Featured Headlines:
West Coast Shippers Hoping to be “Railroaded”
Do You Know the Kinks in Your Supply Chain Links?
An EPA Presence on ‘Absence of Ingredient’ Claims
Baltimore Trucking Con-SEA-quences
The Port of Savannah is Growing Up
Baltimore Strong
- Our hearts ache for the six lost construction workers and their families. As horrifying and emotional as it was for all of us to watch (and watch) the footage, we cannot even imagine that experience for those families, close friends, and co-workers.
- The Baltimore maritime community is gritty, strong, and smart. We have 15,000 workers at the port, a great group of government teams including CBP, passionate dray providers and truckers, hard-nosed warehouse providers, rock solid steamship and port staff and leadership, empathetic shippers who understand the word “partnership,” and some not-so-shabby brokers and forwarders (we hope!).
- And now, despite our sadness, Baltimore welcomes the brave salvage workers, divers, Coast Guard crews, US Corps of Engineers, and countless others involved with the clean-up, establishment of a safe channel, and removal of the Dali.
- Next year, Shapiro will celebrate our 110th year in Baltimore, and we are very proud to recognize Samuel Shapiro’s pivotal role, working with Helen Bentley, in enhancing “the port that built the city.” Baltimore will be back and better than ever!
West Coast Shippers Hoping to be “Railroaded”
- Is it finally “The Big One” or just the distant sound of thunder we hear in Long Beach, folks? Well, it isn’t a landslide, so it must be TPM speakers still grappling for the microphone?! No, it’s the sound cranes, port equipment, trucks, and trains moving a mountain of freight.
- The first two months of 2024 witnessed a remarkable surge in US imports from Asia through the Los Angeles-Long Beach ports, marking nearly a 40% year-over-year (Y-o-Y) increase in the first months of 2024, totaling 1.4m TEUs. This puts ’24 in a tight race with ’22, and we ALL know ’22 was using performing enhancing drugs. That’s no secret!
- One thing we want to hear more of in SoCal is “choo choo” and “chugga chugga chugga.” Terminal operators in LA and LB find themselves grappling with a backlog of rail containers as a result of the import spike, prompting calls for additional railcars from the shipping public (especially those that start with an ‘A’ and a ‘W’).
- In response to the challenge, some railroads, including BNSF and Union Pacific, have stepped up by deploying more intermodal cars and adjusting their operations to expedite the clearance of the backlog and reduce container dwell times.
- However, the situation has been further complicated by wildfires in Texas and excessive flooding on the West Coast. And let’s just say it, people, the railroads “ain’t never” been very good at intermodal rail from the City of Angels!
- To complicate compounding complications confoundingly, the East Coast ILA contract negotiations look as if they may sour, which could lead to even higher volumes of cargo landing on the West Coast for much of Q2 and Q3 (and beyond?) in 2024.
- Feel like you might be getting “Railroaded?” Reach out to Shapiro’s Freight Experts to chat about your services today!
When Two Become ONE
- ONE and Yang Ming are charting, or should we say chartering, a new course in the transpacific after Hapag-Lloyd waves goodbye to THE Alliance in early 2025. The updates aim to keep the shipping community’s compass pointing towards clarity and confidence amid shifting trade currents.
- As the departure of Hapag-Lloyd looms on the horizon, these carriers are stepping in as lighthouse beacons, guiding shippers through the foggy negotiations of annual contracts.
- ONE is not just adjusting its sails, but also adding new ships to its convoy, with 16 transpacific loops. This expansion includes a partnership with Wan Hai, making the network busier than a school of fish during mating migration season.
- As for the Asia-Europe service updates, the ships are still at anchor (metaphorically speaking, of course). The carriers have yet to hoist the sail on any announcements, keeping shippers docked in anticipation.
- In addition, ONE has announced a plan to grow its operated fleet to 3 million TEU by 2030, with an annualized growth of 10%. The expansion is expected to cost ONE approximately $25 billion.
