Freight Market Update: October 23, 2019
Ocean and air freight rates and trends; customs and trade industry news for the week of October 23, 2019.
Flexport makes shipping your cargo transparent, reliable, and affordable
Want to receive our weekly Market Update via email? Subscribe here!
Ocean Freight Market Update
Air Freight Market Update
Freight Market News
5G Promises Big Efficiency Gains — For Those Who Are Ready With the advent of 5G networks, there’s big excitement about the potential to transform the supply chain. As Supply Chain Dive reports, those who are ready to take advantage of the new mobile network standard, will be able to harness its power to track microchip-size items, drive vehicle-to-vehicle communication, and deliver augmented reality apps that guide pickers in the warehouse. Riding the wave of 5G will require advance planning and strategy, especially with regard to managing and maintaining explosive volumes of data.
Tankers Deprioritize IMO 2020 Efforts to Capitalize on High Rates
The looming deadline for IMO 2020 has many in the shipping industry retrofitting current operations to ensure they are compliant with the pending regulations to reduce carbon emissions. However, some are deferring those efforts to seize the opportunity to cash in on an unexpected surge in freight rates, reports Hellenic Shipping News.
Customs and Trade Updates
Section 301 List 4 Exclusion Request Portal The USTR will be opening a portal between October 31st, 2019 through January 31st, 2020 for importers to file exclusion requests on Chinese goods—particularly those subject to the Section 301 list 4a rate of 15%. Like the list 3 exclusion process, importers will need to file claims through the portal with details about the item, including sourcing options and other information. The application process is scheduled to be published on the Federal Register site later this week.
WTO Addressing Rules of Origin with ITC and WCO The World Trade Organization (WTO) formally joined to collaborate with the International Trade Commission and the World Customs Organization to assist in strengthening the Rules of Origin Facilitator. WTO will help keep the tool as useful and up to date as possible for members of the trade community. This is a great free tool for importers to learn the requirements for a given commodity to qualify for a free trade agreement.
IPR Infringement Regulation Proposed Change Customs and Border Protection (CBP) is working to simplify how they handle suspected copyright violations. In the Federal Register notice, they added language to re-define "piratical articles" to be more clear and fair to the intellectual property rights owner. The changes will empower CBP personnel with more internal guidelines to assist them with enforcement and detainment. There are also numerous proposed language changes to 19 CFR Part 133.
For a roundup of tariff-related news, read our Tariff Insider.