Chris Dupin, American Shipper, Tuesday, May 07, 2013

Dockworkers in Hong Kong have decided to end a 40-day strike after securing a promise of a 9.8 percent wage increase and improved working conditions.

The Union of Hong Kong Dockers (UHKD) said it had received on Monday a written confirmation jointly signed by the four contractors at Hong Kong International Terminal - Everbest, Comcheung, Lem Wing and Pui Kee - via the Hong Kong Labor Department that confirms the 9.8 percent increase in the basic wage for all their employees at different works in Kwai Chung Container Terminals, effective for one year from May 1.

The U.S. Federal Aviation Administration suspended all employee furloughs and said air traffic control facilities returned to regular staffing levels by Sunday evening after Congress passed legislation Friday giving the agency flexibility to meet a mandatory budget cut in the face of public frustration with airport delays and flight cancellations.

Immediately upon providing relief for the airline industry, Democrats and Republicans took turns accusing each other for causing nearly a week of disruption to flight schedules.

The $85 billion in automatic budgets cuts through the end of the fiscal year were never intended to be implemented because they are so draconian, but Republican lawmakers and the White House could not agree on an alternative package of savings and revenue increases by the March 1 deadline. The FAA's portion of the austerity measure is $637 million, which the Obama administration said could not solely be met by steps such as a hiring freeze and limiting travel expenses. On April 21, the FAA began implementing furloughs for its 15,000 air traffic controllers and spacing out aircraft arrivals and departures to maintain safety with fewer staff in control towers and radar stations.

The legislation gives the FAA leeway to move money from a non-essential grant program for airport improvements to cover personnel costs for the air traffic controllers, eliminating the need to put them on unpaid leave one day per pay period. Congress recently passed similar legislation to restore Agriculture Department meat inspectors to full-time work.

Eric Kulisch, American Shipper

Shippers should expect delays receiving air cargo moving through major airports in Atlanta, Chicago, Los Angeles and New York after the U.S. Department of Transportation and its Federal Aviation Administration on Sunday began to furlough air traffic controllers as promised to make good on forced budget cuts that hit the entire government in March.

Critics said the Obama administration is using the reductions in air traffic control hours to put political pressure on Republicans for not accepting tax increases as part of a long-term debt reduction plan when other expenses with less immediate effect on the traveling public were available for elimination. The airline industry on Friday sued the federal government to stop the furloughs.

International Longshoremen?s Association members overwhelmingly ratified a six-year contract for East and Gulf coast dockworkers in a coastwide referendum Tuesday.

The ILA's unofficial tally showed the contract won an 88 percent "yes" vote, with 7,192 in favor, 932 opposed, and 33 voided ballots. The union said all locals approved the contract, the first time in modern ILA history that has happened.

Wage scale delegates for the International Longshoremen's Association on Tuesdayafternoon approved, in principle,the proposedaspects of amaster contract for its dockworkers on the U.S. East and Gulf coasts.

The International Longshoremen's Association (ILA) and employers in the Port of New York and New Jersey on Thursday reached a tentative agreement on local contract issues.

Jim McNamara, an ILA spokesman, said the agreement with employers represented by the New York Shipping Association (NYSA) is "subject to some tweaking," but will be presented to local union officials next week when its 200-plus wage scale delegates meet to vote on a tentative master contract covering 14 ports on the East and Gulf coasts.

The International Longshoremen?s Association (ILA) and U.S. Maritime Alliance (USMX) resumed contact negotiations on Tuesday, but sources say efforts to reform work rules and improve productivity in the Port of New York and New Jersey are likely to overhang national talks.

Originally scheduled to expire at the end of last September, the current contract has been extended twice: first in late September for 90 days, then in late December to February 6, next Wednesday. Talks were scheduled to continue on Wednesday and Thursday. Carriers are cautioning shippers about the potential for a work stoppage.

Negotiations on a new contract between the International Longshoremen's Association and employers represented by the U.S. Maritime Alliance (USMX) broke off abruptly Tuesday afternoon.

On November 13, 2012, APL met with the OCU to resume contract negotiations. Negotiations continued throughout the week, and again on Monday, November 19. The session ended Monday without any agreement, the OCU declared an end to contract negotiations, and there are indications that an OCU-initiated work stoppage may occur.

All facilities must register by Dec. 31.

