President's Desk Newsletter
April 2023

President's Desk Newsletter

INDUSTRY NEWS

Panama Canal Increases the Number of Booking Slots in the Panamax locks & Neopanamax locks

The Panama Canal Authority (ACP) is increasing booking slots in the Panamax locks starting May 16, 2024, and adding an extra slot in the Neopanamax locks from June 1, 2024 . Regulations specify the number and type of vessels allowed per direction in both locks, with temporary priority given to passenger vessels in the Panamax locks during certain periods. Customer ranking remains unchanged, while the maximum authorized draft for vessels transiting Neopanamax locks will be adjusted to 13.71 meters (45.0 feet) TFW effective June 15, 2024, ensuring safe navigation aligned with operational requirements and projected Gatun Lake levels.?

To view the full Advisory to Shipping No. A-12-2024, visit the Panama Canal Official Website


Portland to close container terminal

Portland, Oregon will close its only container terminal by the end of September due to a lack of regular customers and significant financial losses in recent years . The decision follows the departure of International Container Terminal Services, Inc (ICTSI) in 2017, leaving Terminal 6 without major clients amidst labor disputes. Shippers in the region are expected to divert their shipments to Tacoma, Washington, as Portland's closure prompts a shift in logistics operations along the US west coast.?Read More


Gemini’s ‘hub-and-spoke’ model aims to eliminate blank sailings

Maersk and Hapag-Lloyd are set to end the practice of blank sailings with the launch of their new vessel-sharing partnership, the Gemini Cooperation, in February 2025 . The partnership is expected to achieve 90% schedule reliability across 58 global services using a hub-and-spoke network design. This model incorporates large ships on major routes supported by shuttle services with smaller vessels, enhancing the efficiency and reducing the need for canceled voyages. Additionally, the Gemini Cooperation will operate at reduced speeds, contributing to faster transit times and lower carbon emissions compared to current schedules. Pedro Silva, Senior Vice President at Hapag-Lloyd, highlighted the strategic placement of containers at major hubs to maintain full shipments and prioritize handling, thereby minimizing the risks associated with transshipping.?Read More


Image Credit: Michael Bliefert from Rotenburg/W, Deutschland, CC BY 2.0, via Wikimedia Commons

Digital trucker dispatch with CONROO APP now available at EUROKOMBI terminal

The CONROO GATE PASS, now accessible at the Hamburg EUROKOMBI terminal, enhances digital identification for truck drivers, streamlining processes and bolstering security . EUROGATE, in collaboration with Kombiverkehr, expands the deployment to EUROKOMBI, following successful implementation at other Hamburg locations. This solution eliminates paperwork, reduces waiting times, and heightens safety, advancing efficiency and sustainability in terminal operations. With plans for nationwide integration, CONROO's GATE PASS signifies a pivotal step towards modernizing logistics across EUROGATE's German terminals, promising enhanced efficiency and security for the entire supply chain. Read More


CUSTOMS BROKERAGE NEWS

Biden Calls for Steep Hike to Tariff on Chinese Steel

President Joe Biden is set to raise tariffs on Chinese steel and aluminum products to 25% as part of a broader policy to support domestic industries , announced during a visit to Pittsburgh. This increase from current tariffs up to 7.5% also includes a crackdown on indirect imports via Mexico and a new investigation into Chinese practices in shipbuilding and logistics. By implementing these policies, the administration seeks to bolster U.S. steel production, considered vital for national security, while risking heightened tensions with China. Read More


Image Credits: U.S. Department of Agriculture,

APHIS Revises and Strengthens Agricultural Quarantine and Inspection Program to Meet the Challenge of Protecting American Agriculture

The USDA's APHIS is updating its AQI program user fees to safeguard U.S. farms and forests from invasive pests and diseases, with the changes effective from October 1, 2024. Additionally, the exemption for small aircraft will be removed by April 1, 2025. Details of the rule can be found on the APHIS website , with publication in the Federal Register expected soon.



CARM R2 deployment has been DELAYED by the CBSA

The Canada Border Services Agency (CBSA) initially announced the internal launch of the CBSA Assessment and Revenue Management (CARM) digital initiative on May 13 to enhance compliance and enforcement efforts. However, due to ongoing strike vote activities by the Public Service Alliance of Canada, the launch has been postponed until at least October 2024 to mitigate potential operational impacts. Until then, trade chain partners will operate under existing processes. For importers, this delay means:

  • Billing and payment processes for duties and GST will remain unchanged.
  • Pre-authorized debit agreements for importer direct payment should be canceled in preparation for the new launch date.
  • HOC's Release Prior to Payment bond will continue to be used for goods release.
  • Importers should ensure CARM onboarding and registration, taking advantage of the interim period to complete requirements.
  • Registered importers should stay engaged, familiarize themselves with CARM features, and prepare for the upcoming launch

To view the full press release, visit canada.ca


China slaps anti-dumping levy on import of a US chemical amid rising trade tensions

China has escalated its trade dispute with the United States by imposing a 43.5% levy on imports of propionic acid , a chemical widely used in food, feed, pesticides, and medical fields. This action follows a July investigation that found damage to China's domestic propionic acid industry. The move came just days after President Biden called for higher tariffs on Chinese steel and the U.S. pressure on Mexico to block indirect sales of Chinese metal products. China's commerce ministry objected to these actions, vowing to protect its interests. These developments reflect the broader trend of escalating tariffs and trade tensions, complicating global supply chains and intertwining national policies with geopolitics in the global market. Read More


Iran Targeted With Sanctions, Export Controls After Attack on Israel

The U.S. has imposed new sanctions and export controls on Iran in response to Iran's recent air attack on Israel, targeting the country's drone program and revenue sources. These measures, joined by the U.K., aim to disrupt the network involved in drone manufacturing and steel production, with sanctions placed on entities linked to Iran's largest steel producer. The export controls expand to include basic microelectronics and aim to prevent Iran from obtaining certain items with U.S. technology. These actions are part of broader efforts by the Biden administration and allies to curb funding to Russia and disrupt war-related supplies, with recent discussions on potentially harsher penalties for export control violations.?Read More


Germany Moves to Simplify Import Sales Tax Process?

Hamburg and the Conference of Finance Ministers of the German states have unanimously agreed to advance the implementation of an offsetting model for import sales tax collection , aiming to streamline the process and reduce competitive disadvantages for logistics hubs like the Port of Hamburg in Germany. This move seeks to eliminate the current practice of paying import sales tax to customs upfront, with reimbursement only possible through tax return applications, paving the way for more efficient procedures. The Federal Ministry of Finance will now identify necessary measures and legal adjustments to initiate the implementation of the offsetting model.?Read More


EASTERN NEWS

Eastern Racing's Impressive 2nd Place Finish in the Concours Cup Finale

Eastern Racing achieved an impressive 2nd place at the Concours Cup finale held at the Concours Club in Miami, Florida, on April 20th. Throughout the series of six races, they?secured four podium spots, with Eric Wagner in car #1 maintaining 2nd place overall heading into the final round. Despite encountering technical challenges requiring a car switch, Eric showcased resilience, securing 2nd place in the final race. The championship standings saw Juan Pablo Martinez in car #4 clinching 1st place with 106 pts, followed by Eric Wagner in car #1 with 84 pts. TVI Racing 's support was instrumental in this success.

To view the full Round 6 video recap, visit:?https://www.youtube.com/watch?v=7ZHY_x9LJzc&feature=youtu.be







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