Export Update: Issues of Concern/Issues for Awareness
Brenda Barnes, PCC Export Committee Chair
- Post-Departure Filing: Post-departure filing has been grandfathered since October of 2002. Once the advanced manifest data is in, CBP intends to run some pilots of current Option-4 filers, assess the process, and then open it up again. This will also require some revisions to existing Census regulations.
- Used Self-Propelled Vehicles: Jim Swanson stated they are getting a lot closer with the pilots becoming reality for everyone. The biggest delaying factor is the imaging system. It may not be “DIS”, but it is something like it they have to do some legalize to finalize it.
- MSC Vessel MSC Gayane’s containers are being transferred to other MSC vessels since the vessel too was seized by Customs along with the containers that were carrying the drugs. MSC’s C-TPAT status is in jeopardy. What will that mean to C-TPAT shippers and the whole C-TPAT supply chain? How will that affect which carriers will have space and others won’t?
- Export Seizure: If you haven’t heard already, the first-time ever there was a Customs apprehension of narcotics going out on an export. It was meth that had been hidden in homemade speakers going out of the Port of LA. This is quite concerning because Customs is now putting together more algorithms on exports looking for narcotics. The concern I have is that may mean more stoppage of outbound cargo by Customs for physical inspection. That is why getting the post-departure filing option back on the table is critical for export commerce.
- Starting on August 6, UP Railroad will start issuing penalties for appointments not being met. This could trickle down to the ocean carriers and onto the shipper.
- Logistic issues
The biggest factor within the logistic focus is the IMO 2020 Fuel requirement kicking in on January 1, 2020. All vessels, not only container ships, will be required to burn .5% or less Sulphur content or to have scrubbers installed.
Fourth quarter of this year shipping costs due to bunker fuel add-ons will be increasing quite a bit. However, no one can confirm what those costs will be. Some carriers have formulas. Formulas could be different carrier to carrier. Some are adding set dollar amounts.