The International Longshoremen's Association and U.S. Maritime Alliance have agreed to extend their collective bargaining agreement, which was due to expire at the end of this month by 90 days, until Dec. 29.

For further information on this issue, please contact your Western Overseas representative.

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The recent discovery of radioactive materials in some imported consumer goods that have made it to store shelves is prompting U.S. Customs and Border Protection to step up its related scanning activities, resulting in processing delays for dozens of shipments from China, India and other countries. Importers and exporters should act now to address this new and significant business risk. Western Overseas is available to help our customers avoid or resolve such problems.

In a recent press release, the U.S. Trade Representative confirmed that the provisions of the U.S.-Korea Free Trade Agreement will take effect on Thursday March 15, 2012.

Maersk Line, the world?s largest ocean liner operator, announced in a letter to its customers this month that rates from the United States to the Far East will increase March 1, 2012.

The South China Morning Post has reported that Hong Kong and mainland China shippers are currently facing difficulty getting their products shipped ahead of the Lunar New Year holiday.

Cuts in container shipping services on both the Transpacific and Asia-Europe routes have been exacerbated by a pre-Lunar New Year cargo rush, as mainland Chinese factories complete export orders ahead of the holiday shutdown.

Please be advised that government and business establishments located in mainland China will be closed for Lunar New Year holidays from January 22-28 inclusive.

Included in this legislation was an increase in the Merchandise Processing Fee (MPF), a U.S. Customs fee imposed upon formal entries. The MPF was increased from 0.21% (0.0021) to 0.3464% (o.003464). The minimum MPF processing amount ($25.00) and the maximum MPF processing amount ($485.00) were not changed.

Ocean freight carriers servicing the tradelanes from Asia & Indian Sub-Continent to the USA have announced that they will be implementing a Peak Season Surcharge (PSS) effective August 15, 2011 at the following levels:

• USD 320.00 per 20 container
• USD 400.00 per 40 container
• USD 450.00 per 40hc container
• USD 510.00 per 45 container
• USD 8.00 WM or minimum LCL shipment

Terminal operators in Los Angeles-Long Beach will increase the PierPass Traffic Mitigation Fee charged during daytime hours from to $60.00 USD per TEU, beginning July 4, 2011. This is a $10.00 increase over the current fee.

The Food and Drug Administrations interim final rule that will amend its regulations to lower the threshold for ordering administrative detention of food for human or animal consumption is effective July 3, 2011.

It has come to our attention that the Government of Argentina has restricted approximately six-hundred (600) products from entering into the commerce of Argentina.

We would urge you and your customers in Argentina to review the import regulations and exchange documents with commodity descriptions and all pertinent information prior to shipping any cargo to Argentina by ocean or air freight.

Airlines and forwarders are furious at the US Transportation Security Agency (TSA) over its latest security diktat and its short deadline

Under the amendment, regulated agents have to provide a statement saying that shipments tendered on a master AWB were received from persons having an established account with a physical shipping address and a payment, invoice or credit history of at least one year. Failure to provide such a statement or shipments tendered by unregulated agents will result in additional security measures.

On March 22, 2011, FDA issued Import Alert 99-33, "Detention Without Physical Examination of Products from Japan due to Radionuclide Contamination".

The alert can be found at the following link: http://www.accessdata.fda.gov/cms_ia/importalert_621.html

Import Alert 99-33 indicates detention without physical examination (DWPE) for the specific food products of concern listed in the Import Alert that have originated from the prefectures of Fukushima, Gunma, Ibaraki, and Tochigi in Japan.

Due to the situation in Japan, the FDA will be asking for documents on ALL Japanese food products and possibly sampling or examining many more. We may be asking for information that we have not asked for previously, such as the region where the product originated and the date of shipment from that region.

Due to the situation in Japan, the FDA will be asking for documents on ALL Japanese food products and possibly sampling or examining many more. We may be asking for information that we have not asked for previously, such as the region where the product originated and the date of shipment from that region.

Horizon Lines agreed to plead guilty and will pay $45 million in fines for antitrust violations in the Puerto Rico trade. The carrier also announced management changes, including the retirement of longtime CEO Charles G. Raymond, and said it is asking lenders to waive a default judgment arising from the guilty plea.

Please be advised that government and business establishments located in mainland China will be closed for Lunar New Year holidays from February 2nd to 8th inclusive.

Western Overseas Corporation would like to highlight an airline practice which may prove to be beneficial for your large airfreight shipments destined to the USA.

