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Ocean Fast Facts
Which Southeastern U.S. seaport handled 1.37 million TEUS during the fiscal year 2009 and boasts the deepest harbor in the Southeast U.S?
- Wilmington, NC
- Savannah, GA
- Charleston, SC
- Jacksonville, FL
Correct Answer: C. Charleston, SC
Despite a decline in global shipping during the fiscal year of 2009, the Port of Charleston handled 1.37 million 20-foot equivalent container units. The port is operated by the South Carolina State Ports Authority (SCSPA), secured several new major business accounts and has recently extended a contract with shipping giant Mediterranean Shipping Company through 2017.
Sources: www.port-of-charleston.com/spa/news_statistics/news/pressroom/
pressroom.asp?PressRelease=245
Through Bill of Lading
Definition: A through bill of lading is a shipping term in which a single bill of lading covering receipt of cargo at the point of origin for the delivery to the ultimate consignee, using two or more modes of transportation. Often used on ocean bills of lading.
Through Bills of Lading ... and the Rotterdam Rules?
For years, limits of liability on ocean freight bills of lading have generally been governed by COGSA, or the Carriage of Goods by Sea Act, the Hague Rules, the Hague-Visby Rules and the Hamburg Rules. The Rotterdam Rules have replaced those mandates with the objective of achieving uniformity of law in the field of maritime carriage. For example, COGSA rules essentially set ocean freight liability limitations at $500 per package for carriage of goods by sea.
By September 23, 16 countries had ratified the Rotterdam Rules, a new UN convention describing the rights and obligations involved in the maritime carriage of goods.
The Rotterdam Rules are intended to modernize and simplify the process a shipper or insurer must go through to recover damages for cargo lost or damaged at sea. Most importantly, the rules more clearly recognize intermodal door-to-door transport, outside of the traditional ocean freight portions of the supply chain. Essentially, the new ruling will cover goods in transit by rail or truck on land legs of an ocean voyage.
If they are ratified by the U.S. Senate, the Rotterdam Rules will replace the 1936 Carriage of Goods by Sea Act. The Rotterdam Rules, which bring more clarity regarding the responsibility and liability of all parties involved in maritime carriage, will officially come into force one year after 20 countries have ratified it. The U.S., Greece, Norway and the Netherlands, all major trading and maritime nations, signed the convention, along with Congo, Denmark, France, Gabon, Ghana, Guinea, Nigeria, Poland, Senegal, Spain, Switzerland and Togo. Together, the signatories account for approximately one-third of world trade.
Source: http://news.xinhuanet.com/english/2009-09/24/content_12103694.htm and http://www.joc.com/node/413570
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Port Congestion in Venezuela Continues
Due to the recent nationalization of Venezuelan ports on July 31, 2009, warehouses, ports and container yards have come under the authority of the Bolipuertos, or National Port Authority. Currently, the main ports in Venezuela such as Puerto Cabello, Maracaibo, Valencia and La Guaira continue to report congestion. As a result, several of the main ocean carriers servicing Venezuela have enacted congestion port surcharges. Please be aware of these surcharges and contact your AIT representative to verify the specific surcharge for your cargo.
MSC moves to the PNCT terminal at the Port of
New York / New Jersey
Several AIT customers utilize services with Mediterranean Shipping Co. (MSC) to and from the port of New York/New Jersey. MSC announced they will transfer vessel calls at the Port of New York and New Jersey from Maher Terminals to the adjacent Port Newark Container Terminal (PNCT), effective Oct. 1. The terminal covers 180 acres and has an estimated annual capacity of 1 million 20-foot equivalent units. The move will make MSC the terminal's largest customer.
Source: http://www.joc.com/node/413648
A Reminder on 10 + 2 Ocean Imports
As earlier reported, the United States Customs and Border Protection 10+2 or ISF program will be enforced effective January 26, 2010. Submission of timely and correct ISF data is the ultimate responsibility of the importer of record.
AIT has been participating in official U.S. Customs and Border Patrol ISF seminars and educating customers and agents alike to ensure ISF data is managed properly. Should you have comments about the 10+2 required data elements, please contact your AIT representative. For a copy of current documentation relating to the ISF program, please refer to the following link:
http://www.cbp.gov/xp/cgov/trade/cargo_security/carriers/security_filing/
Express your freight - LCL Express!
AIT recently announced the launching of a new LCL program from Shenzhen/Yantian/Hong Kong and Shanghai to the United States west coast, with additional destinations soon to follow.
The product, called LCL Express, offers industry leading LCL transit times on dedicated weekly Cosco vessels via Los Angeles through our vendor partner, COSCOEx. Transit times of 21 to 23 days are available.
Combining direct dedicated weekly boxes with expedited delivery services to door locations throughout the Continental United States, the service offers an economic alternative to air freight, or expedited LCL solutions at a small price premium.
AIT's LCL Express service was introduced to supplement AIT's successful FCL Ocean Express program. Ask your AIT representative for more details and service specifics!
Algeria - New Requirements!
Effective August 1, 2009 a new law went into effect in Algeria. Part of the law stipulates that all import cargo must be covered by a Letter of Credit issued by an Algerian bank. If a Letter of Credit is not in place, it will be almost impossible for consignees to customs clear, pick up or remove cargo from Algerian ports.
Both AIT and our agent must abide by Algerian law and cannot be responsible for any consequences that may incur due to non compliance. It is the responsibility of the shipper of record to ensure that shipments are covered by Letters of Credit.
