UPDATE ON Mumbai Port Congestion

Further to our previous advisory. We would like to inform you that the operational go-slow

agitation (strike) by the labor parties at Nhava Sheva APM Terminal still continues which is

adversely affecting all cargo operations at the port.

 

Priority remains with discharge of import containers and only the balance

available moves (if any) can be used for loading of export cargo.

 

We sincerely request your comprehension for the consequences arising from the prevailing

situation at APMT at Mumbai/Nhava Sheva Port that is entirely beyond our control.

 

We will advise you of any further delays to your cargo.

NOVEMBER 15th GRI

Please note carriers in the ASIA TO USA trade have filed a Nov 15th GRI (GENERAL RATE INCREASE) with the hope of lifting their current rate levels, which have been weakening during the past several weeks. Through enforcing winter schedules, many carriers have opted to take vessels out of the trade in order to create demand.

 

The suggested amount from the Transpacific Stabilization Agreement (TSA) is $400 per 40’ cntr, but so far we have been notified of rate increases between $250 to $350 per 40’ cntr for the East Coast, West Coast and IPI (inland points) cargo depending on the carrier.

 

It seems that many carriers are following these recommended increases. We are waiting to finalize the total amount filed by the end of this week.

 

With an earlier Chinese New year (January 31) and space becoming tight, it would very unpredictable how long would this increase last, it will depend on how the market will revolve  in the next few weeks.

 

We will keep you informed of any developments.

Thanks,

Team WWL

Market Update / Space Reduction Program

All Worldwide Clients:

The G6 carriers ( Hyundai,  APL, Hapag, Mitsui,  NYK  and OOCL )have announced a winter space reduction program.  Please see JOC article below.  This action will create space shortages with the goal to increase the rates or at minimum keep them at current levels.  We are awaiting announcement from some of the other carriers.

This will increase the demand for space on all sailings /vessels.

#1  Instuct your factories/vendors to book early.  The sooner your shipments are booked the better we can insure sailing or find a suitable alternative .

The space in Oct for both USEC and USWC is getting tight because the carriers have implemented the winter space reduction  program.

CKYH and G 6 take away about 14,000 teu per week from USWC and about 10,000 feu from USEC, if this trend remain the space will be getting tight and rates will hold or go up. However there is one major deciding factor not yet know,  MSK, MSC and CMA, there is no news if they will also join the winter program action, if they do, space in the market will definitely get very tight and rate will go up, but it they don’t the chance of rate increase in Nov becomes less. We are still waiting for the announcement.

G6 Alliance Cancels Eight Asia-Europe Sailings for Winter

JOC Staff |

Members of the G6 Alliance have withdrawn eight Asia-to-Europe sailings, effective from late October 2013 to February 2014, in response to expected low demand during the winter season.

The void sailings will be made on the following Asia-North Europe services:

·         Loop 7 service in week 44, with an estimated time of arrival in Qingdao, China, on Oct. 28.

·         Loop 4 service in week 47, with an ETA in Ningbo on Nov. 23.

·         Loop 6 service in week 48, with an ETA in Kaohsiung, Taiwan, on Nov. 25.

·         Loop 1 service in week 1, 2014, with an ETA in Kobe, Japan, on Jan. 3.

·         Loop 6 service in week 7, 2014, with an ETA in Kaohsiung on Feb. 10.

Void sailings will also be made on the following Asia-Mediterranean services:

·         EUM service in week 44 with an ETA in Busan, South Korea, on Oct. 27.

·         EUM service in week 48 with an ETA in Busan on Nov. 24.

·         EUM service in week 7, 2014, with an ETA in Busan on Feb. 9.

The G6 Alliance noted that it will continue to offer a variety of services between the Far East and Europe covering all major port pairs with weekly sailings, and will make service adjustments where necessary. The G6 Alliance members are APLHapag-LloydHyundai Merchant Marine, Mitsui O.S.K. Lines, NYK Line and OOCL.

US GOVT SHUTDOWN IMPACT

Customer Advisory: U.S. Government Partial Shutdown Update #1

U.S. Customs and Border Protection (CBP) and related cargo clearance agencies continue to operate under normal working hours with no delays in cargo operations experienced at this time. We will continue to provide additional information and updates if this status changes.

—————————

Here is an update regarding potential US GOVT SHUTDOWN impact.

Import:

– Fish and Wildlife Services’ website is down; Manual forms will need to be submitted to F&W

including documents and checks

– FDA is operating with only 35 percent of staff; Delays are expected

– EPA – 97 percent of workers are shut down

– Steel License Office is closed. Temporary license number to be used is “STEELX103”

– FCC is closed

– CBP Technicians and Program Managers will not work, which will cause delays in Bonds and

Licensing, In-bond Desk, Processing FDA Refusals

– USDA website is down but the agency remains open

– FTSR website has been turned off

– HTSUS website has been turned off

Export:

– Census website (including FTR, schedule B) is down

– DOS, BIS, and OFAC websites appear operational at this time. DOS website states that they

will operate normally until at least 10/4, however other licensing agencies may currently be

affected.

 

If you have any questions regarding this topic, please contact us HERE.

Damage collections for ISF non-compliance to begin

U.S. Customs and Border Protection (CBP) will begin full enforcement of the Importer Security Filing requirement on July 9, 2013.

“On that date, the agency will begin to issue liquidated damages for ISF violations, such as filing incomplete, inaccurate or late documentation.cbpness

The ISF rule went into effect on Jan. 26, 2009, but for the first year the program had no sanctions so that shippers and carriers could learn how to collect and file the necessary data, develop software systems that could communicate with CBP, or farm out filing to customs brokers and other third parties.

CBP began enforcing the rule in January 2010. It has used its authority to place holds on containers with shipments that don’t have documentation in order, typically upon arrival in the United States, and can order non-intrusive or full inspections of cargo if the ISF data indicates something might be amiss about a shipment, but to date has not issued any damage claims against filers.

For ocean carriers, CBP may refuse to grant a permit to unload the merchandise if they violate the vessel stow plan requirement.

CBP requires importers to submit 10 pieces of data, such as the name and location of the manufacturer, associated with international shipments moving by ocean container. The data must be electronically transmitted 24 hours prior to cargo loading on the vessel and carriers must subsequently provide their vessel stow plans and container status messages. The ISF rule is commonly referred to as “10+2″ because of the two data sets required.

CBP originally said it would start issuing liquidated damages associated with ISF filing mistakes in the fourth quarter of 2010. Liquidated damages is a Customs term that means an importer or its agent failed to meet the conditions of a bond. They are technically different from penalties, which are issued in response to smuggling and other direct violations of law. The ISF rule allows for liquidated damages of $5,000 per violation, which could reach $10,000 on a shipment if amendments to the ISF are filed with errors.

The phased approach to enforcement was designed to minimize disruption to the trade community as it adapted to a new, complex security regime aimed at using advance data for targeting shipments with smuggled contraband or terrorist weapons.

CBP has stressed that every liquidated damage enforcement action instituted by a port will be reviewed by CBP headquarters personnel before being issued, according to a customer note from trade insurance broker Avalon Risk Management.”