CBP to further increase forced labor enforcement (From Sandler Travis and Rosenberg)
The Department of Homeland Security announced…[it] is looking to further expand the UFLPA Entity List. These and other changes are detailed in an updated strategy on preventing imports of goods from China made with forced labor.
The UFLPA establishes a rebuttable presumption that goods made wholly or in part in China’s Xinjiang Uyghur Autonomous Region are made with forced labor and are therefore excluded from entry into the U.S. Even companies not importing directly from China may have goods detained if the materials used to produce those goods in a second country are tied at any level to the XUAR or specific entities or commodities associated with forced labor in China.
DHS has previously designated apparel, cotton and cotton products, silica-based products including polysilicon, and tomatoes and downstream products as high-priority sectors for UFLPA enforcement. The department’s updated strategy adds aluminum, polyvinyl chloride, and seafood to that list.
Ed. Note: We have for months been urging importers to carefully and thoroughly vet your suppliers to insure they are not using parts, components, or any kind of input from the XUAR. We further urge you to fully document your vetting process.
Canadian Rail Strike Possibly Starting Aug. 22 (From NCBFAA)
The Canada Industrial Relations Board (CIRB) on Friday, Aug. 9, issued its decision that none of the services provided by the two Canadian railways—CN and CPKC—are essential by law. As a result, no rail services are required to be maintained in the event of a work stoppage initiated by either the union or the railroads. The decision also includes a 13-day cooling off period during which no work stoppage is possible. Prior to any work stoppage, a 72-hour notice must be provided. The earliest possible date of a work stoppage is now Aug. 22 at 12 a.m. ET.
Ed. Note: This will only affect containers landing in Canada and moving to the US by rail.
Ocean shipping rates will remain high (Various)
Various sources report ocean shipping rates will remain high due to demand in US and Europe, combined with the ongoing Houthi attacks in the Red Sea. The latter is causing most liners to divert around Africa, significantly increasing transit times and costs. We predict escalation of conflict in the Mid-East will further exacerbate rates.
Airfreight rates remain stable despite July global IT outage but still high year on year (From Aircargonews)
The latest data from airfreight price reporting agency (PRA) TAC Index show that global air cargo rates only edged up last week (in the week ending July 29).
That news came as a surprise, given the massive global IT outage of 18 July.
The overall Baltic Air Freight Index (BAI00) calculated by TAC in the week to 29 July was only 0.7% higher than the week previously (and 8% up over the same period 12 months ago). TAC acts as the Calculating Agent for the Baltic Exchange air cargo index.
“After the major global IT outage on 18 July, some observers expected the disruption to cause a further bump in air cargo rates, which have already been relatively strong for the summer season,” TAC said in its latest market update.
Overall, rates maintained the firm tone of recent months – particularly out of Asia where there has been a continuing boom in e-commerce. The index of outbound routes from Hong Kong (BAI30) rose by 1% week on week, for example, leaving it up by 21.8% year on year.
Lufthansa Cargo decreases Airfreight Surcharge to 0.50 USD per kg
The sum of cost components in our airfreight surcharge has decreased in the past weeks. Consequently, Lufthansa Cargo is decreasing its Airfreight Surcharge, effective August 19th, 2024, from 0.55 to 0.50 USD per kg chargeable freight weight. Please note, the latest acceptance time (LAT) of the booked/confirmed flight, not the AWB issue date, determines the applicable Airfreight Surcharge.
CBP user fees to increase Oct 1(From Sandler Travis and Rosenberg)
U.S. Customs and Border Protection has adjusted the following customs user fees and limitations for fiscal year 2025 and will require these adjusted fees as of Oct. 1, 2024.
– merchandise processing: minimum $32.71 (up from $29.66) and maximum $634.62 (up from $575.35). The MPF rate of 0.3464% will NOT change.
– informal entry or release not prepared by CBP personnel: $2.62 automated (up from $2.37) and $7.85 manual (up from $7.12)
– informal entry or release prepared by CBP personnel: $11.78 (up from $10.68)