News

Trans-Pacific Import Trade Update August 20, 2018

Dear Valued Client;

Please be advised that the Shanghai and Ningbo areas are being negatively impact by inclement weather.

The area is under typhoon warning/alerts for several potential storms.

Due to weather related condition carrier will typically adjust their schedules. We anticipate potential disruption to ETD and impacting the actual ETA.

We anticipate the disruption to be short term and directly relates to safety and weather condition. The major impact will be from now (August 20, 2018) thru the first week of September.

We apologize for any inconveniences created by this uncontrollable situation and will make every effort to minimize any impact to your supply chain.

Please contact your USPTI representative with any questions or concerns.

Thank you for your continued support and we look forward to serving as your preferred transportation provider.

Trans-Pacific Import Trade Update August 16, 2018

Dear Valued Client;

The Trans-Pacific Import market remains robust. In addition to the historical surge of import volume during this time of year we opine that the ongoing dialogue between the world’s two largest GNP’s on tariffs is creating a rush to get goods entered into the USA prior to scheduled potential tariff increases. Although no final date has been confirmed for pending tariff increases, we anticipate the issue will not be concluded until late September or October thus continuing the volume surge through September and potentially October in an effort to potentially avoid duty increases.

Container carriers are fully booked for the foreseeable future. Rates have adjusted to reflect current trading conditions.

The historical additional pitfalls of a peak season will also most likely impact your supply chains. Lack of truck availability, terminal congestion and equipment shortage at origin will potentially raise their ugly heads in the near future.

Challenges will continue. USPTI is prepared to assist in your effort to minimize your expose to these external forces by continuing to offer quality reliable service at market driven rates.

Our dedicated staffs in both the USA and China are committed to assisting in your efforts to minimize any potential disruptions to your import program.

Thank you for your support.

Please contact your USPTI representative with any concerns or comments.

USPTI Market Update August 14, 2018

The Trans-Pacific import market continues to be robust.
Current demand for container space is exceeding available space. With cargo volume exceeding supply rates are increasing rapidly.
We request our clients to book a minimum of 14 days prior to sailing and would recommend 21 days prior to sailing whenever possible.
Although container space is at a premium, USPTI is prepared to meet the needs of our clients on all shipments. We remain committed to offering quality reliable services at market driven rates.
Please contact your USPTI representative for updated trading conditions and current rate
Thank you for your support and we look forward to a continuing relationship of service.

Trans-Pacific Market Update July 31, 2018

Dear Valued Client;

The Trans-Pacific inbound market is extremely robust.

All carriers are currently booked at 100% capacity through August 14. USPTI anticipates container space to be at a premium
In the short term. Due to current relationship between supply and demand rate have increases substantially and are non-negotiable

In our efforts to protect your interest, please book your cargo at minimum 21 days prior to sailing. Any additional lead time would be
appreciated and would greatly assist in our effort to secure the space you require.

Thank you for your support.

Please contact your USPTI representative with any question.

Trans-Pacific Market Update July 25, 2018

Dear Valued Client;

The Trans-Pacific inbound markets continues to be volatile. Demand for container space is currently greater than supply.

We anticipate demand to exceed supply for the next 45 to 60 days at minimum. Please plan accordingly.

We request each to send your booking request as early as possible so that USPTI can work with you and our carriers to reserve your required space in order
to insure that your cargo moves consistent with your required ETD and ETA.

USPTI will continue to provide you with quality and reliable service.

The uncertainty of trading conditions is expected to continue in the short term. We remain committed to servicing your individual requirement.

Thank you for your continued support as we build a long term relationship together.

Please contact your USPTI representative with any questions or concerns.

USPTI Market and Trade Update July 2018

Dear Valued Client;

To date this year, we have seen rising fuel prices, new environmental regulations, tighter intermodal capacity, trucker shortages, occasional labor issues, etc. These factors have created a chaotic environment in world trade and specifically in the Trans-Pacific trade.

Additionally the growing uncertainty regarding Sino-US trade relations has added to the complexity to trading conditions. An additional 200 billion dollar tariff increase was announced by USTR on July 11,2018 regarding an additional 10% duty increase. The most recent announced increase  list will covers general merchandise including but not limited to food products, stationary, household goods, building materials, fabric goods, refrigerators and furniture.etc….. Please note the below link for full details

https://ustr.gov/about-us/policy-offices/press-office/press-releases/2018/july/statement-us-trade-representative

 

In addition to the 7/11 announcement the link below includes the full details of of the initial list 1 and 2 tariff increases

https://ustr.gov/about-us/policy-offices/press-office/press-releases/2018/june/ustr-issues-tariffs-chinese-products

 

In addition to above issues impacting our businesses, once again merger Rumors and discussions are surfacing. Carriers are removing entire vessel strings as well as reducing the number of veseels on other strings.

All the above combined will artificially adjust supply and demand. USPTI anticipates space and service to be at a premium during the historical peak season. We request that if possible you provide a  monthly forecast so that we can secure the space and services required. Furthermore we would request that book your cargo at a minimum 14 days prior to departure.

USPTI is confident that with open communication between  our companies, USPTI can provide you with efficient and reliable services.

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

Please contact your USPTI representative with any questions or if you require further details.

 

 

USPTI Monthly Update June 20, 2018

Duty Increases

As international politics continue in the ongoing trade negotiations, the U S Department of Treasury has issued a first and second set of items that will be impacted and duty increases of 25% to be applied on set one effective July 6,2018.

