Logistically Speaking - HOT SHEET - Week 13
April 5, 2022
The Chinese government is beginning a two-stage lockdown of the world's third-largest city, home to 25 million.
- Home to regional headquarters of hundreds of multinational manufacturers, the ripples will be felt worldwide.
- The port remains open due to a closed-loop system, but as the lockdowns hit warehouses and truck drivers, we will begin to see significant disruption akin to the Shenzhen lockdown a few weeks ago.
- Solution: We constantly communicate with our Dunavant Asia office and network to solve problems just as quickly as they arise.
Ocean Shipping Reform Act
On March 31, the Senate passed the bill by unanimous vote.
- The bill will now head to the House, where it may face some headwinds with some members wanting to add certain provisions.
- The measure, which the House would still have to approve before it goes to President Biden, is intended to force ocean carriers to accept more U.S. exports and reduce shipping rates.
- Rep. Dusty Johnson (D-SD), a lead sponsor of the bill, gives the bill a "well north of 80%" chance of passing.
Upcoming surge LA ports
While the queue of ships calling LA and Long Beach has fallen off the past two months, it will be short-lived.
- Gene Seroka, executive director of the Port of Los Angeles, told the reporters that another surge is imminent.
- While China's lockdowns gave the ports some breathing room, inbound volumes will pick up with retailers looking to stock up on inventories.
- In addition, port labor negotiations are set to begin May 12 ahead of July Expiry, along with peak season volumes.
- Ships awaiting space at the Port of LA and Long Beach have fallen to 49 from a peak of 103 in January.
- Solution: Dunavant Import and Dray teams continue to monitor each port offering alternative routes when we forecast congestion.
Los Angeles clean truck fee
Starting April 1, 2022, a $10 per TEU fee will be placed on all loaded import and export containers hauled by trucks.
- Low nitrogen-oxide and zero-emission trucks will be exempt.
- The fee approved by the Los Angeles Harbor Commission will be assessed on cargo owners, and we can expect Long Beach to follow.
USTR extends expired Section 301 Tariffs
The USTR announced the extension of 352 exclusions from section 301 tariffs on China and will remain in effect through December 31, 2022.
- The exclusions include 89 products under Section 301 Tariffs. Please click HERE to view the list of products.
- Solution: If you find that your product is on the list, don't hesitate to contact your Dunavant Rep for more information.