Unitrans Global Logistics Newsletter | Edition 69 | January 17, 2017
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Unitrans International Logistics Global Newsletter

In Edition 69:
> Chinese New Year
> CBP Delays January 14 ACE Deployment
> FWS Announces Suspension of ACE Pilot
> General Rate Increases
> CBSA Trade Compliance Verifications
> China's Red Smog Level Closes Factories
> Elaine Chao Confirmed as Transportation Secretary
> November Trade Deficit
> Free Trade Agreement Changes may be on the Horizon

Links of the Week

Air Freight Market Growth To Rise Through 2021

Shipping Container Hotel

U.S. Fish and Wildlife Adds the Bumble Bee to List of Endangered Species

Unitrans Newsroom

Chinese New Year

As announced, Chinese New Year (CNY) will occur Friday, January 27, through Thursday, February 2. Please consider that many businesses will be closed for two weeks or more. Manufacturing and logistics activities could be impacted for a month as some companies close for an extended time before or after the official CNY dates. CNY is celebrated across Asia and many countries will have similar business downtime.

We recommend that clients consider shipping additional stock prior to CNY due to the congestion leading up to and following the holiday. Increases in cargo volumes will impact vessel and warehouse capacity, limiting the total available space. Port operations, vessel sailing schedules and customs clearance activities are also typically impacted during the CNY holiday. If you have any questions, please contact your local Unitrans International representative.


CBP Delays January 14 ACE Deployment

After receiving stakeholder feedback, Customs and Border Protection (CBP) has determined that the deployment of post release capabilities including liquidation, drawback, reconciliation, duty deferral, collections, statements and Automated Surety Interface should be postponed. CBP will proceed with Notices of Liquidation on CBP.gov on January 14 as planned. Over the past few weeks, the trade community raised concerns that the complexity of the ACE (Automated Commercial Environment) deployment needed additional testing to ensure a smooth transition. Additional updates as well as a revised implementation date will be provided by CBP in the coming weeks. Read more here.

FWS Announces Suspension of ACE Pilot

On January 12, 2017 U.S. Customs and Border Protection (CBP) announced the suspension of the U.S. Fish and Wildlife (FWS) ACE pilot. Read more here.

General Rate Increases

The Trans-Pacific Eastbound Trade (TPEB) carriers have announced a GRI (General Rate Increase) in the amount of $20/CBM, $40/MT, $900/20', $1,000/40', $1,125/40'HQ and $1,265/45', effective February 1, 2017. In addition to this, TPEB carriers have announced a GRI of $12/CBM, $24/MT, $540/20’, $600/40’, $675/40’HQ and $760/45’, effective February 15, 2017.

Unitrans International will continue to work diligently with carriers to mitigate these GRI's in support of our customers. If you have any questions, please contact your local Unitrans International representative.

CBSA Trade Compliance Verifications

The Canada Border Services Agency (CBSA) has posted an important update of its Trade Compliance Verifications. The Trade Compliance Verifications is a list of commodities which the CBSA will be focusing compliance efforts on in the coming months. The publication notes the potential misclassification of the following items:

  • Curling Irons
  • Furniture for Non-Domestic Purposes
  • Disposable & Protective Gloves
  • Batteries
  • Footwear
  • Articles of Plastic
  • Articles of Iron or Steel

Please note that import entries into Canada under HTS (Harmonized Tariff Schedule) codes for these priority items may be subject to Customs examination and document review. If you have any questions or concerns, please contact your local Unitrans International representative.

China's Red Smog Level Closes Factories

China has recently issued red level smog warnings, the most severe level in its warning system, for multiple metropolitan cities. In mid-December, the smog reportedly covered 3.9 million square miles, which is approximately the area of the United States. As recent as last week, Beijing and other northern and central cities were still experiencing thick smog. The elevated smog levels have caused flight delays and highways to close, as well as prompted the closing of factories, schools and construction sites.

China’s heavy use of coal and inefficient cars on roadways are reportedly contributors to the smog. Inspectors have been dispatched to audit factories in the area for excessive pollution. It has been reported that over 500 Chinese companies have already been fined, with a concentration in northern and central China. Factory closures are occurring as the country is also preparing to celebrate the Chinese New Year (CNY), which could cause additional delays in production.

Elaine Chao Confirmed as Transportation Secretary

Senate hearings on January 11, 2017 confirmed the nomination of Elaine Chao as the new leader of the U.S. Department of Transportation (DOT). As the Department of Transportation Secretary, Chao has stated that her top priorities will be infrastructure repairs and expansions, as well as providing good stewardship while tackling the disparities between urban and rural transportation. Her primary agenda items include safety, preparing for the future with new technology and using the appropriated funds wisely. Previously, Elaine Chao was the Secretary of Labor under the George W. Bush administration during the years of 2001 and 2009.

November Trade Deficit

The United States trade deficit rose by 6.85 percent during the month of November compared to the previous month. Imports reached the highest level in 18 months, with a 1.1 percent increase, primarily due to an increase in foreign oil imports. Exports fell slightly in November, to $185.8 billion, with a reduction in large commercial aircraft as a key factor. Read more here.

Free Trade Agreement Changes may be on the Horizon

With the inauguration of the President-elect three days away, the future of free trade programs such as NAFTA (North American Free Trade Agreement) and the TPP (Trans-Pacific Partnership) are unclear. Trade-focused members of the U.S. House and Senate are requesting that the needs of U.S. workers and businesses are considered before any major changes are proposed. Experts state that it is unlikely that the United States would withdraw from NAFTA completely. However, renegotiations are expected. Annually, there is more than $500 billion in trade between the United States, Mexico and Canada.

International Holiday Calendar

*Holidays do not necessarily indicate close of business*


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