Customs & Logistics News
Recent Editions
U.S.
September 15, 2016
FDA ACE Regulations said to be Burdensome by Trade
The Food & Drug Administration (FDA) has allowed for comments to be provided on their proposed rule to codify new requirements on entries filed through U.S. Customs Automated Commercial Environment (ACE). Comments include (1) Processing times increasing by 50% under ACE; (2) Staffing increases of 40% required to timely process shipments; (3) New data elements being unnecessary or duplicative; (4) Concerns that current optional ACE elements will become mandatory, making matters worse. Various members of the trade comments with detail: https://www.regulations.gov/docket?dct=FR+PR+N+O+SR&rpp=10&po=0&D=FDA-2016-N-1487
Hanjin Managing Bankruptcy
Currently there are a half-million containers stranded worldwide due to the Hanjin bankruptcy. To deal with this crisis, Hanjin is setting up rapid response teams which will remain open throughout the Korean Thanksgiving this week. Hanjin is currently applying for bankruptcy protection in all necessary regions so vessels can arrive without risk of creditors seizing the cargo. Additional details are available at: http://www.joc.com/maritime-news/container-lines/hanjin-shipping/hanjin-vows-resolve-ongoing-crisis_20160914.html
FDA Survey Shows Lack of Readiness for FSVP Requirements
A recent Food & Drug Administration (FDA) survey conducted at three regional workshops in the U.S. found less than half of the importers surveyed are prepared to implement the Foreign Supplier Verification Program (FSVP) requirements for the food they import. The top challenges to implementation were cited as understanding requirements, understanding FDA expectations, burden of compliance, implementation concerns and market complexity. The full FDA Report: http://www.fda.gov/downloads/Food/GuidanceRegulation/FSMA/UCM518897.pdf
Hanjin Bankruptcy Effect on Drayage Industry
Finding a place to deliver empty Hanjin containers is adding extra time and costs to drayage moves. Many terminals and businesses will not accept empties because it is not known who will pay storage fees. This is adding more legs to the drayage move as drivers struggle to find a place to return the empty and still need to return the chassis to the terminals. Some chassis owners have agreed to “stop the clock” on leasing charges as drivers search for a place to return empties but this is not the case nationwide. Additional details are available at: http://www.joc.com/trucking-logistics/drayage/empty-hanjin-boxes-stumbling-block-drayage-providers_20160906.html
Chassis Shortages at the Port of Los Angeles – Long Beach
It has been reported that a serious chassis shortage is occurring at the Port of Los Angeles – Long Beach. The lack of available chassis has led to truckers being unable to pick up containers prior to the last free day resulting in demurrage charges. It is suspected by trucking companies and terminal operators that some beneficial cargo owners may be hoarding chassis. This “street dwell time” results in equipment sitting in warehouses longer than usual, creating an artificial shortage of chassis in the supply chain.
Canada
September 15, 2016
Canada – European Union Trade Agreement
Canadian Trade Minister Chrystia Freeland, while speaking at the recent Toronto Global Forum said, “We’re working hard for it to be this year when CETA, the Canada-EU trade agreement, is signed. We’re working toward signing in October and ratification early next year”. Additional detail from Global Affairs Canada is available at: http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/ceta-aecg/index.aspx?lang=eng
