August 2022
By NNR USA In Uncategorised On 18th August 2022
MARKET UPDATE
China exports, driven largely by U.S. consumer demand, are seeing signs of waning.
The major Chinese manufacturers are sharing that orders from the U.S. and overseas customers are slowing and anticipate a flat demand going into the 2nd half of the year.
Concerns over inflation and slowing demand from the American consumer will put a damper on the world’s second-largest economy and explains why the shipping spot rate market has shown signs of falling.
It will be interesting to see if the carriers will take vessels out of rotation to manipulate the shipping price.
AIR FREIGHT
August 2022 Air Market Update
Improvements in the air industry with more capacity and less congestion were seen this month. And the U.S. sanctioned a Venezuela-based cargo airline with a 180-Day Airline Export Privileges Suspension.
TIP OF THE MONTH
Inspections have become more stringent with hazardous materials.
Shipper's and Supplier's must comply with all IATA rules and regulations when shipping hazardous materials to avoid rejections, additional cost, and the possibility of audits.
FEATURE ARTICLE
California’s AB5 Law and its Impact on Trucking and Supply Chain Logistics
What do we know so far about AB5?
Gary Kendle, Domestic Logistics Consultant at NNR USA, will help explain the impact of California's AB5 Law.
OCEAN FREIGHT
August 2022: Ocean Port Update
Port congestion has worsened in the U.S. East Coast and Gulf Coast ports. But the market conditions are still fluid.
TIP OF THE MONTH
Avoiding heavily congested ports may help prevent cargo from being stuck for weeks.
Based on long vessel wait time, here's our list of top U.S. ports to avoid:
Savannah +/- 17 days
Houston +/- 18 days
Oakland +/- 15 days
Los Angeles +/- 16 days
TRADE LANE INSIGHT
Transloading Ocean Freight in Mexico
With current congestion and delays, Is there a better way to ship via ocean from Japan?
Learn more about moving freight from Japan to the U.S. using a transshipment point in Mexico.
DOMESTIC TRANSPORTATION & WAREHOUSE
Retailers Cancelling Orders Across All Categories
In June, Target and other retailers cancelled Billions of dollars of orders. In July, Walmart announce the cancellation of Billions of dollars of open purchase orders.
Projected Growth of E-Commerce Warehouses
The consulting firm International Analysts is predicting the e-commerce boom will continue to change the complexion of warehousing. They are reporting that 11% of worldwide warehouses are devoted to e-commerce and they project this to grow to 25% by 2027.
CUSTOMS BROKERAGE & TRADE COMPLIANCE
New Export Technology Controls Announced
The Bureau of Industry and Security (BIS) is implementing new controls on certain technology used in the gas turbine and semiconductor industries.
Section 301 China Latest
House Speaker Pelosi's visit to Taiwan sparked geopolitcal tension with China. Change on tariffs may not be seen until after November elections. Visit our Section 301 page for current status, exclusion information, and FAQs.
TIP OF THE MONTH
When using a Free Trade Agreement, Importers must ensure that their imported products can be substantiated with sufficient manufacturing records and country of origin backup.
U.S. Customs, through a CF 28 -Request for Information, will require an Importer to substantiate their claim.