Greetings Importers and Business Leaders,

Welcome to the June edition of our US Imports update newsletter, where we bring you the latest insights and developments shaping the landscape of international trade. This month, we delve into key trends, policy updates and market movements affecting importers across various sectors.

Trade Update: Rates, PSS, GRI

Throughout May and the first week in June, the ocean freight container shipping market has seen spiraling spot rates. On the two major trades out of the Far East into US East Coast and US West Coast the average spot rates have now comfortably surpassed the peak during the Red Sea crisis in January and February. Space and equipment from Asia are becoming more critical due to voided sailings and equipment shortages. These are levels not seen since 2022 when the market was still feeling the impact of the Covid-19 pandemic.

With peak season starting soon, the Lines have also begun to announce Peak Season Surcharges (from Asia) and General Rate Increases (from Europe). These PSSs and GRIs will be effective Gate-In date July 1, 2024. You will hear directly from your Heneways USA Inc. representative regarding applicable charges.

Port Issues

In the USA, the East Coast International Longshoremen’s Association (ILA) canceled master contract talks on Tuesday with the United States Maritime Alliance (USMX) over automation and wage increase complaints. According to Freightwaves.com, “The ILA, which represents 85,000 workers at East Coast and Gulf Coast ports, said it will not meet with USMX until the automated gate issue is resolved.

The current ILA contract expires on September 30th, 2024. For more information, please see here: Freightwaves: ILA Dockworkers seek wage increases

In North Europe, the German Trade Union has threatened to strike at the country’s key ports of Bremerhaven, Hamburg, Bremen and Emden after talks failed to secure an increase in hourly wages. In France, the labor unions have already engaged in one day and 4-hour work stoppages without success and therefore more 24-hour strikes have been scheduled for late June and four-hour walkouts on three days of each week at all major ports could lead to operational issues. For more information, please see here: Theloadstar.com: More strikes at German and French ports.

The port of Singapore is facing congestion caused by various factors including off-schedule ship arrivals and “vessel bunching” due to the Red Sea Crisis and the diversion of ships through the Cape of Good Hope. “Container volume handled at the world’s 2nd busiest port has also increased dramatically due to supply chain disruptions at several upstream locations.” says Maritime Insight.com. See the full article here:

Marineinsight.com: Singapore port congestion

Trade Policy and Regulations

Tariff Adjustments: The U.S. government has recently adjusted tariffs on several imported goods as part of ongoing trade negotiations. Importers are advised to stay updated on these changes to optimize cost-efficiency and compliance.

Customs Procedures: There have been updates in customs procedures aimed at streamlining clearance processes and enhancing security measures. Importers should ensure they are in compliance with all updated requirements.

Yours sincerely,

Larne Davis

Director

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