February 2022

Lufthansa Cargo increases Airfreight Surcharge to 0.60 USD per kg

(From Lufthansa)

The sum of cost components in our airfreight surcharge has increased in the past weeks. Consequently, Lufthansa Cargo is increasing its Airfreight Surcharge, effective February 21, 2022, from 0.55 to 0.60 USD per kg chargeable freight weight. Please note, the AWB issue date, not the flight date, determines the applicable Airfreight Surcharge.

Ed. Note: Lufthansa increased this surcharge from $0.45 to $0.55 USD per kg on Feb 7. We expect other airlines to follow, and future increases are almost certain given the rise in the price of oil.

U.S. to Ban Goods Made In Xinjiang, China (From Sandler, Travis, and Rosenberg)

Under a new law the U.S. will ban imports of all goods made in whole or in part from any good from the Xinjiang Uyghur Autonomous Region in China, effective June 21, 2022. Companies need to use the next [150] days to ensure their supply chains do not include such goods.

President Biden signed into law [last] Dec… the Uyghur Forced Labor Prevention Act, which effectively deems all goods mined, produced, or manufactured in the XUAR to be produced by forced labor in China. Even those not importing directly from China may have goods detained if the materials used to produce the imported goods in a second country are tied at any level to XUAR or specific entities or commodities associated with forced labor in China.

Under this law, imports of goods from the XUAR will be banned unless U.S. Customs and Border Protection determines that:

  1. the importer of record has fully complied with relevant guidance to be provided by CBP, as well as any regulations issued to implement that guidance;
  2. the importer has completely and substantively responded to all inquiries for information submitted by CBP to ascertain whether the goods were made wholly or in part with forced labor; and
  3. by clear and convincing evidence, the goods were not made wholly or in part by forced labor.

Any good from the XUAR that thus overcomes the rebuttable presumption of being made with forced labor will be included in a public list to be issued by CBP 30 days after making such determination. For more info, please go to

https://www.strtrade.com/trade-news-resources/str-trade-report/advisories/december/u-s-to-ban-goods-made-in-xinjiang-china?mkt_tok=NzIzLVdPWi00NDYAAAGBm2E-NPHepDDYLsyoeIq4Vf2xZ0JMEnCwJYyTqjKwOa8_b7XoCi5GsiTn35z5L9WXMWIyrnEiwMOGyM1Gd8fgePcYbAYBV-jWYkHLuuE

Inflation Pressure Hits New Warehouse Leases, Up 25% in 2021 (From Kiplinger)

Prices to lease industrial properties are up an average of 25% over the rates that expired in 2021. “We don’t see any mitigation in demand for industrial space,” said John Morris, at CBRE…

Ed. Note:  Every other source we know is reporting about the same increase in warehouse costs and availability with no easing in sight.  Please expect warehouse space to be VERY tight and VERY expensive for the foreseeable future.

UptickPenalties, Seizures, Other Customs Enforcement Efforts See Uptick

Penalties, Seizures, Other Customs Enforcement Efforts See Uptick in FY 2021 (From Sandler, Travis, and Rosenberg)

U.S. Customs and Border Protection collected more money from importer audits, issued more penalties, and seized more imported goods in fiscal year 2021 over FY 2020, according to statistics recently made available by CBP. These increased enforcement actions highlight why now is a critical time to do an import compliance review.

Ed. Note:  We are pleased to offer pre-audit reviews to insure your import program is compliant and would withstand a Customs audit.  Please contact Lee for details.