|
 |
Ocean Fast Facts
Which Iberian peninsula port is the second-largest container port in Europe and handled nearly 3.6 million TEUs during 2007?
- Port of Algecira
- Port of Barcelona
- Port of Madrid
- Port of Torremolinos
Correct Answer: A. Algeciras
The port of Algeciras represents one of the largest direct and transshipment ports in the Mediterranean region and is the gateway between the Atlantic Ocean and Mediterranean Sea. Situated in Southern Spain, the port of Algeciras is a wayport for cargo moving between the Americas, the Mediterranean, Middle East and parts of Asia. For more information, visit the Algeciras port website.
Sources: http://en.wikipedia.org/wiki/Port_of_Algeciras
HTSUS
HTSUS, or Harmonized Tariff Schedule of the United States, is an organized listing of goods and their duty rates which is used by U.S. Customs as the basis for classifying imported products and therefore establishing the duty to be charged. This information also provides the U.S. Census with statistical information about imports and exports.
Not only does HTSUS provide classification of goods exiting the United States; HTSUS are sometimes used by ocean carriers for commodity based ocean rate pricing and can also help properly define cargo descriptions for insurance underwriters. Ultimately, aside from providing HTSUS for Customs clearance purposes, providing HTSUS to AIT when discussing new business will help ensure proper quoting of freight as well, possibly saving money up front. Contact your AIT representative if you have questions about HTSUS.
|
|
ASIA ALERT! The "ERC" and Capacity from Asia to the USA
During mid-December, the ocean carriers on the Trans Pacific import trade to the USA, represented primarily by the Transpacific Stabilization Agreement (TSA) member carriers, had announced a sort of general rate increase (GRI) in the form of an "Emergency Revenue Charge," or ERC. Throughout January, the "ERC" for the most part was passed along by the carriers at full market value. In February, the ERC has been "rolled into" the base ocean rates so ocean freight quotations received after February 1, 2010 would include the ERC unless otherwise stated in the quotation.
As is typical this time of year, the pre-Chinese New Year rush has started. Customers aim to ship their cargo out before factory closures during the holiday. Additionally, capacity on ships has been reduced and vessel space and equipment availability is especially critical. Ocean carriers are attempting to recover losses that took place in 2009 and as a result are focusing on loading higher profit cargo as a priority.
In some cases, carriers are offering special rates above the traditional NVOCC "bullet" or contracted rates as carriers seek to recover revenues during this peak time leading up to Chinese New Year. Customers should be advised that higher paying cargo may be loaded first with priority by the lines during this peak time. Lower paying cargo may be subject to a greater risk of being rolled or delayed as the backlog leading into the Chinese New Year holiday is causing overbooked situations. The carriers have not committed to additional capacity and the critical space situation may remain in effect through the second week of February.
The capacity crisis should ease in the weeks following Chinese New Year, which culminates on February 14th. More capacity should be available as March 1st approaches. AIT recommends if possible to book 3 to 4 weeks ahead for shipments ex Asia at this time.
Should you have any questions about the ERC or current the capacity situation from Asia to the USA, please contact your AIT representative.
China to Enforce the "Chinese Customs Advanced Manifest" (CCAM) Regulation
AIT would like to remind customers that the Chinese Customs Advance Manifest (CCAM) Regulation, first introduced in 2009, will soon be enforced by the Chinese government. Ocean carriers bringing freight to Chinese ports requires ocean carriers to ensure complete documentation is completed 2 business days prior to the operational cutoff at the port. Several ocean carriers are adjusting their cutoffs to comply with the regulation.
To ensure that your cargo is loaded, full shipping instructions are required by the close of business on the documentation cutoff date. The following pieces of information are required on shipping instructions (SI) in order to comply with both US Customs and Chinese Customs Advanced Manifest regulations:
- Voyage Number
- Payment terms
- Total Number of Packages
- Type of Package
- Cargo weight
- Shipper / Forwarder name and address
- Consignee / Notify name and address
- Container size and type
- Container number(s)
- Type of inner packaging
- Number of inner packages
- Cargo description
- Gross weight by commodity item
- Internal transaction number (ITN)
For more details on the regulation, please refer to the China Customs Web site at www.customs.gov.cn. The regulation is available only in Chinese.
