Air Updates
• Air Freight Capacity Crunch from Asia
Members are reporting delays and backlogs from major Asian airports to North America, indicating capacity issues. “For example, AF/KLM Cargo recently announced that is has pulled its twice weekly freighter service from the Shanghai market severely impacting lift (eBulletin Oct. 8).” This decrease in capacity has been reflected in sharp increases in rates, in some cases as high as 50% over the July to mid-September period. A number of factors have contributed to the rate increase and growing backlogs. The reduction in capacity is attributed to sluggish summer performance especially with freighters to USA; orders delayed by buyers resulting in a modal switch from ocean to air freight so goods are available for the Fall and Christmas sales; uncertainty of the market and retail sales. In the USA especially, where many companies are reluctant to build up inventory as cash and credit liquidity continues to be compromised, market uncertainty is thought to contribute to the spike in air cargo demand. Some Members have also noted a sharp increase in the number of airfreight shipments and tonnage, certainly in the last 2 weeks of September which is expected to remain at least until the end of October. The spike is also attributed to the Chinese week-long holiday lasting from October 1 through October 8.
Some airlines of course have been taking advantage of tightening cargo capacity from China to North America and Europe, to implement rate increases. A decrease in lift combined with a spike in demand would most certainly contribute towards backlogs, delays and price increases from China, Hong Kong and Taiwan over the last few weeks. Whether this is a short lived peak or the beginning of a sustainable recovery in a battered market remains to be seen.
• Carriers Ready for Strike in Puerto Rico
Ocean carriers in the Puerto Rico domestic trade anticipate business as usual on Thursday despite a call by labor unions for a one-day general strike on the island reports the Journal of Commerce. Labor leaders are predicting that some 100,000 workers will walk out to protest the layoff of approximately 17,000 government workers on Sept. 25. Officials with Horizon Lines and Crowley Liner Services expect little or no disruption. They expect a slow day because protesters may delay traffic and keep some trucks from reaching the terminal.
Canadian - Business - Government
• Articles of Interest for Members in the Canadian Press
Currency's Climb Alarms Exporters - The Toronto Star reports that the dollar's flight back to par has Canadian manufacturers on the edge of their seats. A strong loonie makes exports more expensive in foreign markets, hurting Canadian firms' ability to compete. Read the full article at: http://www.thestar.com/business/article/709768--currency-s-climb-alarms-exporters
Feds Give $50 Million to Improve Traffic Flow at Vancouver City Ports - The Vancouver sun reports that the federal government is providing almost $50 million to make truck and train traffic run more smoothly at Vancouver's ports. Read the full article at: Vancouver Sun
• Canada's International Trade in Services, 2007 and 2008
Statistics Canada reported that the services trade deficit increased $3.5 billion to a record $22.5 billion in 2008, mostly as a result of higher payments for travel and transportation services. Detailed data on international trade in services for 2007 and 2008 is now available. Data by country, geographical and economic areas for commercial services, travel, transportation and government services are now available up to 2007. Imports and exports of commercial services by affiliation and by industrial sector based on the North American Industrial Classification System have also been updated up to 2007. Full details available at:
http://www.statcan.gc.ca/daily-quotidien/091013/dq091013b-eng.htm
U.S. Updates - Business - Government
• How to Request Importer Confidentiality When Importing via US Ports
Members’ customers should be made aware that for goods arriving in the U.S.A. via marine ports, importer data and potentially confidential commercial information is taken from the manifest data and made public through reports such as the Piers Report. If Canadian cargo is FROB (Freight Remaining on Board), or in a container arriving in North America via a US port, the Canadian commercial data is also publicly available through these reports. If Canadian importers wish to remain private there is a means to so - they can request importer confidentiality. CIFFA learned ‘how companies can request importer confidentiality’ from one of the tradeshow participants at the September FIATA World Congress in Geneva and share it here. Members are encouraged to share with their customers.
Importer names on entry documents are confidential and U.S. Customs and Border Protection (CBP) does not disclose names of importers to the public. The privacy statute, 19 CFR 103.31 (d), however, allows the media to collect manifest data at every U.S. port of entry. Reporters collect and publish names of importers from vessel manifest data unless an importer/shipper requests confidentiality.
Importers can request confidentiality for 2 years by writing the Privacy Branch, 799 Ninth St., N.W., Fifth Floor Mint Annex, Washington, DC 20229. After 2 years, the request can be renewed. U.S. CBP is working on an electronic method for submitting this request, but it is not high on the priority list for CBP. Members should be guided accordingly.
