Big Three Container Lines Propose Rate Rise from Next Month

(Cargonews Asia)

The world’s top three container lines have announced freight rate increases, according to shipping industry sources.

Maersk has announced rate increases to be effective from January on all container cargo shipments from Asia to Central America and the west coast of South America, reported The Hindu. The rates proposal calls for an increase between US$250 and $300 per TEU. Read more here.

WTO Secretariat Reports Drop in Anti-Dumping Investigations and Measures

(WTO)

The WTO Secretariat reported that during the period 1 January – 30 June 2010, the number of initiations of new anti-dumping investigations showed a 29% decrease compared with the corresponding period of 2009. The number of new measures applied also decreased during the first semester of 2010 when compared with the first half of 2009.

In particular, during January-June 2010, 19 WTO Members reported initiating a total of 69 new investigations, compared with 97 new investigations reported by 18 WTO Members for the corresponding period of 2009. A total of 14 Members reported applying 59 new anti-dumping measures during the first semester of 2010, with a decrease of 5% than the 62 new measures reported by 16 Members for the corresponding period of 2009. Fifteen new investigations were opened by developed Members and 10 out of 59 new final measures were applied by developed Members during the first half of 2010. This compares with 15 new investigations begun and 15 new measures applied by developed Members during the first half of 2009.

The Members reporting the highest number of new initiations during January-June 2010 were India, reporting 17 new initiations, followed by the European Union, reporting 8 new initiations, Argentina (7), Brazil and Israel (5 each). Other Members reporting initiations were Australia and China (4 each), Indonesia and Korea (3 each), Colombia, Thailand and the United States (2 each), and Canada, Chile, Jamaica, Mexico, Chinese Taipei, Turkey and Ukraine (1 each). These figures represented increases for India, the European Union, Brazil and Israel, and declines for Argentina, China, Indonesia, Colombia, the United States, Canada, Turkey and Ukraine. …

Read the complete press release, and link to the individual reports in the series here.

Consumer Complaint Website Will Test Wisdom of Crowds

(GovExec.com – Charles S. Clark)

Consumers who believe they have been harmed by unsafe toys or appliances, for the first time starting in March 2011, will be able to see their complaints screened and displayed on a public website maintained by the Consumer Product Safety Commission. But commission members split along partisan lines when they voted 3-2 on Nov. 24 to finalize the rule creating the website, with industry and consumer groups at loggerheads over the tool’s benefits and risks. Read more here.

Michigan Senate Delays Windsor-Detroit Bridge Construction

(Truck News)

But DRIC is ‘in no way’ dead says OTA president

The Michigan Senate has rejected a last-minute attempt to secure passage of the legislation which would have enabled the construction of a new bridge between Windsor and Detroit as proposed by the Detroit River International Crossing (DRIC) process.

Ontario Trucking Association president David Bradley called the Senate’s action on Thursday “unfortunate”, saying, “It’s extremely disappointing that the Michigan Senate has chosen to stall progress on this important project, costing Michigan and Ontario tens of thousands of construction jobs next year, but even more seriously, damaging the economic recovery of the region by signalling to potential investors that the all important trade link between Ontario and Michigan will continue to be tenuous. The impact on investment decisions and on manufacturing jobs is the real story of the Senate’s decision.” Read more here.

FedEx to Raise Ground Rates 4.9%

(Transport Topics)

FedEx Corp. said Friday it would raise shipping rates for its Ground and Home Delivery units by a net average of 4.9%, effective Jan. 3.

Rates will actually increase an average of 5.9%, but FedEx will also adjust the threshold at which the fuel surcharge begins, reducing it by one percentage point, the carrier said in a statement. Read more here.

Rate change information is available from the carrier at here.

WTO’s Face-to-Face Hearings on COOL Wrap Up

(GrainNews) 

More questions are still to come from the World Trade Organization’s dispute settlement panel as its final face-to-face hearings conclude on Canada’s challenge of U.S. mandatory country-of-origin labelling (COOL).

The hearings ended Thursday in Geneva, Switzerland, with a month to come devoted to responding to written questions from the WTO panel, the Canadian Cattlemen’s Association said in a release Friday.

The panel’s decision is expected to be published in late July, the CCA said, noting the panel “is certainly not showing its hand” regarding the outcome. Read more here.

More Tariff Schedule Modifications for Footwear Proposed

(World Trade Interactive) 

The International Trade Commission will make additional recommendations on the addition of new subheadings in the Harmonized Tariff Schedule of the U.S. for certain footwear.

On Aug. 9, the ITC submitted to the president a report with its recommendations on the addition of an Additional U.S. Note and the amendment of certain classification provisions in HTSUS Chapter 64 relating to certain footwear featuring outer soles of rubber or plastic to which a layer of textile material has been added. These changes would reflect decisions of the World Customs Organization’s Harmonized System Committee on the classification of particular footwear. The president subsequently submitted a report containing the ITC’s recommendations to the House Ways and Means and Senate Finance committees for their review.