European Union Advance Cargo Declaration Regime The European Union (EU) Advance Cargo Declaration Regime will come into force on January 1, 2011.

The new manifest transmission regulations will affect export cargoes to Europe, and any cargoes transshipping and transiting in Europe i.e. FROB freight remaining on board. The primary purpose of the regime is to enhance the security of EU member states through monitoring the movement of goods.

Most steamship lines servicing the United States have announced that they will no longer provide chassis for either pick up or delivery of containers in several regions of the country due to the high cost of maintaining their chassis fleets. Effective dates and locations vary by carrier.

On June 7th, 2010, U.S. Customs issued CSMS@ 10-000141 advising the import community that effective June 30, 2010, Pay.govs ACH settlement provider will be implementing a new payment processing system. There will be a new routing number for Pay.gov transactions which may affect Western Overseas clients who use the debit block services provided by their financial institutions.

Ocean freight carriers servicing the trade lanes from Asia & Indian Sub-Continent to Canada & USA have announced their intentions to implement a Peak Season Surcharge (PSS) effective June 15, 2010 at the following levels:

usd 320.00 per 20 container
usd 400.00 per 40 container
usd 450.00 per 40hc container
usd 505.00 per 45 container

Ports and terminal facilities in Asia are experiencing heavy backlogs with North American bound containers because of an ongoing supply-and-demand situation.

The International Trade Administration announced that it will initiate Anti-Dumping and Countervailing Duty investigations of steel fasteners from China and Taiwan.

The Generalized System of Preferences (GSP) program is due to expire on December 31, 2009 for most eligible countries.

If Congress does not enact an extension of the law, all goods previously covered by GSP will require payment of duties. If and when the law is passed, it must be made retroactive in order to obtain a refund of any duties paid in the period after the law lapses.

Section 203 of the SAFE Port Act of 2006 mandated U.S. Customs and Border Protection (CBP) develop a regulation which required additional data elements be provided to the agency, as advanced information, prior to vessel lading.

U.S. Customs and Border Protection is scheduled to implement two new status notifications to help the trade in matching Importer Security Filing bills of lading with ocean manifest filings. The new notifications will be sent to Automated Manifest System (AMS) filers beginning May 27, 2009 at approximately 9:00 a.m. EDT.

On March 31, 2009, the U.S. Department of Agriculture (USDA), Animal and Plant Health Inspection Service (APHIS) issued an ?Importer/Broker? letter to clarify the import permit process for USDA Food Safety Inspection Service (FSIS)-exempted food products containing small amounts (less than two percent) of meat and/or poultry ingredients. This letter can be found on the following APHIS webpage. ( Animal and Animal Product Import )

As the C-TPAT program continues to evolve and members are required to comply with additional minimum security criteria, CBP must also look to provide additional, meaningful and tangible benefits to certified C-TPAT partners in exchange for the added security commitments demonstrated by the C-TPAT member.

The Port of Long Beach will begin collecting a Clean Trucks Fee on February 18, 2009 to accelerate the replacement of thousands of polluting cargo trucks. At the same time the Port will kick off an electronic gate access system that will enable the fee collection and improve security at shipping terminals.

There is currently a court action being litigated in the U.S. Court of International Trade (CIT) that is challenging U.S. Customs position on the tariff classification of certain engineered hardwood flooring. These flooring products are narrow strips that have a protective coating and are ready for installation as flooring at the time of importation. Customs currently classifies these products as plywood at a duty rate of 8.0%, based upon a court decision issued about three years ago by the U.S. Court of Appeals for the Federal Circuit (CAFC).

The Committee for the Implementation of Textile Agreements has issued a directive to U.S. Customs and Border Protection canceling the Electronic Visa Information System requirements for textiles and textile products produced or manufactured in China and exported on and after Jan. 1, 2009. CITA is taking this action in connection with the Dec. 31 expiration of the safeguard quotas on various textiles and apparel from China.

The Long Beach Board of Harbor Commissioners voted Monday, December 1, to push back for at least six months the collection of a cargo-container fee intended to collect funds for road, rail and bridge improvements in the harbor area.

The U.S. Department of Homeland Security announced today new information requirements on maritime cargo destined for the United States. The Importer Security Filing and Additional Carrier Requirements interim final rule will require maritime cargo carriers and importers to submit additional data to U.S. Customs and Border Protection (CBP) before vessels are permitted entry into the country.