Unitrans Global Logistics Newsletter | Edition 72 | March 31, 2017
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Unitrans International Logistics Global Newsletter

In Edition 72:
> Delta and Korean Air to Expand Partnership
> New Alliance Structures to Begin Operations Tomorrow
> India Truck Drivers on Strike
> Notice About CBP Forms 28 and 29
> BREXIT Could Help UK Avoid EU Port Services Regulation
> Ascent Global Logistics Gear

Links of the Week

US Government's Laptop Ban is Now in Effect

Are drones the future of freight transport?

ATA Reports Sharp Decrease in Q4 Truckload Driver Turnover Rate Port of Houston Invests in Container Terminals

Port of Houston Invests in Container Terminals

Container Lines Slapped with Strict New Pricing Rule in Vietnam

Unitrans Newsroom

Delta and Korean Air to Expand Partnership

Delta and Korean Air Lines has reached an agreement for a joint venture arrangement. This will offer more than 290 destinations in the Americas and more than 80 in Asia. With regulatory approval, the trans-Pacific joint venture will allow both airlines to share the costs and revenues on flights and coordinating schedules. "This agreement deepens our longstanding partnership with Korean Air and will provide the global access and seamless service our customers demand," said Delta CEO Ed Bastian. "We look forward to providing customers of both carriers with industry-leading service between the U.S. and Asia."

Delta and Korean Air to Expand Partnership

In June 2017, Delta will be launching a new nonstop service between Atlanta and Seoul. At the same time Korean Air will continue to expand its US–Korea network, with the introduction of a third roundtrip between Los Angeles and Seoul, as well as a second flight between San Francisco and Seoul.

New Alliance Structures to Begin Operations Tomorrow

As published in previous newsletters, the new ocean carrier alliance structures will officially take effect tomorrow, April 1. Among many other changes, the size of vessels deployed on the Trans-Pacific Eastbound Trade will increase, however, the number of vessel calls will decrease. Increased vessel sizes will produce an increased amount of container activity for each vessel call, forcing terminals to adjust labor, resources and storage space.

According to a recent analysis by LinerGrid, increased terminal consolidation is expected in the coming years due to the new alliance structures. The study found that the number of port-to-port combinations on key trade lanes has reduced. The centralization of transshipment hubs and overall networks is expected to boost container volumes for some ports and terminals while creating a decrease for others.

Below is the ocean carrier alliance structure as of tomorrow:

  • THE Alliance will include Hapag Lloyd-UASC, K-Line, MOL, NYK and YMLU.
  • The Ocean Alliance will include CMA CGM, APL, COSCO, Evergreen and OOCL.
  • The 2M will include Maersk and MSC (vessel sharing agreements with HMM* and Hamburg Sud).

*U.S. regulators voted this week to officially allow the 2M partners (Maersk and MSC) to enter a slot-exchange agreement with HMM. While the vote was unanimous, the Commissioner of the FMC (Federal Maritime Commission) expressed some concerns. Read more here.

India Truck Drivers on Strike

Indian truck drivers in the southern part of the country have gone on strike in protest of the recent changes to the Value Added Tax (VAT) on fuel. A time period has not been announced for the strike but delays are expected for shipments originating in Tuticorin and Cochin. The situation is also delaying delivery of cargo into Container Freight Stations (CFS) and delaying the loading and processing of containers into ocean carrier container yards (CY). While the strike is currently limited to the South, Northern ports are also being impacted due to the increased congestion. There have been reports of delays and rolled cargo in Mumbai, Mundra and even at ports in Bangladesh.

Notice About CBP Forms 28 and 29

Please be aware that CBP (U.S. Customs and Border Protection) CF28 (Customs Form - Request for Information) and CF29 (Customs Form - Notice of Action) are increasingly being sent directly to the importer of record with no copy being delivered to the Customs Broker. This is important as the Customs Broker will not have visibility to these notifications. It is imperative that the importer of record communicate the receipt of these forms with their Customs Broker to provide necessary information to CBP. See a sample of a CF28 by clicking here. If you have any questions or concerns, please contact your local Marisol International representative.

BREXIT Could Help UK Avoid EU Port Services Regulation

European Union members must implement the Port Services Regulation by March 24, 2019, however, the United Kingdom is attempting to gain exemption due to its planned departure from the EU. The Port Services Regulation is intended to improve market access and create transparency in public funding in an attempt to level the playing field.

"The regulation will be effective in two years, and this means the requirements are expected to be implemented into UK law before we leave the European Union," said Richard Ballantyne, chief executive of the British Ports Association. "As the UK ports industry is predominantly private and competitively managed, the new rules are unnecessary and unwelcome."

"The UK ports industry has consistently lobbied against the port services regulation, and we are therefore hopeful the UK requirements will be overturned after BREXIT," Richard Ballantyne, chief executive of the British Ports Association said. "We are actively working with the UK government to ensure the best post-BREXIT outcome for the ports industry."

A key milestone for BREXIT occured this week when Theresa May, the Prime Minister of the United Kingdom, submitted a letter to the EU Council President triggering Article 50 of the Libson Treaty. Read more here.

Ascent Global Logistics Gear

Do you want to win Ascent Global Logistics gear? During the month of April, we will be giving out free gear to select LinkedIn followers. Be sure to go follow the Ascent Global Logistics company page to be entered to win. Click here to go to the Ascent Global Logistics LinkedIn page.

International Holiday Calendar

*Holidays do not necessarily indicate close of business*


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