On Nov. 8, however, the ITC received a letter from the Office of the U.S. Trade Representative requesting that it make further recommendations, based on new submissions to be filed by interested parties relating to entries liquidated prior to the ITC initiation of this investigation on April 13, on the appropriateness of inserting new tariff lines under HTSUS 6404.11 and 6404.19 in addition to those already recommended. USTR noted that while the ITC’s August report correctly included descriptions specifying that footwear falling under certain new tariff lines under current HTSUS 6404.11 and 6404.19 feature uppers of textile material other than vegetable fibers, because these descriptions appeared for the first time in the final report interested parties may not have recognized the need to submit information on the tariff classification and rate of duty applied to imports in liquidated and undisputed entries of other footwear (e.g., having uppers of manmade fibers) falling into these new subheadings so that the ITC could maintain tariff rate neutrality in making its recommendation. Read more here.

S.Korea, U.S. Near Deal to Salvage Trade Pact

(Reuters – Doug Palmer)

The United States and South Korea edged closer on Friday to a deal to revive a stalled free-trade agreement, subject to review by President Barack Obama and South Korean President Lee Myung-bak.

“We made substantial progress in our discussions,” U.S. Trade Representative Ron Kirk said in a statement after a final meeting with South Korean Trade Minister Kim Jong-hoon. “It’s time for the leaders to review this progress before we move forward,” Kirk said.

Once that has been done, “then we will synchronize the same time and date to go into a detailed announcement,” the South Korean trade minister said before heading to the airport. Read more  here.

Canada Encouraged by Jobs Data, Worries About U.S.

(Reuters)


Finance Minister Jim Flaherty said on Friday he was encouraged by data showing the jobless rate in Canada fell in November but added he was concerned by gloomy U.S. employment figures. Statistics Canada said employers added 15,200 workers last month, with the jobless rate falling to 7.6% from 7.9% in October. The U.S. unemployment rate jumped to 9.8% from 9.6%.

“I am encouraged by the unemployment numbers this morning in Canada,” Flaherty told a news conference in Montreal. “It’s a bit discouraging to see the unemployment numbers in the United States ... there’s a persisting concern with respect to the American economy,” he said. Read more here.

Summary statistics from the Labour Force Survey, and links to the data files, are on the Statistics Canada website here.

Bersin: Security Rule, Trusted Trader Policy Mesh

(American Shipper)

The involvement of cargo airlines in developing a rule that would require the submission of advance data prior to departure from a foreign airport fits with the new mindset at U.S. Customs that new security measures should enhance the efficient movement of goods, Commissioner Alan Bersin told AmericanShipper.com.

The Department of Homeland Security has said it is exploring ways to get shipment information to feed its automated targeting system before the manifest is filed during flight so that dangerous cargo, like that from Yemen recently discovered on U.S.-bound freighters, can be stopped in the country of origin. […]

At least two pilot projects are being developed to inform the decision-making process. Read more here.

News from TAHOCO: Weekly Updates

An updated list of recently published US government memorandums, notices, regulations and decisions for the week ending December 3, 2010 is now available on our website here.

A Global Solution for the EU Import Control Systems

(Supply & Demand Chain Executive – Stefan Busselot, Descartes Systems Group)

New customs manifest filing requirements in the European Union will pose new challenges for carriers ... and shippers, too

As global supply chains grow in complexity, regulatory and customs authorities are becoming more ambitious in implementing electronic customs filing processes to improve security and speed processes. While many of these filing requirements have similarities, additional complexities need to be considered when crossing multiple jurisdictional boundaries – an especially challenging issue when dealing with European Union (EU) compliance demands.

As with other regions, the EU is introducing customs compliance regulations to standardize and automate its customs filings process. As the world's most important exporter and second most important importer, according to a 2008 EU Commission report, the EU's efforts to address the security and automation of trade shipments through electronic customs initiatives will have a significant impact on exporters and importers across the global supply chain.

Specifically, as of January 1, the EU's Import Control System (ICS) and Export Control System (ECS) customs manifest filing processes and requirements take effect. The burden of supplying advanced shipment information for products en route to the EU, or going to other destinations via the EU, will now rest with the carriers. This transition presents process change requirements for non-EU exporters and carriers alike. Read more here.

Wood Packaging Material from Canada May be Removed from Treatment, Marking Exemptions

(World Trade Interactive)

The Department of Agriculture’s Animal and Plant Health Inspection Service is proposing to amend its regulations to remove the exemption that allows wood packaging material from Canada to enter the U.S. without first meeting the treatment and marking requirements that apply to wood packaging material from all other countries. APHIS states that this action is necessary to prevent the dissemination and spread of pests via wood packaging material from Canada. Comments on this proposal are due by Jan. 31, 2011.

APHIS regulations restrict the importation of many types of wood articles, including wood packaging materials such as pallets, crates, boxes and pieces of wood used to support and brace cargo. The introductions of exotic plant pests that pose a serious threat to U.S. agriculture and to natural, cultivated and urban forests, such as the pine shoot beetle and the Asian longhorned beetle, have been linked to the importation of WPM. As a result, imports of WPM from countries other than Canada are subject to rigorous requirements, including either heat treatment or fumigation with methyl bromide.

