Supply Chain Reactions

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Featured Headlines:

Tariff Rate Quotas for EU Steel and Aluminum

US Opens Border to Vaccinated Travelers

FDA Hotline for ACE Goes Cold

Pass Through Storage Fees Incoming

Nationwide Port Update

Norfolk Southern Storage Fees & Frees

South Asia Fuel Shortage

Possible Delays During Holidays

UK and France Spar During Go Fish

Chinese New Year Prep

Grief Causes Port Strike in Greece

Tariff Rate Quotas for EU Steel and Aluminum

  • The US declared that new tariff rate quotas (TRQ) will be imposed on European steel and aluminum, across 54 products, effective January 1, 2022.
  • The limit will be 3.3 metric tons.
  • The good news is that products currently eligible for Section 232 exclusions will not count against these quotas. (Even better news is that these exclusions will be automatically renewed through 2023.)
  • All products entered under the quota will need to be certified as melted or poured in the EU.
  • Steel and aluminum derivative products will not be subject to either tariffs or quotas.

US Opens Border to Vaccinated Travelers

  • The Department of Homeland Security (DHS) announced plans to reopen the US border to non-citizen travelers who are fully vaccinated for COVID-19.
  • Starting November 8th, travelers with appropriate documentation will be permitted to enter the US via land ports of entry (POE) and ferry terminals.

FDA Hotline for ACE Goes Cold

  • Effective January 1, 2022, the Food and Drug Administration (FDA) will suspend its ACE phone support line due to low interest and call volume.

Pass Through Storage Fees Incoming

  • On Monday, the Boards of Harbor Commissioners for Los Angeles and Long Beach officially approved an “emergency” storage fee; although the fee went into effect November 1st, ports will not begin assessing the penalties until November 15th.
  • The fee from the port will be charged in increasing increments of $100 starting on the ninth day of dwell.
  • The methods and timelines for implementation vary by carrier; however, all carriers plan to pass on this fee.

Nationwide Port Update

  • Congestion and equipment shortages are still plaguing US ports on both coasts; wait time for carriers is also increasing.
  • Carriers have been increasing their accessorial charges nationwide, especially on the West Coast.
  • Want more supply chain news? Check out Supply Chain Reactions for a condensed update for American shippers!

Norfolk Southern Storage Fees & Frees

  • Norfolk Southern revealed plans to reduce free time for import containers and increase storage fees.

South Asia Fuel Shortage

  • In addition to ongoing power supply issues, China is experiencing a diesel fuel shortage.
  • Truckers are limited on the amount of fuel that they can get at one time, which may impact delivery of cargo.

Possible Delays During Holidays

  • India celebrated Diwali on November 4th (Thursday); further celebrations may occur through the weekend.
  • Singapore and Malaysia will celebrate Deepavali on November 5th (Friday).

UK and France Spar During Go Fish

  • France threatened to take a series of retaliatory measures against the UK on Tuesday unless more fishing licenses are granted for French boats to operate in waters near the English coastline.
  • At the eleventh hour, the French president postponed the sanctions in the wake of ongoing and constructive dialogue with officials from the EU Commission, the UK and the Channel Islands.

Chinese New Year Prep

  • Transpacific capacity is expected to tighten during December as US importers book cargo ahead of the Chinese New Year closings.
  • Shapiro advises that customers provide their forecasts to help with planning and to avoid booking woes.

Grief Causes Port Strike in Greece

  • Cosco workers began striking last week following a fatal accident at Piraeus port in Greece.
  • Employees blame harsh working conditions for the accident and have stated their demands for resuming work.
  • As of October 31st, one of two unions at the port remained on strike blockading Piers II and III.