December 8, 2017
Forwarders are scrambling for capacity as industrial action continues to hobble uplift out of Frankfurt Airport. And some expect the aftershocks to linger well into December. Strikes by two of the German gateway’s handling agents have resulted in severe congestion, limiting cargo capacity during an already stretched period for air freight. We are continually exploring with our partners in Frankfurt alternative gateways, with expectations that the problem would persist at least to the middle of the month. There are a limited number of flights able to offer cargo uplift, however, due to the issues with the cargo handling agents and the backlog. We expect capacity to remain extremely tight this week and into the next few weeks, and we are always looking for capacity at other airports in Europe. Lengthy discussions are believed to be trying to prevent further action following the Union of Ground Handling Agents’ decision to strike from 23-24 November. Our partner in Frankfurt said the Asia and European markets were already disrupted by slot restrictions, full transatlantic flights, sea freight shortages and sales booms such as Black Friday. For the 15th consecutive month, demand growth (5.9%) outstripped capacity growth (3.7%) in October, according to figures from IATA. And though lower than the September’s 9.2% demand was still above the average annual growth rate of 3.2% over the past decade.
December 6, 2017 – The U.S. Customs and Border Protection (CBP) recently issued the ‘Final Rule’ outlining changes to the In-bond process. The ‘Final Rule’ has an effective date of November 27, 2017, with a flexible enforcement period of 90 days.
Among the changes being implemented is the mandatory requirement for a 6-digit Harmonized Tariff Schedule of the United States (HTSUS) being applied for all in-bond cargo moves (adding Immediate Transportation on top of Immediate Exportation and Transportation & Exportation that currently require HTSUS).
During the flexible enforcement period, carriers will begin collecting HTSUS within the Shipping Instruction (SI) to meet the regulatory requirements. Accordingly, please guide your suppliers at origin that they are required to:
· Provide HTSUS codes with all cargo
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· HTSUS codes can be found at the United States International Trade Commission (USITC) website: https://www.usitc.gov/tata/hts/bychapter/index.htm.
Canaan Transport will work with our customers to help support this CBP initiative and keep customers posted on any further developments regarding this regulation.
A full copy of the ‘Final Rule’ published by the U.S. Government Publishing Office can be reviewed at : https://www.gpo.gov/fdsys/pkg/FR-2017-09-28/pdf/2017-20804.pdf
December 4, 2017 –
Eight governors have written a letter seeking a drastic expansion in the $20 duty-free limit Canada allows for online purchases. Their letter to Foreign Affairs Minister Chrystia Freeland and U.S. trade czar Robert Lighthizer says the NAFTA talks are an opportunity to review this policy.
Canada has one of the strictest duty-free limits in the world for online goods — a mere fraction of the $800 Americans can spend on sites like Amazon and eBay without paying taxes on foreign imports. Changing Canada’s limit is a high priority for the U.S. side in NAFTA talks.
An American source familiar with the talks tells The Canadian Press that’s one reason the U.S. mentions the issue and sets a specific $800 target in its published list of negotiating objectives. While other U.S. goals are vaguely worded and avoid using hard numbers, the source calls the issue an example of a firm American demand. In Canada, the debate pits importers versus bricks-and-mortar shops who warn that domestic retailers would be hit hard by a change in policy. Several U.S. state governors are pressing Canada for freer trade in online goods. Eight governors have written a letter seeking a drastic expansion in the $20 duty-free limit Canada allows for online purchases. Their letter to Foreign Affairs Minister Chrystia Freeland and U.S. trade czar Robert Lighthizer says the NAFTA talks are an opportunity to review this policy. Canada has one of the strictest duty-free limits in the world for online goods — a mere fraction of the $800 Americans can spend on sites like Amazon and eBay without paying taxes on foreign imports. Changing Canada’s limit is a high priority for the U.S. side in NAFTA talks. An American source familiar with the talks tells The Canadian Press that’s one reason the U.S. mentions the issue and sets a specific $800 target in its published list of negotiating objectives. While other U.S. goals are vaguely worded and avoid using hard numbers, the source calls the issue an example of a firm American demand. In Canada, the debate pits importers versus bricks-and-mortar shops who warn that domestic retailers would be hit hard by a change in policy.
Source : The Canadian Press
December 1, 2017 – Our 9th year of issuing our Connextions newsletter is now drawing to a close. If you would like to receive this on a monthly basis, please e-mail us at connextions@canaantransport.com
November 2, 2017
Today, Icecorp Logistics, a freight forwarder and customs broker here in Canada with offices in the United States, filed for bankruptcy and closed its doors. Canaan Transport has fielded many calls from customers who have already paid funds for services, or duties and taxes to be paid to the CBSA.
We recommend that affected customers contact the CBSA to discuss their accounts as it appears that funds may not have been fully reconciled and that monies left with Icecorp may not have been put towards the proper accounts required. Customers affected by this bankruptcy are encouraged to contact us to discuss your future cargo needs.
On both Monday and Tuesday, high winds caused closures of several hours at GCT Deltaport. Trucking companies were advised to rebook appointments where possible.
The electronic air waybill (eAWB) penetration rate in September was still well below the end of year target set by the International Air Transport Association (IATA).
The month came in at 50.9 percent, 11.1 percent below the 62 percent that IATA was aiming to achieve by December 2017.
Top airlines ranked by eAWB penetration were Flydubai at 100 percent, Kenya Airways at 99.3 percent and Cathay Pacific Group at 83.4 percent.
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> The Ministry of Commerce in China approved Maersk Line’s proposed > acquisition of Hamburg Süd on November 8.
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> The approval is subject to conditions, which are that Maersk Line commits > not to extend Hamburg Süd’s membership of a vessel sharing agreement (VSA) > currently active on the Far East Asia–West Coast of South America trade > route, and that it commits to terminate Hamburg Süd’s membership in a VSA on > the Far East Asia–East Coast of South America trade route on the earliest > date permitted.
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> Maersk Line further commits to not enter into VSAs with its main competitors > within five years of the deal closing.
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November 13, 2017 –
The US Customs and Border Protection has announced their final rule in eliminating the ability to prepare paper in-bond documents. If you require more information please contact our office.
November 13, 2017 –
The US Customs and Border Protection has announced their final rule in eliminating the ability to prepare paper in-bond documents. If you require more information please contact our office.