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July 2018 Newsletter

A monthly roundup of our Industry Updates, Blogs and Market Information.

China Tariff Exclusion Application Process 

As you are aware from our previous Industry Update, a 25% tariff imposed on goods imported from China went into affect on July 6, 2018. A list of these products can be found HERE.

The United States Trade Representative is providing an opportunity for the public to request exclusion of a particular product from the additional duties. On July 6th, the USTR released a statement outlining that process. An excerpt from that statement follows: 

The exclusion process has the following important dates and features:

  • The public will have 90 days to file a request for a product exclusion; the request period will end on October 9, 2018.
  • Following public posting of the filed request on Regulations.gov, the public will have 14 days to file responses to the request for product exclusion.  After the close of the 14 day response period, interested persons will have an additional 7 days to reply to any responses received in support of or opposition to the request.
  • Exclusions will be effective for one year upon the publication of the exclusion determination in the Federal Register, and will apply retroactively to July 6, 2018.

The complete statement from the USTR can be found HERE.

In addition, this article by Susan Kohn Ross at Mitchell Silbergerg & Knupp LLP provides additional information regarding the product exclusion process. 

As your logistics partner, we will continue to provide information related to Section 301 tariff matters. Should you require legal assistance in order to proceed with the application process, we would be happy to provide you with reference to experienced attorneys. Meanwhile, do not hesitate to contact our customer service team if you have questions regarding the status of your shipments. 

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USTR Proposes an Additional 10% Tariff on Chinese Made Products

On July 10, 2018 the Office of the United States Trade Representative announced they are proposing an additional 10 percent tariff on Chinese made products. The additional list of tariff numbers includes 6,031 8-digit tariff lines on approximately $200 billion in Chinese imports. 

The below is an excerpt from that bulletin:

Bulletin for July 10, 2018

USTR Releases List of Chinese Goods Set for $200 Billion in Proposed Tariffs

The U.S. Trade Representative is proposing an additional 10 percent tariff on 6,031 8-digit tariff lines -- about $200 billion worth of imports. Those who wish to testify for or against the inclusion of an item on the list must file by July 27, and written comments are due by August 17. Hearings will be held August 20-23. Senior government officials said a decision on tariffs will be made sometime after August 30.

A complete list of the products and their tariff codes along with the entire USTR bulletin can be found HERE.

We recognize this ongoing US and China tariff situation is fluid and has the potential to affect your supply chain processes. As your logistics partner, we will continue to offer our support. Meanwhile, do not hesitate to contact our customer service team if you have questions regarding the status of your shipments.  

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Market Trends and Developments we are Watching

  • Indicators point to early peak season shipments due to constricted US surface capacity: Industry experts have noted several reasons shippers may find the 2018 peak season challenging. Truckload spot rates are up and capacity is already stretched thin. Overall demand for drayage is up for both short and long-haul trucking in June. Things will likely become tighter in October. The general consensus seems to be that shippers may consider moving goods earlier to avoid bottlenecks during the run up to peak season.

 

  • Total Intermodal traffic grew 7.2% year-over-year and more shippers are choosing rail as their intermodal mode of choice. In the wake of ongoing trucking capacity issues, rail service is filling the service gap. BNSF reported a 6% increase in volume. Rail carriers are benefiting and have increased their rates accordingly.

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Tips and What Ifs - LCL or FCL Which is Right for Your Cargo?

If you are uncertain about the best way to ship your goods this article will help you better understand the pros and cons of LCL versus FCL shipments and help determine which option is best for you. 

There are advantages and disadvantages to each and in truth a majority of shippers may choose FCL or full container load simply because they aren’t well versed in the alternative. Sometimes less is more, especially when we are talking about shipments that are LCL or less than container load. 

Defining the Options

LCL shipments by definition are just what they sound like; shipments of smaller volume cargoes belonging to several different shippers which are then combined or grouped inside a single container. 

FCL shipments by comparison are used by shippers whose cargo volume is large enough to fill up all or most of the container. Unlike less than container load shipments, full containers are booked for the exclusive use of a single shipper. 

Check out the full article HERE. 

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