Freight Market Update: September 11, 2019
Ocean and air freight rates and trends; trucking and customs news for the week of September 11, 2019.
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Ocean Freight Market Updates
Ongoing Trade Wars Impacting Airfreight
Research has shown that demand for airfreight decreased more than 3% year-over-year as of July 2019, while capacity increased by more than 2.5% over the same time period. The International Air Transportation Association attributes these changes to ongoing global trade conflicts, most notably between the United States and China.
United States Tariffs Policy Set to Potentially Impact Ally Countries
While president Trump’s trade policies continue to cause ripples across the globe, their impacts may extend beyond the trade war with China. As reported by the Associated Press, the Trump administration’s next tariff targets may be U.S. allies in the EU and North America.
Air Freight Market Update
Customs and Trade Updates
Discussions For India to Regain GSP Designation
The USTR has held talks with India's Commerce and Industry Minister Piyush Goyal on regaining Generalized System of Preference benefits. The possible deal hinges on the Indian government pulling back on tariffs for agricultural products that were put in place when Section 232 tariffs on steel and aluminum were placed on Indian exports. There likely wouldn't be a pullback on the Section 232 tariffs, but reducing the tariffs imposed on agricultural goods would be the first step to a possible reinstatement. The dairy industry was one of the main proponents to getting India removed from GSP and they will continue to oppose it until there is increased dairy access to India.
IPR Disclosures for Abandoned Articles
CBP proposed a new rule through a Federal Register Notice relating to IPR theft for articles that were abandoned. Currently, the owner of a trademark can review certain types of information provided from CBP on seized articles to identify if it bears counterfeit marks. The current rule doesn't help the trademark owners for goods that are voluntarily abandoned. With the large influx of low-value shipments from e-commerce, the proposed rule would give the rights holders more oversight and insights into the counterfeit goods origin, manufacturer, importer, and exporter. The comment period is open until October 28th, 2019.
For a roundup of tariff-related news, read our Tariff Insider.