OCTOBER TRADE NEWS UPDATE

[DETROIT, Michigan– October [5], 2020]

Cavalry Logistics has been operating as a Customs Broker and Freight Forwarder for over Thirty Years. We are experts in International Trade. Below are a few updates from the industry.

PORT CONGESTION:

Port congestion in the US and beyond continues to be an issue regarding the smooth transfer of containerized freight into the US.   For LCL, due to the continued impacts of Covid-19, many LCL providers are experiencing equipment and capacity shortages that are contributing to IPI delays nationwide.  In particular, the Los Angeles and New York gateways are feeling most of the pinch. Delays in transit time are possible and expectations are for these to continue into the 3^rd quarter of 2020 and beyond!

FCL MOVES:

FCL moves are also suffering due to port congestions here in the US major gateways, but these delays are also being felt over several major Canadian ports, Vancouver, Prince Rupert and Montreal.  In addition to that, containerized shipments out of Brazil have also been heavily impacted.   With several blank sailings previously, this has artificially inflated demand for FCL out of the region increasing delays and transit times.  

Asia FCL imports are finally starting to level off and prices seeing some reductions from previous highs.  We expect this to continue as US peak season wanes and demand lightens. 

US exports continue to hold extremely low-level costs due to demand overseas for empty containers.  Issues on the US side though have limited exports due to equipment shortages in some major markets, making timing an issue.  

Other freight impacting JOC articles found here:

• CMA CGM battles to restore systems a week after cyber attack-
  • https://www.joc.com/maritime-news/cma-cgm-battles-restore-systems-week-after-cyber-attack_20201005.html
• Freight ‘imbalance’ pushing up truck rates—
  • https://www.joc.com/trucking-logistics/truckload-freight/joc-uncharted-freight-%E2%80%98imbalance%E2%80%99-pushing-truck-rates_20201001.html       
• What is new with US Customs? Click the link below for the US Customs Trade News. This is published by US Customs.
  • https://www.cbp.gov/sites/default/files/assets/documents/2020-Aug/Trade-News-Snapshot-V2-I5-FINAL-1.pdf
• There is a change to Merchandise Processing fees. The new rates for formal entry are $27.23 min $528.33 max.
  • https://www.federalregister.gov/documents/2020/07/29/2020-16450/cobra-fees-to-be-adjusted-for-inflation-in-fiscal-year-2021
• Canada/US Land border restrictions for non-essential traffic extended until October 21^st, 2020.
  • https://www.canada.ca/en/public-safety-canada/news/2020/09/canada-us-extend-temporary-non-essential-travel-restriction.html
• USDA to Provide Additional Direct Assistance to Farmers and Ranchers Impacted by the Coronavirus
  • https://www.usda.gov/media/press-releases/2020/09/18/usda-provide-additional-direct-assistance-farmers-and-ranchers
• News letter from US Customs:
  • https://www.cbp.gov/sites/default/files/assets/documents/2020-Sep/Trade%20News%20Snapshot_V2_I6_FINAL.pdf
• Beginning October 13, 2020 all imports of steel will be required to report the country of melt and pour.
  • https://hq-web03.ita.doc.gov/
• Brexit: All you need to know about the UK leaving the EU
  • https://www.bbc.com/news/uk-politics-32810887
• September 18- COVID-19 CBSA Commercial and Trade Update
  • COVID-19 Commercial Update to Industry Stakeholders, September 18, 2020
• Notice of initiation of investigation
  • https://www.cbsa-asfc.gc.ca/sima-lmsi/i-e/rb32020/rb32020-ni-eng.html

Get in touch with us!

4444 Wyoming Ave. Detroit, Michigan 48216 | Phone: 313-965-8299 | Fax: 313-965-7399

For more information on Cavalry Logistics International, please visit www.shipwithU.com/international.

For more information on Universal Logistics Holdings, Inc., visit www.universallogistics.com.