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News / Supply Chain Alerts

SHANGHAI / NINGBO LOCKDOWN UPDATE – 19 APRIL

The following is about our current air & ocean operations situation in the Shanghai & Ningbo area:

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NORMAL TRADE RELATIONS SUSPENDED FOR RUSSIA AND BELARUS

On April 8th, 2022, President Biden signed into law HR 7108 to remove the Permanent Normal Trade Relations (PNTR) status with Russia and Belarus. The removal of Permanent Normal Trade Relations status includes the withdrawal of “most favored nation” tariffs and will result in higher tariffs on the import of goods from Russia and Belarus.

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US – UK REACH AGREEMENT ON SECTION 232 STEEL AND ALUMINUM TARIFFS

On Tuesday March 22nd, the United Sates and the United Kingdom announced in a Joint Statement on Trade In Steel and Aluminum that the US would remove the section 232 tariffs and the UK would suspend related tariffs on US products.

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HOUSTON OFFICE/ WAREHOUSE RELOCATING

Dear colleagues & partners,

Please be advised Noatum Logistics is relocating both its office and warehouse locations, the first week of April.

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NEW LA/LONG BEACH CLEAN TRUCK FUND RATE

Dear Noatum Customer,

As of April 1st, 2022, the Ports of Los Angeles and Long Beach will begin collecting a new Clean Truck Fund (CTF) Rate, regarding the ports goal to achieve zero-emissions drayage trucking by 2035. A $10 fee per TEU (twenty-foot equivalent unit) and an additional fee of $20 per container that exceeds 20 feet on loaded import, export, domestic and international containers being hauled by drayage trucks as they cross terminals and rail cargo moving to or off nearby rail ramps via truck.

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CP CANADIAN NETWORK SHUTDOWN

On Thursday, the Teamsters Canada Rail Conference (TCRC)-Train & Engine provided CP with its 72-hour strike notice to be effective 00:01 ET on Sunday, March 20. CP had previously issued notice to the TCRC of its plan to lock out employees at 00:01 ET on March 20, if the union leadership and the company were unable to come to a negotiated settlement or agree to binding arbitration.

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TRUCKING RATES EXPECTED TO INCREASE NATIONALLY

On Tuesday, this week, the price of diesel fuel on the CME commodity exchange rose 21.98 cents per gallon, which is the largest single day increase since early June 2008. The US Department of Energy reports that the national average price of diesel at the pump jumped $0.75 cents in the first week of March, up a total of $1.71 from one year ago.

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RUSSIA-UKRAINE WAR: IMPACT ON GLOBAL LOGISTICS

As the conflict between Russia and Ukraine grows, the operational outlook for logistics operations with these countries has been severely altered.

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NEW U.S. SANCTIONS AND EXPORT CONTROLS AIM TO IMPOSE “DEVASTATING COSTS” ON RUSSIA

HUSCHBLACKWELL

On February 24, 2022, the United States imposed a combination of extensive and complex trade sanctions and export controls against Russia in response to is invasion of Ukraine.

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UNITED STATES AND JAPAN REACH AGREEMENT ON SECTION 232 STEEL TARIFFS

On Monday February 7, 2022 the United States Trade Representative (USTR) announced a 232 Tariff Agreement with Japan. The new agreement will allow Japan to ship up to 1.25 million tons of steel under a tariff rate quota (TRQ) without paying the 25% tariff. Any steel shipped in excess of the 1.25 million tons will be subject to the 25% tariff. The agreement which will take effect April 1st did not change the 10% tariff on aluminum.

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