April 2022
By NNR USA In Uncategorised On 14th April 2022
MARKET UPDATE
The global supply chain continues to be strained.
Due to widening outbreaks of Covid-19, the Shanghai lockdowns have been extended into April. Lockdowns and ongoing virus testing have resulted in the truckers not being able to get to the docks, and containers continue to pile up at China’s biggest port.
The war in Ukraine has taken its toll on the transportation industry with flight cancellations, vessel port omissions, and rising fuel costs. Sanctions on Russia & Belarus continue to be added daily.
Plan on ongoing disruption into the 3rd quarter of FY 22 as this will have a ripple effect and impact timely deliveries to the U.S.
The NNR team will keep you updated to help you plan for the ongoing supply chain strain.
AIR FREIGHT
Tip of the Month
We recommend that shippers refrain from shipping non-urgent cargo to Shanghai Pudong Airport, as we are concerned that in the worst-case scenario, excess cargo may be left outside longer than normal, exposed to the elements due to lack of warehouse space and manpower.
War and Covid Disrupt the Air Cargo Industry
March was a tough month for the air cargo industry. Capacity and volumes dropped, but airfreight rates continued to rise. Flight cancelations related to Covid shutdowns and the war in Ukraine. Read More
Shanghai Covid Lockdown
Air freight is heavily impacted by the Shanghai region lockdown. Read More
OCEAN FREIGHT
Congestion Shifts to East Coast Ports
Port congestion is not limited to the U.S. West Coast. Shipments originating in Asia are seeking alternative ports of discharge to skip the congestion. Read More
West Coast Dockworker Contract Renewal Negotiations Start May 15
U.S. West Coast ports are handling ocean containers at record highs, with the port of LA closing out its best first quarter in history. The port congestion has decreased, but as we prepare for an early peak season, the focus will be on the port labor negotiations scheduled to begin on May 15. Read More
Tip of the Month
Continue to book early and consider alternative routings.
DOMESTIC TRANSPORTATION & WAREHOUSE
Small Package Fuel Surcharges
Fuel surcharges for popular small package delivery services are increasing. Learn about a strategy to help you manage costs. Read More
Transloads: Preparing for the 3rd Quarter
Now is the time to begin preparing for potential supply chain disruptions later in the year. There is a lot of uncertainty regarding capacity in late Q2 and Q3. The war in Ukraine, the possible west coast labor strike, and Covid add to the potential disruption shippers face. Read More
CROSS-BORDER: USA-MEXICO-CANADA
Mexico is the Top U.S. Trading Partner in February
Trade continues to grow with Mexico, most of the transport done by trucks. Find out what is changing with C-TPAT on the border. Read More
CUSTOMS BROKERAGE & TRADE COMPLIANCE
U.S. Suspends Normal Trade Relations with Russia and Belarus
Both countries are now subject to Column 2 duties with the potential to be subject to more in the future. Read More
Energy Products from Russia Banned
A new bill prohibits the importation of energy products from Russia. Learn which products are covered. Read More
Section 301 China Update
Read the latest news on a Court of International Trade 'opinion and order' in response to over 3,000 lawsuits that challenged List 3 & 4A. and check our Frequently Asked Questions on Section 301 China including a list of currently available exclusions. Read More
OFAC Sanctions & Program Information
Continue to monitor sanctions and restricted parties as new entities are added daily. OFAC offers a subscribe option on their website.
Tip of the Month
Commercial Invoices
Instruct your Suppliers to include important details on Commercial Invoices that are necessary for accurate Customs declarations.
Along with purchase orders, part numbers and descriptions with unit prices, the terms of sale should be indicated as well as the Country of Origin of the products.