China Tariffs Could Spell Double Trouble for Importers—Here’s How

September 30, 2019

While brands and retailers are scrambling to figure out how to cover the cost of new tariffs, mulling whether to raise prices or reduce staff when the former is undoubtedly met with resistance, many are overlooking another critical cost: increased customs bonds.

Importers bringing goods into the United States have to prove to U.S. Customs and Border Protection that they can cover the costs of duties, taxes and any other fees associated with an import shipment valued at more than $2,500. The bulk of those bonds are continuous or annual bonds, which must cover 10 percent of all duties paid to Customs for the year.

The problem now is that with new punitive tariffs, the costs for those bonds are increasing—which also means companies’ borrowing power will be decreasing. And in the face of a possible recession, the position could prove unfavorable for many.

For the FULL story, please click HERE

Source:https://sourcingjournal.com

MSC C-TPAT suspension ends

September 30, 2019

Mediterranean Shipping Co. has regained privileges via the United States trusted trader program after a temporary suspension stemming from the June 17 seizure of 20 tons of cocaine from a vessel at the Port of Philadelphia. After the largest US drug bust took place onboard on the MSC’s ships, US Customs and Border Protection placed a 90-day suspension from C-TPAT which ended on Sept. 16. MSC vessels have been involved in three other drug-related incidents this year.

Source: FreightWavesJOC/ and Chamber of Shipping

 

The U.S. Customs Merchandise Processing Fee (MPF) Increased on October 1, 2019.

September 30, 2019

The U.S. Customs Merchandise Processing Fee (MPF) increased on October 1, 2019.

Pursuant to 84 Federal Register Notice 37902, published August 1, 2019 (CSMS 18-000465), and effective October 1, 2019, the MPF minimum for formal entries will increase to $26.79 and the maximum will increase from to $519.76

The MPF ad valorem rate remains the same at 0.3464%.

New Minimum = $26.79 ; Max = $519.76

For FULL table, please click HERE

Source: govinfo.gov

 

Costs of California Drayage Expected to rise under AB5

September 23, 2019

Motor carriers and third-party logistics companies see California’s new law on employee classification as universally negative for intermodal trucking, forcing further costs on an industry running on thin margins.

…AB5’s impact is particularly acute for port trucking. The Harbor Trucking Association, which represents carriers and drivers in the region, estimates about 80% of the 16,000 trucks that call on the local ports are independent, either working under their own operating authority or another’s.

For FULL story, please click HERE

Source:https://www.freightwaves.com

Alphaliner TOP 100 Carriers

September 23, 2019

Alphaliner releases ranking for TOP 100 Carriers by volume

APM-Maersk includes Maersk Line, Hamburg Sud, Safmarine, Sealand Asia, Sealand Americas and Europe & Med ranked the top place with 4,176,517 in total TEU. MSC came next with TEU 3,657,272. COSCO Group ranked the third place with TEU 2,966,582.

In term of market share APM-Maersk gained a total of 17.8%, MSC received 15.6% and COSCO had 12.7%…

Click HERE for complete ranking.

top100 carriers

top100 carriers2

Source: Alphaliner