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News / Regulatory Updates

ILWU CONTRACT NEGOTIATIONS UPDATE

The contract negotiations between the ILWU and PMA began May 10th in San Francisco. It has been posted on a few trade publications that the ILWU requested to suspend further negotiations until June 1st. The following are the key points:

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SHANGHAI / NINGBO LOCKDOWN UPDATE – 19 APRIL

The following is about our current air & ocean operations situation in the Shanghai & Ningbo area:

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NORMAL TRADE RELATIONS SUSPENDED FOR RUSSIA AND BELARUS

On April 8th, 2022, President Biden signed into law HR 7108 to remove the Permanent Normal Trade Relations (PNTR) status with Russia and Belarus. The removal of Permanent Normal Trade Relations status includes the withdrawal of “most favored nation” tariffs and will result in higher tariffs on the import of goods from Russia and Belarus.

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US – UK REACH AGREEMENT ON SECTION 232 STEEL AND ALUMINUM TARIFFS

On Tuesday March 22nd, the United Sates and the United Kingdom announced in a Joint Statement on Trade In Steel and Aluminum that the US would remove the section 232 tariffs and the UK would suspend related tariffs on US products.

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SHANGHAI WILL BE LOCKED DOWN IN TWO STAGES OVER NINE DAYS

Dear colleagues & partners,

China’s financial hub of Shanghai announced the city will lock down in two stages to carry out COVID-19 testing over a nine-day period, with the eastern side of the city under restrictions from Monday until 1 April, and the western side from 1-5 April.

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CHINA TARIFFS: REINSTATEMENT OF 352 EXCLUSIONS

On Wednesday March 23, the United States Trade Representative (USTR) office announced in a Press Release a decision to reinstate certain previously granted and extended product exclusions from the China Section 301 Tariffs.  The determination reinstates 352 of 549 eligible exclusions.  The full list can be found in the Notice of Reinstatement of Certain Exclusions: China’s Acts, Policies, and Practices

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NEW LA/LONG BEACH CLEAN TRUCK FUND RATE

Dear Noatum Customer,

As of April 1st, 2022, the Ports of Los Angeles and Long Beach will begin collecting a new Clean Truck Fund (CTF) Rate, regarding the ports goal to achieve zero-emissions drayage trucking by 2035. A $10 fee per TEU (twenty-foot equivalent unit) and an additional fee of $20 per container that exceeds 20 feet on loaded import, export, domestic and international containers being hauled by drayage trucks as they cross terminals and rail cargo moving to or off nearby rail ramps via truck.

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LOCKDOWNS SPREAD IN CHINA AS THE VIRUS SURGES IN SHANGHAI AND OVER A DOZEN PROVINCES

Downtown Shanghai heavily effected as covid out breaks surge. Museums, Theaters, and galleries closed, and refunds issued in the city of Shanghai. The majority of schools located in the inner city announced that they will be swapping to online learning as of Friday the 11th. Across China more than 100 neighborhoods have been deemed medium or high-risk danger zones, with required frequent testing and partial or complete lockdown.

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TRUCKING RATES EXPECTED TO INCREASE NATIONALLY

On Tuesday, this week, the price of diesel fuel on the CME commodity exchange rose 21.98 cents per gallon, which is the largest single day increase since early June 2008. The US Department of Energy reports that the national average price of diesel at the pump jumped $0.75 cents in the first week of March, up a total of $1.71 from one year ago.

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RUSSIA-UKRAINE WAR: IMPACT ON GLOBAL LOGISTICS

As the conflict between Russia and Ukraine grows, the operational outlook for logistics operations with these countries has been severely altered.

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