Author Archives: just2bruce

US Customs checks every e-commerce parcel

Posted on June 2, 2024 | Leave a comment

Air freight from the Far East to the US is slowing up because US Customs is detaining cargo to check every e-commerce parcel. That’s because a lot of drugs and fentanyl-manufacturing equipment has been discovered in shipments of smaller e-commerce packages, mostly from China.

The de minimis rule, which says that packages of value less than $800 and smaller size are subject to different import rules, is a loophole drug paraphernalia shippers are exploiting, and Customs is trying to close it.

The enhanced inspections are slowing down package deliveries. Carriers are complaining and shippers too.

I think they should shut up and follow the rules for qualifying shipments, and help with the detection and prevention of illegal transports. Fentanyl alone, according to the article, is responsible for over 100,000 deaths in the US per year.

Everyone in the e-commerce supply chain has a responsibility to stand up and follow the rules. They need to know their customers and suppliers, and their customers and suppliers. Make sure they aren’t doing anything illegal. That’s a basic tenet of sustainability guidelines.

This Freightwaves-Thompson-Reuters webinar explains a lot about how to interact with US Customs. Do your due diligence, and keep the records handy. Start taking responsibility for who you are dealing with.

By Alex Lennane  31/05/2024

https://theloadstar.com/transpac-ecommerce-freighters-on-pause-as-us-customs-checks-every-parcel/

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Posted in Air, Leadership, Logistics, Supply Chains

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Mexico-to-US intermodal rail service

Posted on May 26, 2024 | Leave a comment

DP World, the international port container terminal operator, is beginning a new rail service from Mexico to the US for automobiles. It will use 53-foot containers to move the cars by truck or rail. That makes the containers compatible with the standard size container used in the US and Mexico as well, rather than the 40-foot ocean containers. That eliminates a need to transload for US road transport.

It’s a good idea. Large quantities of cars are made in Mexico for the US market. The business is growing, because some automotive components made in China face trade barriers when ocean shipped directly to the US.

Intermodal transport by rail over long distances will reduce emissions considerably. A properly engineered service could compete in travel time with road haulage to a distribution point.

Railroads have notorious problems with reliability of service; they have trouble predicting when arrival may occur. According to rail experts, this is largely due to delays that occur in switching yards, which can be unpredictable in length. And when one stopover in a yard is delayed so the next outbound train is missed, days can be added to transit times.

However, auto transport in containers like this has advantages.

First, at the destinations, cargo owners have some buffer storage, so delayed delivery is seldom critical to business.

Second, the container cars can be mixed and matched on trains, so if some are ready, they can make the train for the next leg; others can wait for the next train. All the containers in the original train needn’t go together. My rail expert thinks this ability to make shorter trains is key to making rail transport more reliable and yard performance more efficient.

Third, intermodal transport of containers has been shown to reduce emissions over individual container transport by truck. That’s important for many shippers today, due to public companies’ need to report Scope 3 emissions.

Finally, there’s a growing demand for car transport from Mexico. The country is proving to be a dependable place to locate auto factories, with adequate labor supply and manufacturing knowledge. There should be plenty of business for DP World.

Noi Mahoney Tuesday, May 21, 2024

https://www.freightwaves.com/news/dp-world-launches-mexico-to-us-intermodal-rail-service

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Posted in Logistics, Rail, Supply Chains

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Dark Fleets and Flag States

Posted on May 23, 2024 | Leave a comment

It’s no secret that flag states are a weak point in maritime standards and regulations enforcement. Shipowners can easily circumvent rules by reflagging to a state that is more interested in the revenue from fees than in enforcement. And there are lots of them.

This article paints a darker picture than we have heard of– outright bribery of flag states. The motivation is to skirt sanctions of Russian entities and other a few other countries such as Iran.

According to the article, the Paris Memorandum of Understanding on Port State Control (Paris MoU) has released details of how states are trying to allow their ships to avoid detentions for violation of sanctions. One mechanism was to make bilateral agreements with port states.

I don’t quite see how the bribery angle works, though.

But with dark trade increasing, there’s no question that it would be worthwhile for shipowners to bribe flag states to register old and poorly maintained tankers. And most of those would find their way into the petroleum trade to Asia from Russia.

Dark fleet vessels engage in tactics like dangerous ship-to-ship transfers and AIS masking, which can allow oil to move without being affected by the sanction rules.

I hope the maritime authorities, such as the IMO and P&I clubs, will come up with improved procedures to stop unsafe practices.

Sam Chambers May 22, 2024

https://splash247.com/dark-fleet-registers-seen-bribing-flag-states-to-avoid-detentions-paris-mou/

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Posted in Logistics, Shipping

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