- Let us all remember that Hapag is pretty small from Asia to US; ONE told us that just after mentioning that Maersk is overrated, snobby, and conceited (and they don’t even care that Hapag is leaving them or anything). It was an odd chat, certainly.
Do You Know the Kinks in Your Supply Chain Links?
- For many years, US Customs Trade Partnership Against Terrorism (CTPAT) has been asking the trade community the question: do you know your supply chain?
- Following the 2024 Trade Facilitation and Cargo Security Summit, US Customs and Border Protection (CBP) officials released a document—entitled “Do You Know Your Supply Chain?” (shocking, huh?)—urging importers to review their supply chains in an attempt to drill down on information, such as:
- What does each segment of the supply chain have in place?
- Know your customer and your consignee’s name (first and last).
- Study your logistics! Revisit and reexamine your entire supply chain using the 5-Step Risk Assessment.
- Click here to review the document in detail
- In addition, CBP also released CSMS # 60011750 – Announcement of Vague Merchandise Description Cargo Messages to advise importers that their cargo description should show a detailed representation of the goods.
- Here are some examples of bad descriptions:
- “Stuff” or “Gifts” are not good…in fact they are terrible!
- “Machine parts” is too vague and is almost a sure sign that your shipment will be flagged by CBP, leading to costly delays.
- Also, machine parts for what? Pill presses to make illegal drugs? (These are serious questions, folks!)
- “FAK,” or Freight All Kinds, has been a prohibited description for many years and will be rejected by CBP.
- Finally, Customs reminded importers the following regarding Entry Type 86 for e-commerce shipments:
- Custom Brokers have the right to request an invoice for Type 86 entries.
- Watch for trademarks—especially Intellectual Property Rights (IPR)—to be sure you have the authorization to import.
- If you are not compliant, you may get suspended from CTPAT.
- For more information about CTPAT, visit our Shipping Resources page.
An EPA Presence on ‘Absence of Ingredient’ Claims
- In case you hadn’t heard, one of the Environmental Protection Agency’s (EPA) responsibilities is to take aim at providing guidance on “Absence of Ingredient” claims associated with Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) regulated products.
- In February, the EPA issued guidance—focusing mostly on pesticide products—to clarify how these claims on the labeling can be misleading and also violates the FIFRA misbranding requirements.
- If you are interested in reading more about this “funky topic,” check out the EPA Guidance on “Absence of an Ingredient” Claims Associated with Federal Insecticide, Fungicide, and Rodenticide Act-Regulated Products.
Baltimore Port Re-Opening!
- According to the US Corps of Engineers, The Baltimore Port will reopen with limited access (280’ x 35’ deep) by the end of April. This partial re-opening will support one-way traffic in and out of the port for barge container service and some roll-on-roll-off vessels. This is incredible, readers!
- Absent any unforeseen circumstances, the port will completely reopen to shipping by the end of May, with a permanent 700’ wide x 50’ deep federal navigation channel.
- While MUCH has been made of the $2B price tag and who will be paying that, it is far too early to offer a meaningful update on when the bridge itself will be re-built. It is, however, already safe to say that most Americans will learn what “general average” and “force majeure” mean, and knowing most Americans we’ll find a way to blame whichever political party we don’t like. Shameful, folks! Let’s pull together, already!
- Speaking of shameful, ONE ocean carriers (just one) chose to add a diversion fee of $300 per container for cargo off-loaded, at great shipper expense for domestic freight, at Norfolk or New York. Seriously? If any local staff for that carrier reads this, PLEASE send a note to your upper management in a country that was recently visited with its own tragedy. Yes, seriously.
- We also noted with consternation that demurrage and per diem rules were not made flexible and fairer for those shippers diverted to other East Coast ports. So thoughtful and warm-hearted! Just wow.