As always, we try to keep you informed of the latest requirements in order to ensure smooth handling of your export cargo. Please contact your local AIT representative should you have any questions or concerns.
Reefer Consumption Surcharges
In addition to charging for "special equipment," such as refrigerated ocean containers, ocean lines such as CMA-CGM have implemented an additional surcharge for "reefer consumption." These charges relate to additional fuel and monitoring of the refrigerated cargo while in transit. The charge is relatively "new" to the industry; in the past, items such as fuel were broken out as a fuel/bunker line item or lumped into the base ocean rate of the reefer container.
October Congestion Alert!
At press time, certain port locations were reporting congestion. Port areas to be aware of during the month of October include:
+ Valencia, Spain (since mid-September)
+ Venezuela Ports (Puerto Cabello)
+ North African Ports (Tripoli / Algiers)
+ A short term overbook / backlog situation was reported in the 3rd Week of September for ports in China (Yantian / Shenzhen / Shanghai / Ningbo) and Hong Kong leading into Mid Autumn Festival on October 1.
Please be advised that ocean carriers may temporarily enact "Port Congestion Surcharges" in times of peak volumes.
October Export Update - Demand for U.S. Export Shipments Remains High
In late September, ocean carriers report that an ongoing demand exists for U.S. export containers at both port and inland container depots. This stems from the continued reduction in import capacity into the United States and the simultaneous high volume demand on lower capacity export trades. Trades remaining "tight" on equipment availability and vessel space, especially or U.S. exports to Brazil and North Europe.
AIT continues to recommend that exporters plan early for booking export shipments, allowing a minimum of 48 to 72 hours for standard equipment and additional time for special equipment such as open tops or flat racks. Planning early will ensure equipment is available and vessel space can be accommodated by container size and type to satisfy your booking needs. Less than container load (LCL) booking availability remains wide open.
AIT would like to remind our customers moving special equipment to allow for ample planning and booking time for special equipment, such as refrigerated and flat rack / open top equipment. Speak with your AIT representative to address your specific FCL, LCL or breakbulk shipment needs.
2009-2010 Trans Pacific Imports - October Update on GRI and PSS
As a follow up to earlier Trans Pacific Import reports as discussed in the September 2009 edition of the AIT eNewsletter, the August "GRI" has passed and has either been "rolled" into existing rates, bringing up the base rate or any new ocean rates are now being negotiated with a new "post August 10th" GRI level. Additionally, it appears that the Peak Season Surcharge (PSS) has been mitigated or reduced by the ocean lines as October 1st approached. In some cases, certain carriers have agreed to waive PSS on select services. The situation is ever-changing, so please speak with your AIT representative for updates.
On a separate, yet important note, the "Peak of Peak" came slightly early this shipping season due in part to the October 1st National Holiday and Mid Autumn Festivals in China. There was a "spike" in shipments resulting in limited vessel space from Chinese ports during the second half of September as exporters in Asia rushed to book space on the reduced Trans Pacific Inbound capacity. The market is adjusting to this reduced capacity as major carriers such as MSC, CMA and Maersk slashed available vessel space last month.
AIT also reported in the September 2009 edition of the AIT eNewsletter that several lines were reducing capacity, further highlighting that carriers are making solid efforts to fill their ships. As a result, the August 10th GRI held relatively firm as carriers continue to cite huge reported losses in 2008 and the earlier parts of 2009. Even though the capacity is expected to stabilize after the first week of October, AIT would like to advise their customers to book early, especially for multiple container bookings.
The TSA member list of carriers includes the following carriers: APL, Ltd., China Shipping Container Lines, CMA-CGM, COSCO Container Lines, Ltd., Evergreen Line, Hanjin Shipping Co., Ltd., Hapag Lloyd AG, Hyundai Merchant Marine Co., Ltd., Kawasaki Kisen Kaisha, Ltd. (K Line), Mediterranean Shipping Co., Nippon Yusen Kaisha (N.Y.K. Line), Orient Overseas Container Line, Inc., Yangming Marine Transport Corp. and Zim Integrated Shipping Services
Source: http://www.tsacarriers.org/pr_070709.html
September 2009 was quite an active month for the AIT Ocean Systems Team. In the flurry of the ever-changing market conditions, especially the "GRIs" in the global trade lanes, the AIT pricing team was especially active during the month handling a record amount of ocean rate requests. We thank those customers, existing and new, for providing AIT with the opportunity to quote on your prospective business.
Our operations team remained "on their toes" in this tight market, working with steamship lines to secure equipment and space on vessels. As the leaves began to fall, the index price of ocean rates in the global trades saw an overall increase. Carriers continue to see full vessels on reduced capacity and there was a short "spike" in peak cargo from Asia in the last week of September.
October should experience a slight reduction in spike shipping volumes and it is still yet to be determined if the PSS (Peak Season Surcharges) will remain in effect, as many have been mitigated at press time. We only have three months of shipping before 2010 approaches and we're optimistic that space and equipment will become more readily available as the year winds down. Thanks to all our customers for an active ocean month.
Preview October 2009 AIT Ocean eNewsletter:
Giving thanks ... and recognition of a Northeastern U.S. seaport.
If you have any questions or comments regarding the Ocean eNewsletter,
please contact Kevin Krause from the AIT Ocean Department.
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