November 2020

All international cargo carriers reporting higher rates

Every article and report I have read lately notes that cargo capacity is VERY tight, and that rates are going up. We have seen rates for 40ft containers from Asia to the West Coast as high as US$7000, AND we expect they will go higher since carriers are having trouble finding enough containers to meet demand, especially in the Asia to US trades.  Air freight is at all time highs, and US truckers are seeking double-digit increases. I understand rails rates are also increasing.  Some analysts predict this will continue until the start of Chinese New Year, which begins Feb 12, 2021 (the Year of the Ox).  This situation is unprecedented in the 40 years I have been in this industry!

Reminder: Nov. 30 Deadline to Exclude XPCC Subsidiaries from Supply Chain  (From Sandler, Travis, Rosenberg)

The Office of Foreign Assets Control has extended from Sept. 30 to Nov. 30 a general license allowing companies to wind down their supply chains to exclude the majority-owned subsidiaries of China’s Xinjiang Production and Construction Corporation.  OFAC added XPCC to its Specially Designated Nationals List on July 31 for serious rights abuses against ethnic minorities in China’s Xinjiang Uyghur Autonomous Region. For more info, please go to

https://www.strtrade.com/trade-news-resources/str-trade-report/trade-report/companies-get-two-additional-months-to-exclude-xpcc-subsidiaries-from-supply-chains?mkt_tok=eyJpIjoiWVRRd1lqSXlaR1U0T1RnMiIsInQiOiJKMzdpT1J0YjVcL1wvUlNTaVF3QWpjSDIrUXp4bVBXYzIwYjcrclJtdHJjc2F3VEp1VERMQ1ZWeFNYUytadENROElmOEpudmVcLzBkelFXaFwvN0E2cGQxblJTTHE0ZWRVZ1IrOGdmT0VxR0RmRHlzVHk3WjkzWnRZendvZXZza1hwSWQifQ%3D%3D#utm_source=tradereport&utm_medium=email

GSP expires Dec 31

A reminder that Generalized Systems of Preference (GSP) expires next month on December 31.  Congress historically has reinstated GSP, several times retroactively, but in this political environment, we make no predictions.

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www.lhcb.com

for additional and updated information and  contact us with any questions.