- With the whining over now, we are particularly encouraged by the Baltimore re-opening news for roll-on-roll-off (ro-ro) cargo, which cannot as easily find a new home as containerized freight.
- Baltimore is the leading US ro-ro port and handled 850,00 shipments of cars and light trucks and 400,000 other vehicles and machines (largely agricultural) in 2023!
- The re-opening update is also a huge relief for the owners of the eight commercial vessels marooned in the harbor and for the Navy, which has three vessels stuck.
- For containerized cargo, Baltimore moved 1.1M TEUs last year. While this is not shabby, it represents just 10% of all containers shipped to the US Northeast, and 3% from Houston to Boston. For containers, Baltimore is ONE THIRD of Norfolk’s size and ONE EIGHTH of massive NY/NJ’s volume.
- Lastly, we just want to say how incredibly impressed we are with the salvage and debris removal efforts… to partially re-open by the end of this month is a miracle indeed!
Vietnam Gets Green
- It seems the U.S. and Vietnam are on a joint mission to redefine “green energy.” By channeling a cool half-billion dollars into Vietnam, they’re proving that the best kind of green grows in a bank—and powers a country.
- The U.S. has signed a lucrative deal to fertilize green exports to Vietnam, aiming to reduce the trade deficit and nurture a manufacturing alternative to China.
- U.S. companies eyeing exports in renewable energy, climate solutions, and infrastructure can now tap into loans and support from the Ex-Im Bank, as announced by the U.S. Embassy in Hanoi.
- The financing initiative plans to partner with the Vietnam Development Bank, identifying projects that will catalyze Vietnam’s shift towards a greener future.
- With Vietnam holding the third-largest trade surplus with the U.S., the focus shifts from political trade balances to fostering mutual economic growth opportunities, particularly in green tech and renewable energy sectors.
Baltimore Trucking Con-SEA-quences
- The indefinite closure of the Port of Baltimore, coupled with the loss of the Francis Scott Key Bridge, is disrupting East Coast and mid-Atlantic distribution networks, leading to increased trucking and warehousing costs as cargo is re-routed to alternate ports.
- The port’s closure highlights vulnerabilities in drayage and flatbed capacity, with potential delays and higher costs for deliveries. Unfortunately, with Spring thaws come big spikes out of Baltimore for agricultural equipment, which often moves on flatbeds… demand had just spiked over 50% the week before the bridge tragedy.
- Importers and exporters face immediate challenges in maintaining freight movement, particularly for hazardous materials, as the closure forces a rethink of inland distribution strategies.
- For example, Mediterranean Shipping Co. (MSC) anticipates that it will take several months before it resumes service calls to Baltimore, underscoring the closure’s extended impact.
- Alternative East Coast ports—from New York-New Jersey to Jacksonville, Florida—have the capacity to absorb diverted cargo, but the availability of trucks, drivers, and chassis for the onward journey poses a significant logistical hurdle.
- Some chassis providers have expressed confidence in adjusting to cargo diversions with current equipment pools, despite concerns that longer drayage hauls may tie up chassis for extended periods.
- Regulatory relief for truckers affected by the closures is being pursued by several entities and includes extending driver hours and exemptions from electronic logging devices.
- The closure spurs a need for emergency waivers to mitigate financial hardships for truckers, which suggests significant impacts on local economies if regulatory and financial support is not provided.
The Port of Savannah is Growing Up
- The Port of Savannah has been making waves with its recent developments, and it’s time to take notice. Amidst concerns surrounding the upcoming ILA contract negotiations, the Georgia Port Authority (GPA) has boldly approved key projects at Ocean Terminal.
- Once a wee port handling only 300,000 TEUs, the recently announced expansion is poised to transform it into a major player, capable of handling over 1.5 million TEU by 2027.
- That’s not all, the Port has also been investing in its future elsewhere with new ship-to-shore cranes, rejuvenating the wharf, and streamlining truck traffic with the aim to ensure top-notch service levels while pushing capacity to new levels.
