Chinese new year approaches
Our Chinese agent reports the following closures:
Please be informed that our offices will be closed for Chinese New Year holidays. Kindly see below:
Hong Kong office will be closed from 16 Feb to 19 Feb and resume working on 20 Feb. Other China offices will be closed from 15 Feb to 21 Feb and resume working on 22 Feb
Best regards,
Shirley Wong
Operations Director
HELKA Global Logistics Limited
Trucker availability and rates worse than previously reported
Last week we reported that trucker availability was tight and that rates would rise “in the 10-12% range in the near future”. Our GFG member in Illinois reports the following:
The shortage of equipment and drivers is the most extreme in our experience with full container deliveries.
In Chicago, Texas and most of the southeast U.S. we are seeing, in many cases, that truckers are booked and can’t accept deliveries for [10 -14 days]. This is resulting in additional storage and demurrage for the account of the importer.
As well, on steamship line door moves we have had 2 steamship lines tell us they could not find truck power for 1-2 weeks. They advised that our options were to have the cargo sit at the port/ramp and accrue thousands of dollars in storage and demurrage or they would be happy to terminate the shipment at the port/ramp and we can arrange our own delivery. In both cases the containers were already on storage when the steamship line dropped this in our lap.
Within in an hour we were able to find 2 truckers that could pull the container within 2 days. In both cases the truckers were preferred carriers for these 2 steamship lines. Our take on this is that the steamship lines are not really trying to find a better solution. It appears that they give the delivery to the first trucker that will accept it regardless of when the delivery date is.
We strongly urge partners not to book any steamship line door moves for the foreseeable future.
If/when we can find a truck that can deliver in 1-2 days, in many cases higher rates apply.
Several factors have converged to overwhelm the trucking market. Freight volumes in December hit near-record levels for that time of year, on the back of a strengthening economy. Retailers are replenishing stocks after one of the strongest holiday sales seasons in recent years. Manufacturers are also shipping more cargo; in December, industrial production had the largest year-over-year gain since 2010, according to the Federal Reserve. What’s more, bad weather and a new federal safety rule that took effect in December have crimped the supply of available trucks. Diesel prices are near a three-year high, adding to transportation costs.
In the spot market, where shippers hire trucks on short notice, there were about 10 loads waiting to be moved for every available truck in the week ending Jan. 20, compared with three in the same week last year, according to online freight marketplace DAT Solutions LLC.
Spot-market prices for dry vans, the most commonly used big rig, are up more than 20% year-over-year
Ed. Note: It appears we were optimistic last week! We urge you to avoid steamship line door moves, especially with MSC, and to get us your documents as soon as possible so we can book a reliable trucker in advance. Further, expect increasing truck rates and fuel surcharges through 2018.
GSP renewal legislation introduced in House (From American Shipper)
House Ways and Means Trade Subcommittee Chairman Dave Reichert, R-Wash., on Thursday introduced bipartisan legislation to renew the Generalized System of Preferences (GSP) through 2020, after it expired at the end of 2017. The renewal would activate on the 30th day after enactment, and provide retroactive benefits for any normally eligible GSP goods entered into U.S. commerce during the ongoing lapse in coverage. Filings for retroactive liquidation or reliquidation would have to be filed with U.S. Customs and Border Protection (CBP) within 180 days of enactment, and would be required to contain sufficient information to enable the agency to “locate” the entry… For more info, please go to
https://www.americanshipper.com/main/asd/gsp-renewal-legislation-introduced-in-house-70563.aspx?utm_source=AS+Daily+Newsletter&utm_campaign=d5a4f10115-EMAIL_CAMPAIGN_2018_02_09&utm_medium=email&utm_term=0_485fa13138-d5a4f10115-62946101
Ed. Note: First, if your entries were otherwise eligible for GSP treatment, we have already flagged them for automatic refund of duties. Second, we have no idea if or when this legislation will be passed and signed into law. As always, as soon as we are notified of any such changes, we will notify you.
Expedited Food Import Program Launched (From Sandler, Travis)
The Food and Drug Administration announced Jan. 31 that it has launched its Voluntary Qualified Importer Program, a fee-based program that will provide for expedited review and importation of human and animal food by participating importers who achieve and maintain a high level of control over the safety and security of their supply chains. The FDA believes VQIP benefits will incentivize importers to adopt a robust system of supply chain management and allow the agency to focus its resources on examining and sampling food imports that are more likely to present a potential risk to public health.
The VQIP launch was made possible because the FDA has recognized the first accreditation body under the Accredited Third-Party Certification Program, which accredits third-party certification bodies (auditors) to conduct food safety audits of foreign food entities and certify that they and the food they produce meet applicable FDA food safety requirements. These audits and certifications will be used by importers seeking to establish eligibility for the VQIP. For more info, please go to
https://www.strtrade.com/news-publications-VQIP-qualified-importer-food-FDA-020218.html
Contact us with any questions.
Lee Hardeman LeeH@LHCB.com Direct: 404-477-3452
Sandy Cato SandyC@LHCB.com Direct: 404-477-3454
Brittany Albaneso BrittanyA@LHCB.com Cell: 404-401-5950
If you do not wish to continue to receive our newsletter, please email me at leeh@lhcb.com and put “Unsubscribe” in the subject line.