Please be advised that several carriers have announced significant increases to their FAK levels from North Europe to the USA. These changes will affect current tariff rates. Impact on contract rates is not clear, and would likely not be as severe, but the market will definitely support some increases.
News / Regulatory Updates
On Wednesday, March 10, 2021, the United States Trade Representative Office (USTR) announced in Federal Register Notice 86 No 45 FR 13785 that the Section 301 exclusions for Covid-19 related medical supplies, originally scheduled to expire on March 31, 2021, would be extended through September 30, 2021.
In joint statements on March 4 and March 5, 2021, the United States, United Kingdom, and European Union all agreed to a four-month mutual suspension of tariffs related to the World Trade Organization (WTO) aircraft dispute. The suspension will cover all tariffs both on aircraft as well as non-aircraft products.
On Monday, March 1, 2021, the United States Trade Representative (USTR) office released President Biden’s 2021 Trade Agenda and 2020 Annual Report. According to the USTR Press Release, “The President’s agenda will create millions of good-paying jobs and support America’s working families.”
The Generalized System of Preferences Program (GSP) expired on December 31, 2020, as Congress failed to reach a deal before the end of the year that would have extended the GSP program. There were bills in both the Senate and House which were put forward to extend GSP for sixteen months and six months respectively.
U.S. Customs and Border Protection (CBP) released on their website the Xinjiang Uyghur Autonomous Region WRO Frequently Asked Questions (FAQ). This is to help answer the many questions asked since the issuance of the Withhold Release Order (WRO) for cotton, cotton products, tomatoes and tomato products produced in the Xinjiang Uygur Autonomous Region (XUAR).
The sustained surge of U.S. containerized imports from Asia, which began eight months ago, continues unabated and is anticipated to persist well into the spring, being further exacerbated by the pre-Lunar New Year cargo rush experienced at origin ports in Asia in recent weeks.
Noatum Logistics has received notifications from two of our core ocean carriers, one within THE Alliance and the other a partner in the Ocean Alliance, announcing 28 voided sailings between February 5 and February 26. A full table of all blank sailings announced as of this week is provided at the bottom of the alert.
On Friday, January 22, 2021, The United States Trade Representative (USTR) office issued in Federal Register Notice 86 No 13 FR 6732 the notice of determination related to the Section 301 investigation into Vietnam’s Currency Valuation practices.
On Friday, January 22, 2021, U.S. Customs and Border Protection issued Cargo System Messaging Service (CSMS) # 45799085 delaying the Aluminum Import License requirement until March 29, 2021. This delay announcement is in response to the “Regulatory Freeze” issued by the White House Chief of Staff on January 20, 2021.