Unitrans Global Logistics Newsletter | Edition 24 | May 08, 2015
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In Edition 24:
ISF Full Enforcement
West Coast Update
Operational Updates
German Rail Strike
Port of Busan Expansion Project
International Holiday Calendar

Links of the Week

U.S. International Trade in Goods and Services

Air Freight Resumes Modest Growth Trend

Arrival of Four New Super Post-Panamax Cranes Mark New Era for Barbours Cut

 

ISF Full Enforcement Effective May 14, 2015

On January 26, 2009, U.S. Customs and Border Protection began a program called the Importer Security Filing, an initiative created to help improve efficiency and security in global trade. During the last five years, the ISF program has evolved from informed compliance, enforcement, and cargo holds to ISF full enforcement with liquidated damages (LD).

In a webinar presented on May 5, 2015, Customs and Border Protection (CBP) discussed changes to the agency's position on enforcement of the Importer Security Filing (ISF) requirements. Violations of the ISF requirement can accumulate Liquidated Damage (LD) claims of up to $5,000 per individual violation and up to $10,000 per filing. This includes late filings, failure to file, and incomplete or incorrect filings. Currently, local ports are allowing filers up to 3 written notices before an issuance of an LD penalty however, this will change. CBP has announced that effective May 14, 2015, ports will be able to issue LD claims without the issuance of a warning letter and there will be no requirement for the LD claims to be issued from headquarters, but may be issued directly from the local ports. Mitigation procedures apply to any ISF LD penalty that is issued.

Below is the link to the presentation used in CBP's Importer Security Filing (ISF) Enforcement Update webinar. Please contact your local Unitrans representative if you have any questions.

West Coast Update

Direct ChassisLink recently expanded its Southern California chassis pool to include members of the Grand Alliance chassis pool. The expanded chassis pool will now provide service for former Grand Alliance Chassis Pool customers including: Hyundai Merchant Marine, Mitsui O.S.K. Lines, Hapag-Lloyd, OOCL, Hamburg Sud and Pasha terminals, as well as its current customers: Maersk Line, Mediterranean Shipping and Horizon Lines. The pool of pools contains about 82,000 of the approximately 100,000 chassis in operation at the two ports and four area rail yards.

On Monday, May 4, the Marine Exchange of Southern California reported there were zero container ships at anchor in the San Pedro Bay. The movement of vessels directly to berth upon arrival is considered to be one of the final steps needed to bring the largest U.S. port complex back to normal operations. However, West Coast marine terminals continue cargo cleanup efforts after months of labor contract negotiations. The cargo backlog continues to affect container availability and inland delivery time frames.

Operational Updates

  • Memphis rail operations are experiencing heavy volumes due to cargo surges from West Coast backlog, creating short term driver and chassis shortages.
  • The Dallas area continues to combat chassis shortages.
  • Truck power issues continue to impact many Midwestern cities. Additionally, there is a shortage of available companies to dray hazardous containers.
  • Canadian National Railway intermodal container dwell times have increased to an average of 5-9 days.
  • The Port of Virginia will maintain its Saturday gate hours at Norfolk International Terminal (NIT) through Saturday, June 27.

If you have any questions or concerns, please contact your local Unitrans International account manager.

German Rail Strike

On Monday, May 4, German locomotive drivers began a six-day strike, disrupting cargo movements across the European country. GDL, the drivers union, represents 20,000 drivers and is seeking a 5 percent wage increase. Additionally, GDL is attempting to reduce the work week from 39 hours to 37 hours. The state owned railway, Deutsche Bahn, is Europe's largest rail freight operator and transports around a fifth of Germany's freight, more than 600,000 metric tons a day. The strike is expected to cost the industry around 500 million euros ($560 million USD). On Thursday, May 7, GDL rejected a Deutsche Bahn proposed independent mediator, therefore, the strike will extend through Sunday morning, as originally announced by GDL.

Port of Busan Expansion Project

South Korea is set to spend $42 million on an expansion project for the Busan New Port. The plan includes the addition of 15 berths to increase the port's annual container handling capacity by 15.8 million TEUs. The expansion will also include improvements to container terminals, feeder terminals and multipurpose terminals, a liquid natural gas bunkering facility and a logistics park. Additionally, a dredging project will allow for larger ships to call at the port.

International Holiday Calendar

*Holidays do not necessarily indicate close of business*

 


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