In contrast, the regulations provide a general permit that authorizes the importation of certain unmanufactured wood articles, including WPM, from Canada provided that they are accompanied by an importer document stating that they are derived from trees harvested in, and have never been moved outside of, Canada. These less restrictive requirements are based on the premise that the forests in the U.S. share a common forested boundary with Canada and therefore share to a reasonable degree the same forest pests. However, a USDA pest risk analysis determined that there are some unique forest pests and pathogens that are established in Canada and have the potential to be introduced or reintroduced into the U.S. via the movement of WPM.

APHIS acknowledges that the proposed removal of the treatment and marking exemption would have a direct effect on Canadian manufacturers of pallets, which may affect importers and final consumers of goods transported on pallets imported from Canada. However, because the cost of a pallet is a very small share of the bundle of goods transported on pallets, cost increases due to the treatment requirements are not expected to significantly affect domestic consumers and thus would not have a measurable impact on the flow of trade. The proposed changes are also not expected to reduce the amount of goods shipped from Canada given trends in imports from all other origins since implementation of the WPM treatment standards in 2005. For more details, access the Federal Register notice.

U.S. Wildlife Import/Export Inspection Fees for 2011

(CIFFA eBulletin)

On December 9, 2008, the U.S. Fish and Wildlife Service published a final rule that set import/export inspection fees for the period 2009-2012. The fee schedule established by that rule provides yearly increases for fees paid by wildlife importers and exporters. Groups affected by the 2011 fee adjustment include commercial importers/exporters; non-commercial importers/exporters using non-designated ports; anyone importing or exporting live wildlife and/or protected species; and those requiring overtime services. The U.S. Fish and Wildlife Service will implement new inspection fees on January 1, 2011. The new fees can be found here.

Senate Passes Sweeping Law on Food Safety

(New York Times – Gardiner Harris and William Neuman)

The Senate passed a sweeping overhaul of the nation’s food safety system on Tuesday, after tainted eggs, peanut butter and spinach sickened thousands of people in the last few years and led major food makers to join consumer advocates in demanding stronger government oversight.

The legislation, which passed by a vote of 73 to 25, would greatly strengthen the Food and Drug Administration, an agency that in recent decades focused more on policing medical products than ensuring the safety of food. The bill is intended to keep unsafe foods from reaching markets and restaurants, where they can make people sick – a change from the current practice, which mainly involves cracking down after outbreaks occur.

Despite unusual bipartisan support on Capitol Hill and a strong push from the Obama administration, the bill could still die because there might not be enough time for the usual haggling between the Senate and the House, which passed its own version last year. Top House Democrats said Tuesday that they were considering simply passing the Senate version to speed approval but that no decision had been made. […]

While food safety advocates and many industry groups prefer the House version because it includes more money for inspections and fewer exceptions from the rules it sets out, most said the Senate bill was far better than nothing. Read more here.

 

New Guidelines on Air Cargo Security on the Way

(International Freighting Weekly – David Badger)

But ICAO stops short of call for 100% freight screening

The UN agency that oversees aviation is ready to issue new guidelines for cargo security to counter al-Qaida’s new mail-bomb strategy, but is stopping short of calling for 100% screening of packages, as some US lawmakers have urged. 

Proposed changes by the International Civil Aviation Organisation (ICAO) focus on supply chain security, and checking outbound air freight before it even reaches the airport. Draft guidelines will go out to all 190 member countries in the next few weeks, the agency says. Read more here.

The Rocky Road to Rio: What Shippers Need to Know About Doing Business in Brazil

(DC Velocity – Toby Gooley)

The “Road to Rio” is a busy one these days. Brazil sailed through the global economic recession relatively unscathed, and its economy is more stable today than perhaps at any time in its history. A growing middle class has sparked demand for housing and retail goods. All of this has combined to make Brazil one of the world’s few economic bright spots – and a very attractive market for manufacturers, retailers, and the businesses that serve them.

That’s why companies from around the globe are moving into Brazil in a big way. But like the manufacturers that rushed into China more than a decade ago, they’re discovering that new markets can present new challenges. To make it in Brazil, businesses have to adapt to the country’s unique logistics environment and play by some often-mystifying rules. Here’s a brief look at just a few of Brazil’s many challenges and some strategies for dealing with them. Read more here.

 

NAFTA Trade Rose 19.3% in September

(Journal of Commerce Online – Joseph Bonney)

Comeback from recession falls below 2008 level

Trade using surface transportation between the U.S. and Canada and Mexico totaled $68.3 billion in September, up 19.3% from a year earlier, the Transportation Department reported. Despite the increase, the value of surface-transportation trade between the U.S. and its North American Free Trade Agreement partners was 4.8% below levels of September 2008, when the financial crisis hit. Read more here.