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March 2018 Newsletter

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

Update about THE One Alliance

The Ocean Network Express (ONE) will shift to its brand new service network on 1 April, with only minor changes to the existing service offerings of the individual 3J services of K Line, MOL and NYK. The transition to the ONE network is expected to be smooth,with customers expected to shift over to the new network with minimal disruptions during the switchover.  The following is a summary of THE One Alliance transpacific service.

  • THE Alliance will continue to offer 11 services on the Far East - North America West Coast route and five loops on the Far East - North America East Coast. 
  • The Southeast Asia-USWC 'PS3' service is extended to Nhava Sheva, Pipavav and Colombo, encompassing the existing West India-China service operated by NYK, Hapag-Lloyd, Yang Ming and X-Press Feeders (WIN).
  • Several of THE Alliance’s transpacific loops are expected to be upgraded, mainly with vessels cascaded from the Asia-Europe route.
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Industry Update - Truck Capacity, Chassis Equipment and Fees

In recent weeks, we have shared information via our Smart Source blog and Industry Updates regarding the new ELD Mandate and other issues regarding trucking capacity going into 2018. It is our goal to continually update you regarding these and any other factors that may impact the movement of your goods. 

Please note there remains an ongoing shortage of available truck drivers as well as chassis equipment across the US; particularly for longer distance truck moves, over 150 miles. This is most apparent in several major hubs, including Los Angeles, Seattle, Atlanta and Chicago. In addition, rail yard space is limited in several markets. 

Unfortunately, you may experience an increase in the cost of trucking and other fees, including demurrage, detention and storage charges through the remainder of the first quarter of this year and potentially into next quarter, until this situation improves. The full update can be found HERE.

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The History and Evolution of the Shipping Container - Part 2

The Present-Day Ocean Container Click HERE to read the first in our 3-part series

How would you answer if I asked you to name five innovations that significantly affected everyday life in the 20th century?

Perhaps you might list the smart phone or personal computer, the internet, automobiles and airplanes, antibiotics, or the television. Undoubtedly, no two people would list the same things. There are too many possibilities. However, there is one common thread among nearly all consumer innovations of the past 50 years - at one time, they traveled somewhere across the globe in a standardized ocean shipping container.History and Evolution of the Shipping Container Part 2

The Container Today

In Part 1 of this series, we focused on the history of these colorful boxes and how they became the container of today - a powerful force in our global economy. Because of the container, consumer goods are delivered to people across the globe more economically than ever. Click HERE to read the full article

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Market Trends we're Watching

  • Unfair Demurrage and Detention charges – Formal investigation to begin by FMC. In our February Newsletter we discussed a hearing held in mid-January by the FMC regarding a petition brought by the Coalition for Fair Port Practices. On March 5th the FMC voted unanimously to launch an investigation into the liner carrier industry's practice of assessing detention, demurrage and per diem charges. The ruling directs Commissioner Rebecca Dye to report interim findings and recommendations no later than Sept. 2, 2018, with a final report due no later than Dec. 2, 2018. The five key issues to be evaluated are: https://www.americanshipper.com/main/news/news-flash-fmc-initiates-detention-demurrage-inves-70756.aspx?mod=djemlogistics&utm_content=buffer20291&utm_medium=social&utm_source=linkedin.com&utm_campaign=buffer
        
    • Whether the alignment of commercial, contractual, and cargo interests enhances or aggravates the ability of cargo to move efficiently through U.S. ports;
    • When has the carrier or MTO tendered cargo to the shipper and consignee;
    • What are the billing practices for invoicing demurrage or detention;
    • What are the practices with respect to delays caused by various outside or intervening events;
    • What are the practices for resolution of demurrage and detention disputes between carriers and shipper

  • Higher bunker fuel prices driving up fuel surcharges - The Annual  TPM Conference happens March 4-7 in Long Beach, CA and amid the usual negotiations between cargo owners (BCOs) and carriers there may be additional talks regarding rising bunker fuel prices. Hapag-Lloyd announced January 25th they would begin monthly updates of their Bunker Charge and Low Sulfur Fuel Charge. This may be an indicator that other carriers will follow as carriers continue to adjust their fees to reflect the additional costs associated with low-sulfur fuel. We will continue to monitor these developments.   https://www.joc.com/maritime-news/bunker-fuel-emerging-another-shipper-cost-factor_20180206.html

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Tips and What Ifs - How to use the ECCN to Determine if your Product needs an Export License

If you have ever been asked to supply your commodity’s ECCN, the requester is looking for the Export Classification Control Number. ECCNs are used for export control purposes and help identify if an export license may be required. This is a five digit number, which can be found on the Commerce Control List (CCL).

Before diving into the CCL, you must first determine whether or not your product falls into any of the ten CCL categories. These CCL categories can be found on the Bureau of Industry and Security’s (BIS) website and are also shown in our blog. Remember, if your product does fall into any of these categories or you think it potentially could, then you will need to continue the ECCN classification process.

 

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