30/10/2020

Dear all Valued Customers

 

US Port & Terminals

 

Port Everglades Terminal

Vessel wait times are 11 to 12 days. Yard is at 100% of capacity.

 

Port of Houston

Vessel wait times remain 24 to 48 hours. Expecting berth congestion mid to late next week with vessel bunching.

 

Port of Prince Rupert

Vessel wait times are 9 to 10 days. Currently operating at 100% of capacity.

 

Port of Long Beach

3 to 5 days waiting time for vessels.

 

Port of New Orleans

Hurricane Zeta has rapidly strengthened into a strong Category 2 as it nears landfall on the Louisiana coast. It is expected to bring life-threatening storm surge, damaging winds and heavy rainfall. As a result, Supply Chain Solutions is preparing for probable delays.

 

Ocean Highlights

 

 

• The congestion that has plagued the ports of Los Angeles (LA) and Long Beach (LB) in recent months is expected to worsen over the next two weeks owing to what is being called a “record” level of imports.
• As we move closer to the end of the year, Manufacturers and Retailers should expect ocean contract freight rates on most routes to increase – not fall – in 2021, following major market changes since the COVID-19 outbreak.
• Carriers cruising into red-hot holiday season.
• Intermodal equipment providers issue a dire warning that chassis shortages in Southern California will persist into next year.
• Pickup charges for container users are becoming more expensive across Chinese ports due to increasing container imbalances.
• Hapag-Lloyd is applying a Peak Season Surcharge (PSS) for dry containers on the Middle East trade from Italy to Middle East and Indian Subcontinent. Effective for sailings as of November 15, 2020 and valid until further notice the PSS for Italy to Middle East and Indian Subcontinent ports will be as follows: USD 150 per 20’; USD 150 per 40’.
• The on-time performance of carriers has declined sharply to 56% since a 2020 high in June when large amounts of capacity were blanked.
• Asia–Europe demand forecasts for 2021 are becoming increasingly unclear as annual contracts come to an end, while high spot market levels have put shippers on course for significant long-term rate increases.
• US exporters are crying foul as at least one trans-Pacific carriers has begun turning down shipments of low-revenue agricultural exports in order to expedite the return of empty containers to Asian load ports to carry much higher-paying US imports of consumer merchandise.
• Responding to demands by port stakeholders to take immediate action to relieve congestion, Long Beach opens a near-dock container storage yard and Los Angeles is rolling out financial incentives for carriers and truckers for productivity improvements.
• Intermodal equipment providers issue a dire warning that chassis shortages in Southern California will persist into next year, but truckers say that is unacceptable.

 

Airlines

 

Amerijet International Airlines' Peak Season Surcharge will be effective from November 1, 2020 through December 31, 2020. The surcharge applies to all shipments originating in the continental United States.

 

Peak Season Surcharge

 

$0.10/kg with min. $5.00 per AWB (Based on Chargeable Weight)

 

• Limited air cargo capacity is colliding with strengthening demand, as technology product launches compete for space with general cargo and medical equipment.
• Rates to West Coast are around $8.68/kgs and rates to East Coast are around $8.09/kgs until October 31st. Space is tight.
• CZ cancelled ORD flight: 28.Oct to 30.Oct.
• CK services cancelled the direct flight services from PVG to ATL until further notice.
• CA services cancelled the direct flight services from PVG to DFW until further notice.
• K4 services has a limited flight from TAO/HFE/WUX to ORD; the other origin port at NKG is cancelled until further notice.
• New Charter flight from NGB to LAX/MIA by K4 services, Freq: Day 1/3/5 per week.
• New Charter flight from CGO to LAX by 5Y services, Freq: Day 2/5/7 per week.

 

 

Customs Updates

 

The U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) announced this week it will delay full implementation of the APHIS Core Message Set in the Automated Commercial Environment (ACE) until January 25, 2021. APHIS made this decision in response to stakeholder concerns about operational and economic setbacks caused by the COVID-19 pandemic. This action gives the trade community additional time to prepare for this change.

 

China is making up some ground on its U.S. trade deal commitments. “While export growth in September remained relatively stable—up 1.9% over the month before—China’s imports are surging, leaping 15% over August. Imports of pork and soy from the U.S. are driving the growth as China tries to uphold its commitment in phase 1 of the trade deal.

 

The President issued Sept. 30 an executive order declaring a national emergency to deal with the threat posed by the U.S.’ dependence on imports from foreign adversaries for “the critical minerals that are increasingly necessary to maintain our economic and military strength in the 21st century.”  These minerals are used in the production of goods such as cell phones, computers, automobiles, airplanes, advanced electronics, manufacturing equipment, transportation systems, defence systems, and cutting-edge medical devices.  First reports due this week.

 

Trucking

 

An analysis of shipper transaction data shows a marked slowing of spot market rate hikes in September after a turbulent summer, perhaps pumping the brakes on the rise of contract rates.

Long-haul trucking faces fiercer competition for truck drivers in the future and a shrinking pool of qualified driver candidates, ATA’s chief economist told the 2020 Transplace Shipper Symposium.

Available drivers have been hard to find with such a sudden and sharp rise in domestic and international container flows, placing a great deal of strain on the fluidity of the supply chain.

J.B. Hunt said intermodal results were worse than anticipated because of major network congestion in rail terminals and shippers sitting on containers, which may not ease until 2021.

 

Trending News

 

What an Early 2020 Holiday Shopping Season Means for Consumers & Supply Chains

 

Whether or not consumers, suppliers, and retailers are ready, the holiday shopping season is right around the corner!

 

Experts predict that due to evolving shopping habits, Covid-19, a delayed Amazon Prime Day, and general supply chain disruptions, consumers will start shopping for the holidays earlier than usual this year.

 

Consequences of choosing wrong Incoterms

 

The new Incoterms® 2020 rules have been effective since January 1st, 2020, and we are still seeing some confusion when it's time to pre-define trade responsibilities.

 

Using the wrong Incoterms® could result in delivery and payment problems, as well as incorrect customs declarations, which can have serious legal ramifications.

 

BRi ERP and Order Management Program

 

To ensure you maintain visibility to your shipments as they move through the supply chain, please take advantage of BRi PATHWAY.

 

The information in PATHWAY is real-time and available 24/7.

 

To obtain a login for your account, please respond to this email so we can get you started!

 

As a valued customer, we hope that you will continue to trust us to source the best options for your supply chain needs now and into the future. Should you have any questions regarding USA News, please contact your Customer Solutions Representative.

 

Keeping you updated,

BRi Customer Solutions Team

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