Soaring Cost of Trucking

Higher delivery costs might be a driving factor to accelerating inflation! A shortage of drivers, new regulations (see February 2017 article on ELD’s), and solid demand are driving up rates. Combine this with higher materials cost, there is immense pressure on goods producers to seek relief from their customers. Recent history had wage gains that matched the rate of inflation. However, companies today are growing more desperate to find drivers to meet demand. With that trend, we will see the higher costs associated with finding those drivers will be passed along to the consumer.

China Customs Advanced Manifest (CCAM) Requirements

Not unlike the USA, Europe or Japan, China has implemented new security procedures for all cargo coming into, going out of, or passing thru Chinese ports and airports as of 1 June 2018. Failure to comply with requirements will result in non-loading of cargo onto vessel or aircraft. Please take note of the information required: Requirements Notes For Consignor Company Code, Phone Number Mandatory Contact Person’s Name and Phone Number Mandatory Authorized Economic Operator (AEO) Status Optional For Consignee Company Name Mandatory Company Code, Phone Number Mandatory if Consignee is not “To Order” Contact Person’s Name and Number Mandatory if Consignee …

World Carriers Survive Despite Government Subsidies

How can an ocean carrier survive a market where rates are plummeting and capacity is wide open? How can they continue in business when their average in-take is lower than their break-even point? In a market economy, logically, that cannot happen. BUT, when national pride and the need to sustain an otherwise sagging industry like ship-building take precedence, then governments can be moved to subsidize their flag carriers to make sure they are viable. However, for those carriers who are publically and privately held,  this seems grossly unfair as they turn to conventional methods to support their efforts. So, while …

Japan’s K Line, MOL & NYK are now ONE

As of April 1, 2018, Japan’s big three shipping groups commenced joint service under the name ONE (Ocean Network Express) . The integration came as a result of sluggish cargo demand, oversupply and historic low freight rates. Combined, the new joint venture, headquartered in Singapore, will be the 6th largest carrier in the world. The container shipping industry has struggled in recent years due to a decline in container growth rate and the rapid influx of newly built vessels. These two factors have contributed to imbalance of supply and demand which has destabilized the industry and created an environment that …

ELD Mandate – The Electronic Logging Device

The congressionally mandated ELD’s  are intended to help create a safer work environment for drivers, and make it easier and faster to accurately track, manage, and share records of duty status (RODS) data. An ELD synchronizes with a vehicle engine to automatically record driving time, for easier, more accurate hours of service (HOS) recording. The Federal Motor Carrier Safety ‘s (FMCSA) hours of service (HOS) rules are designed to eliminate the type of drowsiness that can lead to crashes. Although many commercial motor vehicle (CMV) drivers feel that they know when they are getting drowsy, various laboratory tests have shown …

Congress Has Not Approved Extension of GSP

Barring Congressional action, the Generalized System of Preferences (GSP), special program indicator (SPI) “A,” “A+” and “A*” expired for goods entered or withdrawn from warehouse after midnight, December 31, 2017. The Generalized System of Preferences (GSP) provides duty-free treatment to goods of designated beneficiary countries. The program was authorized by the Trade Act of 1974 to promote economic growth in the developing countries and was implemented on January 1, 1976. The GSP periodically expires and must be renewed by Congress to remain in effect. As announced by Customs and Border Protection, the 2015 GSP reauthorization (H.R. 1295) will expire on …