, Pure Circle U.S.A., Inc. is the first penalty issued since the Trade Facilitation and Trade Enforcement Act of 2015 tightened restrictions on imports made with forced labor.  CBP states that the action is the result of an investigation into stevia…

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Labor Strike Forces Diversion of Vessels Bound for Montreal

The stand-off between longshoremen and port employers at the port of Montreal took a dramatic turn for the worse as the union launched an indefinite strike that has virtually shut down Canada’s second largest port.  The dispute, which has been dragging on for nearly two years and has left the longshoremen without a contract since December 2018, has resulted in several work stoppages…

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No respite for parcel shippers as FedEx and USPS unveil more surcharges

THE LOADSTAR
It didn’t take long for the other shoe to drop – after UPS announced peak season surcharges for domestic parcel deliveries on 7 August, US parcel shippers were bracing themselves for FedEx to follow suit.
It duly did so this week, after a similar announcement from the US Postal Service (USPS) on Friday…

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Rethinking Supply Chain Risk in the “Never Normal” World

Supply & Demand Chain Executive
The heavy dependence on China across industry verticals is an obvious example of the sole-sourced nature of today’s supply chains.  The Coronavirus disease (COVID-19) has brought great human tragedy to the world, including thousands of lives lost, the enormous strain on healthcare systems across nations and striking levels of unemployment. It has also brought unprecedented disruption to our modern, deeply intertwined global supply chains, exposing previously hidden systemic risks…

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Truckers seek $1.8B from ocean carriers for alleged chassis overcharges

American Shipper
The American trucking industry has filed a cease-and-desist request with the U.S. Federal Maritime Commission over what it says are ocean container carriers distorting the cost of chassis usage.  The American Trucking Associations’ Intermodal Motor Carriers Conference filed the complaint against the Ocean Carrier Equipment Management Association and 10 of its ocean carrier members with the FMC on Monday…

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Lufthansa Cargo opens new pharma hubs as airfreight prepares for a vaccine

THE LOADSTAR
Lufthansa Cargo has “massively expanded” its cold chain footprint with new pharma facilities in Munich and Chicago, as airfreight turns its eye towards vaccine distribution.  The 1,000sq metre pharma hub at Munich Airport has capacity for 96 pallets and loose cargo, with storage available under three different temperature ranges…

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US halts imports linked to Taiwan-based fishing vessel

WSLS News 10
Accounts of abusive conditions and forced labor have prompted the U.S. to halt imports from a Taiwan-based fishing vessel that reportedly has supplied the global tuna trading company that acquired Bumble Bee Seafoods this year.  U.S. Customs and Border Protection issued the order blocking shipments from the Da Wang at all American ports, the second such action by the Trump administration against a vessel in the Taiwanese shipping fleet since May…

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Hundreds of China List 3 Goods Now Subject to Tariffs; Others Granted an Extension

The USTR declined to renew the tariff exclusions for the remainder of the goods on List 3, which previously had been granted an exclusion from the addition duties.  Therefore, the remaining 750 products are now subject to the 25% additional duty…

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Trump Reimposes Aluminum Tariffs on Canada; Canada Threatens to Retaliate

President Trump has reimposed an additional 10% tariff on non-alloyed unwrought aluminum products from Canada, effective August 16, 2020.  In addition, no drawback will be available for goods subject to the Section 232 duty.  The U.S. originally imposed the Section 232 tariff on aluminum articles from Canada in June 2018, and Ottawa retaliated…

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Tariffs on Imports from EU Slightly Modified

The Office of the U.S. Trade Representative has announced revisions to the list of imports from the European Union which are subject to the additional 25% Section 301 tariffs.  The modifications to the products listed below will take effect for any product entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on September 1, 2020…

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Sporting Goods, Toys Among New China List 4A Tariff Exclusions; Retroactive Refunds Available

The Office of the U.S. Trade Representative has announced 10 additional product exclusions from the additional 7.5% Section 301 tariffs on List 4A goods from China.  Excluded products include sporting goods, toys, and glassware.  According to international trade law firm Sandler, Travis & Rosenberg, it is likely that these will be the last List 4A exclusions…

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