About 19213998

TPEB TRADE UPDATED 4-9-21

Dear Client,

 

We are facing a critical time in our industry that has not been experienced for years and it is making it very challenging in regards to the effect on all supply chains.

 

See the below information:

 

  • Equipment shortages in China are being experienced.  Carriers are doing all possible to replenish origins however the imbalance in trade is making this increasingly difficult and it is also very costly to send empties back to Asia.

 

  • Space is extremely short at this time from all China base ports.  The arbitrary origins ports are even worse due to the smaller feeder vessels so trucking from the feeder port to the mainline POL is required in many cases.

 

  • Rates are at an all-time high and continue to increase with premium rates being required in exchange for space.  Even with premium rates there is no guarantee of obtaining space on the requested vessels. 

 

  • The space situation is most critical at this writing to the USEC however the USWC is also problematic.

 

  • For cargo that is needed to the USEC and/or inland locations you may wish to consider discharge on the USWC and then  transloading into domestic trucks to move inland,  as needed,  to keep the cargo flowing.

 

  • We do not expect that this situation will improve in the short term and could last thru August based on all indications at this time.

 

In order to assist you with your imports it is critical that you confirm the bookings immediately when sent so we can work on gaining space as needed.  The space situation changes from day to day due to the overall volume of orders being requested so important to advise ASAP to assist us to gain the space on your behalf.

 

Thanks for your continue support and rest assured we are doing all possible to keep your cargo moving.

 

Sincerely,

EC Capacity/Market Update

Dear Valued Customer;

 

The Trans -Pacific import market remains extremely strong with cargo volume exceeding vessel and container supply.

 

Although West Coast demand continues to exceed supply, the East Coast demand far exceeds the East Coast supply.

Blank sailings, terminal congestions coupled with the continuing increased demand will create  unprecedented international transportation supply shortages to the East Coast.

 

Currently we anticipate blank sailings from Ningbo to the EC during the month of April. We anticipate sailings from other China ports will also be impacted. Our core carriers are advising that EC capacity is  fully booked thru August whereas West Coast capacity is currently booked thru June.

 

We are aggressively pursuing any and all options to minimize the impact to your supply chain, however we anticipate rates to continue to escalate with space becoming the critical issue during at minimum the next 2-3 months.

 

Please insure you are providing your forecast and booking requirement as early as possible to USPTI.

 

Please contact your USPTI representative for any specific details

Market Update Feb 24,2021

Dear Valued Client,

 

We continue to see a very strong market thru the first quarter of 2021 and beyond.  Space, and equipment continue to be scarce due to strong demand up to and immediately after Chinese New Year.

 

It appeared  that there will not be a slow season and the strong consumer demand will continue into the second quarter 2021.  We request that book early and provide forecasts and projections that will assist us to obtain the space and equipment required to service your import requirements.

 

Vessel schedules and service integrity, with all carriers, continues to be a challenge. Terminal and berthing availability continues to be problematic at both origin and destination ports.  Weather has also had some effect on vessels crossing the Pacific Ocean and is currently impacting intermodal rail operations.

 

Freight costs will remain high in view of the space concerns, critical shortages of equipment and overall consumer demand.

 

Please contact your USPTI representative for detailed information or any specific questions

 

Thank you for your support and we look forward to a long term relationship of service.

Trans Pacific Market Update Dec 11, 2020

Dear Valued Client

 

The extremely strong  trading condition, with container volume exceeding available supply, is forecasted to remain strong through Chinese New Year.

 

Equipment shortage throughout Asia will continue to impact the ability to secure equipment necessary for booking.

 

Likewise we note many carriers are now focusing on “mother ports” and eliminating service from smaller/non-direct call ports. You may have to consider utilizing direct call ports to protect the integrity of your supply chain.

 

It is anticipated that ocean freight cost will continue to increase prior to and immediately after Chinese New Year. With the ongoing capacity issues numerous carriers are not in a position to accept any new business.

 

Thank you for your support.

 

Please contact your USPTI representative with any concerns

ONE Line Apus Update Incident Update and Market Impact Dec 9, 2020

Dear Valued USPTI Customers

 

 

ONE Line Apus Update Incident Update and Market Impact

 

ONE Apus is now confirmed to be safely berthed in the Port of Kobe after losing 1,816 containers overboard when it encountered severe weather on Monday, November 30, 2020.

 

A full safety inspection of the vessel and its remaining cargo will now take place with the assistance of local emergency services to ensure that there is no threat to people or the environment posed by the dislodged and damaged containers that remain on deck.

 

Once the vessel and cargo are declared safe, surveyors from the various stakeholders will make their initial assessments whilst stowage planners and stevedores formulate and implement a plan to ensure the safe removal of the remaining units. Then, a thorough evaluation will be made on the exact number and type of containers that have been lost or damaged and damage to the vessel.

 

USPTI anticipates the unloading of containers and vessel assessment to take several weeks. We are still awaiting an actual list of potential USPTI cargo damaged or impacted and will keep you updated on the progress as provide you with additional information as it becomes available.

