May 2021

Transportation rates continue to increase, at least into the Fall (Various sources)

The JOC reports LTL pricing in the US continues to climb as pressures from increasing wages and other factors push further rate hikes. Both carriers and 3PLs report higher LTL volumes. Lufthansa Cargo increased their airfreight surcharge to 0.35 USD per kg, effective May 17.  Expect other carriers to follow suit. We are receiving similar reports from all modes of transport – air, ocean, trucking, rail, and warehousing.  Many knowledgeable industry leaders think this trend will continue into the Fall, and perhaps beyond if consumer demand continues unabated.

100% Screening for all cargo on freighters effective June 30, 2021 (Lufthansa)

The Transportation Security Administration (TSA) is mandating 100% screening for all cargo on board freighter aircraft departing the USA effective June 30, 2021. The screening measures will be aligned with existing measures for passenger aircraft.  TSA has not released the full screening requirements.  As they are released we will advise you.

Audits, Penalties, Other Customs Enforcement Efforts See Uptick in FY 2020 (From Sandler Travis and Rosenberg)

The statistics show increases in many customs enforcement measures in FY 2020, including 19.2 percent more audits, 9.5 percent more trade penalties, and 17.9 percent more trade seizures. There were even larger increases in trade remedy evasion investigations (106.4 percent), forced labor withhold release orders (116.7 percent), and WRO-related detentions (2600 percent). Many of these measures could see further increases in FY 2021, highlighting the need for importers to develop, implement, and monitor effective compliance programs.

Ed. Note:  We have been very successful in keeping our clients out of these arenas. Please continue to ask us for guidance on classification before you import new products and/or if you have a complicated process.  We have found that if the classification is correct from the beginning and there are good  import procedures in place,  our clients will avoid these problems.