This list of products consists of two sets of U.S tariff lines.

The first set contains 818 lines of the original 1,333 lines that were included on the proposed list published on April 6.  These lines cover approximately $34 billion worth of imports from China.  USTR has determined to impose an additional duty of 25 percent on these 818 product lines after having sought and received views from the public and advice from the appropriate trade advisory committees.  Customs and Border Protection will begin to collect the additional duties on July 6,2018.

The second set contains 284 proposed tariff lines identified by the interagency Section 301 Committee as benefiting from Chinese industrial policies, including the “Made in China 2025” industrial policy.  These 284 lines, which cover approximately $16 billion worth of imports from China, will undergo further review in a public notice and comment process, including a public hearing.  After completion of this process, USTR will issue a final determination on the products from this list that would be subject to the additional duties.

The HTS lists can be found in this link ( click first/second set)

https://ustr.gov/about-us/policy-offices/press-office/press-releases/2018/june/ustr-issues-tariffs-chinese-products

USPTI Monthly Update June 5, 2018

Below please find several articles outling the proposed increases in bunker as well as scheduled general rate increases. Additional please note the update/changes for China Customs Advanced Manifest,

 

The price of oil continues to escalate carriers are prepared to pass the increases on to the account of the cargo. With an anticipated peak season in the near future carrier are also filing general rate increases. It should be noted that in many cases the bunker and increases will apply to service contracts thereby increasing the base rates on all cargoes.

 

USPTI continues an open dialogue with our core carriers to insure we are able to deliver reliable quality service at market driven rates. USPTI anticipates the market to be relatively robust for the next 60 to 90 days and thus advise clients to potentially anticipate cost increases.

 

Please insure you are compliant with China Customs Advanced Manifest requirements

 

Our commitment to our clients is to develop a long term relationship of service based on service, integrity and honesty.

 

Thank you for your support and please feel free to contact your USPTI professional with any questions or concerns.

USPTI Market Update April/May 2018

Over the past several years the landscape of international ocean carriers has changed dramatically. Mergers, acquisitions and bankruptcy combined with ocean carrier alliances restructurings have been at the fore front of international trading news. Some of the changes are:  A brief summary of some of the carrier activities is as follows:

  1. COSCO acquires OOCL
  2. COSCO and China Shipping merge
  3. APL is acquired by CMA/CGM
  4. Hapag Lloyd and United Arab Shipping merge
  5. Hanjin files for bankruptcy
  6. NYK, MOL and K Line new joint venture combining the three companies liner operations into a new organization (ONE)
  7. Maersk acquires Hamburg Sud

Market share of top 4 carriers ( Maersk Line, CMA/CGM/APL, Med Shippings and COSCO/China Shipping after takeover of OOCL) is approximately 54% of global capacity.  The container shipping industry has “officially” become an oligopoly.

As we move forward with our core carriers on anew Trans-Pacific service contracts one should note that the fight for market share is going to continue, there is still a significant amount of new vessel supply that is coming into the market over the next two years. Vigorous competition among carriers will continue with carriers protecting and attempting to increase market share at the expense of profit.

To date carriers have had limited success in implementing increase but one can anticipate that as we move into the historical peak season cost will increase consistent with trading conditions. USPTI will continue to work with our carrier base to insure our clients od quality reliable service at market driven rates.

The carrier industry is historically a supply and demand business whereas rates rise when cargo is readily available and decline when trading conditions are poor. The jury is still out on future trading conditions.   Globalization, protectionism, politics and general economic conditions are all impacting the perception and forecasted volume in the Trans-Pacific import market. Currently the impact of the recently announced China trade sanctions are unknown.

One can anticipate market rates to remain somewhat volatile in 2018. Ocean carriers will continue to adjust rates based on trading conditions and volume.

Although the alliance have been implemented the full impact of the new alliance will not occur until May 2018 and thus the potential for service disruptions will exist.  USPTI opines the disruptions will be minimum.

Reduced capabilities within the US trucking segment will continue and inland delivery rates will continue to increase.

USPTI is well positioned to handle your import needs with competitive spot/market rates as well as the ability to offer long term fixed rates based on a specific volume agreement. In addition to our quality reliable ocean transportation USPTI can offer value added services including but not limited to customs clearance, ISF filings, P.O. management, warehousing and distribution, etc.

Truck Capacity Challenges in the U.S.

The U.S. Domestic & International trucking sectors are currently facing a number of challenges that are causing a significant shortage of available trucking capacity.
Those major factors which are responsible for impacting truck power capacity are as follows:

– Diminishing driver workforce / Difficulty attracting new drivers to the industry
– Limited availability of specialty drivers (HAZMAT, Tank, Refrigerated, Over-weight)
– Restrictive free time schedule / allowance at Rail Ramps
– Tightening truck regulatory requirements – New ELD (Electronic Logging Device) rule taking effect on Dec. 18, 2017, which will strictly limit Hours of Service.
– Growing operational costs for Trucking companies

As the truck power capacity shortage is expected to worsen through the coming months, it may become increasingly difficult for USPTI to pick-up / deliver loads in a timely fashion.
Please allow for additional lead time enabling us to arrange for intermodal pick-ups and deliveries. We continue to work with our inland carriers and will do all that is possible to comply with your requirements but wanted you to be aware of the prevailing operational constraints.
Please contact your USPTI representative with any questions you may have.