President's Desk Newsletter -July2023
Eastern Shipping Worldwide
A better shipping experience. Easy going for you. Easy going for your cargo.
Air
TSA security exemption?for unwieldy air cargo sunsets Oct. 31
The Transportation Security Administration’s grace period for “impossible-to-screen” shipments is ending on October 31st. Soon, companies that ship oversize or liquid products could be prevented from using air transport if they don’t adopt security measures to check for explosives by the end of the grace period. The TSA is urging shippers to quickly sign up for the Certified Cargo Screening Facility (CCSF) program, which allows non-airline companies that follow TSA-approved criteria to inspect cargo and tender it to the airlines following strict chain-of-custody requirements. The program was created to prevent backlogs at crowded airline warehouses by pushing more security checks upstream.
Ocean
Panama Canal drought affects cargo shipments?
The drought affecting the Panama Canal is forcing container vessels to lighten their loads and pay higher fees, with further increases in the cost of shipping cargo through the canal expected this summer. The restrictions require container vessels to lighten loads by either reducing carrying capacity or limiting the weight of goods passing through. The delays at the Panama Canal due to drought are doing no favors for a container ship sector that is already hurting from less demand. That shrinks available capacity, boosts the risk of delays, and leads to surcharges paid by cargo owners.
Land
Canada's dockworkers strike impacts freight rail operations
The dockworkers strike at West Coast ports in Canada is affecting container cargo traffic at two of Canada’s busiest ports, Vancouver and Prince Rupert, key export gateways for the country. Canadian railway (CN) has taken steps to help mitigate service disruptions to Canada’s West Coast supply chains by preventing the flow of certain traffic and reducing intermodal customer capacity allocations to British Columbia ports. Meanwhile, Canadian Pacific Kansas City (CP) has implemented temporary embargoes for export traffic destined to the Port of Vancouver, which allows traffic “to move west while protecting network fluidity.” Norfolk Southern (NS) said in a Thursday service update that because CN and CP are no longer accepting interline shipments for that region, NS is no longer able to ingate at Deltaport and Roberts Bank in greater Vancouver and the Port of Prince Rupert.?
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Customs Brokerage
CBP Introduces Customs Broker Education Requirements
The U.S. Customs and Border Protection (CBP) has announced a new continuing education requirement for customs brokers. The new regulation requires individual customs brokers to earn 36 hours of continuing education every three years on evolving customs rules and related U.S. trade laws in order for customs brokers to maintain a valid license. CBP and partner government agencies will offer a variety of continuing education credits at no cost to customs brokers. Training and educational activities offered by a party other than CBP or a partner U.S. government agency will require approval by a CBP-selected accreditor.?CBP will offer additional guidance on continuing education requirements for the upcoming 2024-2027 triennial status period and will provide information on course offerings through CBP and partner U.S. government agencies on a future date.??To read the complete final rule, effective July 24, 2023, visit the?Federal Register.
EPA Removing ‘Ancient Engine’ Exemption for Non-Road Vehicle and Engine Filings
The EPA rulemaking, Control of Air Pollution From New Motor Vehicles: Heavy-Duty Engine and Vehicle Standards - 88 FR 4296, was finalized on January 24, 2023,?and became effective March 27, 2023. The rule eliminates the exemption for ‘ancient engines’ in non-road vehicles.?An ‘ancient engine’ is defined as an engine first manufactured at least 21 years that is still in its original configuration, subject to 40CFR 1068.315(i).?The identical configuration exemption will continue to be available to allow importation of nonconforming engines.
The exemption code of ‘9’ reported in the PG24 record remarks code should not be used when filing for PGA message set for what was the paper form 3520-21 for non-road vehicles and engines.?The ACE software is being updated to reject if exemption code ‘9’ is used.?The EPA supplemental to the CATAIR has been updated to remove this code. The updated IG can be found here:?https://www.cbp.gov/document/forms/epa-supplemental-catair-guidelines.?A CSMS will be sent when this is in production but is expected no earlier than August 5.
Eastern News
Eastern Shipping Worldwide?is more than just a freight forwarder and customs broker. We are also a racing team?with a passion for precision and purpose (Eastern Racing). That’s why we are proud to sponsor?Gonella Racing, a team that helps prepare young drivers for the?F4 US Championship. At Eastern, we share Gonella Racing’s values of excellence, innovation, and teamwork. We believe that these values are essential for success in both racing and logistics.?With three of the six?F4 US Championship?events completed,?Gonella?Racing Team?holds a commendable 6th place out of 17 teams in the overall standings. This strong position is largely thanks to their outstanding performance in the early stages of the championship.?The next event, the New Jersey Lottery Speed Tour?scheduled on July 28th – 30th, promises to be a thrilling spectacle. As the championship progresses, Gonella Racing is poised to build upon its promising results and leave a lasting impact on the F4 US Championship. For more information on race results, current standings, and future event updates, visit?Eastern Racing.