 

USPTI is still evaluating the  impact to an already space constrained market and anticipates the incident will reduce overall available space for the foreseeable future as demand continues to outpace available container supply. Likewise we anticipate the incident will further erode equipment availability.

 

We will provide additional updated as more info become available.

 

Thank you for your support and we look forward to a long term relationship of service.

 

Should you have any questions or concerns please contact your USPTI representative.

USPTI – Client Update Dec 4, 2020

Dear Valued Client;

 

Thank you for your support during these difficult times.

 

The past six months have been challenging due to the uncertainties created by the CoVid 19 pandemic. Demand for container space has outpaced container capacity and has created unprecedented increases in ocean freight cost.

 

Historically peak season should be winding down but we anticipate volume to remain strong thru the first quarter of 2021. The China government will restrict the normal travel during the Chinese New Year celebration. Companies will stagger the travel of their employees over several week. We believe this stagged travel plan will slow production for several weeks before and after Chinese New Year. Albeit production make slow during this period one can anticipate space will still be at a premium. Furthermore, equipment shortages, port congestion and infrastructure stress (port capacity, chassis shortages and available inland carriage) will impact the supply chain.

 

Market  will prioritize lift based on contribution to profit and individual trade lane requirements. We anticipate trans-pacific rates to at minimum remain at current level or be subject to a premium on any a must ship cargo/PO  in the first quarter with carrier implementing peak season and equipment repositioning surcharges. One can envision that carrier will only accept cargo moving via market  rates plus additional  charge during the first quarter of 2021.

 

If you have pending PO we recommend you advance those PO’s for December shipment as we believe rates will be much higher in early 2021 than they are currently.

 

Our goal remains to offer quality reliable service at market rates. 2021 remains somewhat uncertain, as the pandemic surge may potentially impact retail sales and customer spending.

 

Please contact your USPTI representative with any questions, problems or concerns. 

 

Thank you for your continued support and we look forward to a long-term relationship of service.

USPTI Market Update Aug 21, 2019

Trans-pacific Import trading conditions are being impacted by uncertainty in duties and in general a concern over general economic conditions.

Although volume is not anticipated to peak as substantially as in the past, carriers are voiding sailing which impacts supply and demand on a weekly base. Although void sailing could be considered an artificial mechanism to impact short term capacity one should note that the new emission standards for ships will be implemented Jan 1,2020. The need to retrofit vessels to meet these standard will dictate that vessels be taken out of service for the needed maintenance. Each carrier will establish individual plans to deal with the new regulations.

Albeit trading conditions are not as strong as we would like due to above noted reason space maybe an issue from/to certain location on certain weeks, thus please allow as much lead time as possible for booking to insure we can secure the services that meets or exceeds  your individual requirements

Since the concern over duties seems to be driving many purchasing decisions please note the below update on import tariffs.

According to the official notice from The US Trade Representative (USTR), they posed an explanation of the effective date below;

 

DATES: Additional duties at a rate of 10 percent ad valorem on the tariff subheadings set out in Annex A to this notice are applicable with respect to products that are entered for consumption, or withdrawn from warehouse for consumption, on or after September 1, 2019. Additional duties at a rate of 10 percent ad valorem on the tariff subheadings set out in Annex C to this notice are applicable with respect to products that are entered for consumption, or withdrawn from warehouse for consumption, on or after December 15, 2019.  

https://ustr.gov/sites/default/files/enforcement/301Investigations/Notice_of_Modification_%28List_4A_and_List_4B%29.pdf

The date should be the fully released date when the imported goods must be actually arrived at the port AND customs are also released without further hold. So the goods are legitimately entered into the US Territories for consumption.

 

Example 1.

If goods actually arrived on 08/31/2019, customs entry filed on 08/27/2019 and customs released on 08/29/2019. No additional 10% duty in this case.

 

Example 2.

If goods actually arrived on 08/31/2019, customs filed on 08/27/2019 but customs put on hold for review or exam until 09/04/2019. It still have an additional 10% duty.

 

Making Customs entry before 9/1/2019 will not avoid the chance of getting the additional 10% duty.

Please review the below links for specific information.

https://ustr.gov/sites/default/files/enforcement/301Investigations/List_4A_%28Effective_September_1%2C_2019%29.pdf

 

https://ustr.gov/sites/default/files/enforcement/301Investigations/List_4B_%28Effective_December_15%2C_2019%29.pdf

Requirements for First Sale Valuation

The First Sale rule could offer significant tariff savings for US importers.

However, few companies have adopted this rule in practice, as the legal requirements, documentation headaches, and practical problems involved can be daunting at the beginning.

Firstly, the multi-tier transaction generally must meet the following requirements by CBP:

  • Bona Fide Sale: The transaction – which is the first sale – between the manufacturer and the intermediary must be a bona fide sale, complete with a transfer of title.
  • Arm’s Length: The Chinese manufacturer and the intermediary must be unrelated or, if related, conduct their transactions at “arm’s length”.
  • Clearly Destined for Export: At the time of the “first sale”, the merchandise must be clearly destined for export to the US. For example, the goods are shipped directly from the supplier to the US, or the goods are specially designed or labeled according to the standards of the US market or according to the requirements by the US importer.