General Rate Increases = Global Watch
Throughout January, ocean carriers had been announcing General Rate increases (GRIs) in several tradelanes. The key lanes impacted were:
- USA to Europe / Mediterranean
- USA to Asia
- USA to Latin America
To determine the impact of the GRI and the effective date on your specific business or if "no" GRI exists in your given tradelanes, contact your AIT representative.
February Congestion Alert!
At press time, certain port locations were reporting congestion:
- Colombia (Buenaventura)
- India (Kolkata)
- North African Ports (Tripoli / Algiers)
- Venezuela Ports (Puerto Cabello/Guanta)
- West Africa (Luanda / Angola)
- Nigeria (Tincan/Apapa)
Be advised that ocean carriers may temporarily enact "Port Congestion Surcharges" in times of peak volumes, so speak with your AIT representative in the event of any questions.
Pre Approval Required for Shipments to Venezuela
Effective February 1, 2010, AIT will require prior approval by AIT prior to acceptance of cargo. In addition to the already existing Customs penalties for correction in Venezuela, Venezuelan Customs has implemented an additional fine up to US$ 640.00 for each correction presented after vessel has finished operations at the Venezuelan port. This additional penalty is effective immediately. If shipping to Venezuela, the following information will be required by AIT for review and approval prior to acceptance of cargo.
- Shipper name and full address
- Consignee name and full address - this must be end user if destined for Venezuela
- Specific commodity description - for example, "Electric Equipment" or "Computer Equipment" would not be sufficient - specific information would be needed such as "HP color printers."
- Total number of pieces/weight
- Mode of transport being requested (air or ocean)
- Value of cargo - whether or not insurance is being requested, AIT would require the actual value of the cargo
New Document Requirements for Nigeria = Cargo Tracking Notices
In line with increased security, the country of Nigeria is now requiring Cargo Tracking Notices or CTNs for ocean shipments to Nigeria. These documents need to be completed prior to shipment acceptance for cargo destined to Nigeria. Be advised also that other African countries are implementing this system. For more information, contact your AIT Representative or visit www.africactn.com for more information.
February Ocean Export Update = Carriers Benefiting from "Full" Vessels from the USA
Carriers continue to report sailings southbound from the United States to Europe, Australia and Brazil at near or full capacity. There have been some cases where vessels outbound to Asia have approached overbooking situations. In order to help manage full vessels, carriers remain strict with recently enacted policies such as no documents no load policies, or "no docs, no load" policies. Exporters are reminded that they must ensure documents are submitted for proper AES filings prior to vessel cut-offs to ensure sailing on originally booked vessels.
AIT would like to remind export customers to 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 also 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 shipment needs, whether FCL, LCL or break-bulk.
A Friendly Reminder for ISF / 10+2 Compliance
The Phased Enforcement of the 10+2 Importer Security Filing (ISF) regulations began January 26th, 2010, and the record of your ISF transactions will now directly influence how CBP handles any future non-compliance. With penalties that include CBP holds on freight and liquidated damages fines of up to $10,000 per shipment, you can not afford to be non-compliant.
For more information, please contact your AIT representative or visit the US Customs ISF web page at:
http://www.cbp.gov/xp/cgov/trade/cargo_security/carriers/security_filing/.
The AIT Ocean Systems team is already off to the races with an active year. Many events, such as full ships and new regulations such as ISF/10+2, have already added to the excitement of the AIT Ocean Systems team in 2010. It seems that the shipping community is bouncing back already from a roller coaster ride that lasted the entire year of 2009. Whether it is working with the new Miami Gateway used for ocean consolidations to Brazil or working with the LCL Express import program from Asia, AIT will be active on many fronts. As always, the AIT Ocean Systems team would like to thank you for your support and we look forward to servicing your ocean needs.
Preview March 2010 AIT Ocean eNewsletter:
Spring Ocean Topics ... Contract Season?
If you have any questions or comments regarding the Ocean eNewsletter,
please contact Kevin Krause from the AIT Ocean Department.
|
|
Back to top