Secondly, to prove that the initial “first sale” price is accurate, the manufacturer, the intermediary, and the US buyer have to be prepared to submit the following documents:

  • Purchase orders with copies of terms between all parties;
  • Confirmations;
  • Invoices;
  • Written contracts or sales agreements;
  • Bills of lading for final products and materials;
  • Proof of payment (e.g. letters of credit);
  • Production orders and/or manufacturing instructions and other unique specifications of the merchandise to conform to the buyer’s standards;
  • Examples of labels, logos, stock numbers, bar codes, and other unique merchandise or carton marks; and
  • Examples of country of origin marking on finished goods, hang tags, etc.

Why don’t more companies take advantage of the First Sale rule?

There are various reasons why more companies haven’t employed the First Sale rule, but the main reason is that businesses need to expend a considerable amount of time and resources to ensure a given transaction meets compliance and internal control requirements.

Since the information as mentioned above is often kept by different partners in the supply chain, cooperative relationships and responsibilities need to be developed between the manufacturer, the intermediary, and the importer.

Importers need to persuade other partners to disclose the “first sale” price and ensure only the right people see the sensitive documentation and data, which requires tight control over the process.

In addition, there are risks of errors and non-compliance, and failure to comply with the requirements of the First Sale rule could be construed as a lack of reasonable care and may result in a fine.

What are the experts saying?

A growing number of foreign firms are studying the applicability of the First Sale rule, as they look to offset rising costs stemming from the trade war.

Our CHB  explained, “In the case of a Chinese good sold through a wholesaler in Hong Kong to a US buyer, the good would still be subject to US import tariffs set for China but the value of the Chinese good, on which taxes are calculated, would be lower.”

While this strategy has clear benefits, experts caution that not all businesses qualify to use it.  Our CHB warned, “The First Sale rule is subject to a strict assessment by US Customs, so it is not possible for all firms to use this strategy.”

“Firms that are seriously considering using the First Sale rule should closely study whether they are eligible,” Our CHB said, “or else they risk being overturned by US Customs at a time they are likely paying closer attention to the rule.”

Besides legal eligibility, Our CHB also said that the rule is not suited to all types of businesses. “The ability of companies to leverage the First Sale rule in the context of the US-China trade war will depend on the presence and markup of wholesalers between a Chinese manufacturer and US buyer.”

 

Our CHB continued, “If wholesalers are not present in the supply chain or the First Sale rule is already being applied, there will be little benefit in exploring this option as a trade war mitigation instrument.”

Although it is not a universal solution for all companies hit by the trade war, it can still be an effective tool for those whose business model and legal status fit. “If wholesalers are present and the First Sale rule is not being applied, larger wholesaler markups will provide greater room for maneuverability,” .

With businesses on both sides of the Pacific feeling the impact of eight months of US-China tariffs, affected businesses are eager to explore any solution to minimize their costs.

In this regard, the First Sale rule could be an effective option for businesses to lower costs without sacrificing operational inputs or significantly altering pre-existing supply chains.

Booking Forecast Request Update April 24, 2019

Dear Valued Client,

USPTI senior management is in Asia for the routine yearly travel schedule and preparing for the spaces allotment and protection for our clients during the upcoming peak season.

During all the meeting and discussion with various ocean carriers we anticipate available container spaces could be the major issue this year.  The overall space capacity is only slightly increasing in 2019. However, carriers continue to void (cancel) sailing thus artificially adjusting supply and demand with blank sailings.

In addition, the potential low sulfur fuel oil requirement and/or installation of scrubbers required  by International Maritime Organization 2020 mandate which will be implemented for the fourth quarter of 2019  may create additional restraints on available capacity as carriers struggle to meet the environmental mandates.

USPTI is seeking your cooperation , and request all vendors to send a booking forecast as least 14 days prior to departure.  Any late booking request may be subject to space availability  and potentially additional cost in space is at a premium.

USPTI appreciates your support and will continue to keep you up to date on any issues which potentially will impact your logistic supply chain.

Best Regards

Market and Service Update March 19, 2019

As we move toward the historical Trans Pacific Eastbound contracting renewal season (May 1 ) we draw your attention to numerous blank (cancelled) during March, April and May. As carrier struggle with supply and demand, many carriers are opting to cancel sailings in an effort to artificially address the imbalance between existing demand for container space and container capacity.
Additionally carriers typically use the void sailing as time to do routine maintenance and repairs.
The void sailing may create a shortage of space and thus would request clients to forward their booking requirements as far in advance as possible (hopefully 21 days in advance of scheduled sailing) thus allowing USPTI to continue offering quality, dependable and reliable service at market driven rates.
Please contact your USPTI representative for details of void sailing and available options to insure your import requirements are satisfied.
U. S. Pacific Transport appreciates your continued supports and look forward to maintaining a long term strategic relationship.