/ By tjchinafreight ivy / Shipping

U.S.-West Port labor negotiations are imminent

U.S.-West Port labor negotiations are imminent
U.S.-West Port labor negotiations are imminent

Labor negotiations are imminent, and the Pacific Maritime Association (PMA), which represents shipping companies and terminal operators, has released a research report that counts the benefits of port automation, but the trade unions (ILWU, International Longshore and Warehouse Union, American International The Terminals and Warehousing Alliance) argues that productivity gains from port automation have exacerbated employment imbalances.

The study, commissioned by PMA and conducted by UC Berkeley public policy professor Michael Nacht, was released on May 2. According to Michael Nacht and Larry Henry, founder of Container Trac, automation is good for the competitiveness and growth of ports on the U.S. West Coast. At 13 container terminals in the Ports of Los Angeles and Long Beach, automation benefits trade, the environment and workers, providing more jobs, the study said.

On the employee side, ILWU workers have increased their paid hours at automated terminals in Los Angeles and Long Beach by 31.5 percent since 2015, the last year of the transition to automated operations, more than double the rate at non-automated terminals, the data shows. ILWU's registered labor force in Los Angeles and Long Beach grew 11.2 percent, compared with 8.4 percent at the other 27 West Coast ports.

In trade, automation has halved container handling time since 2019. Terminals can handle 44 percent more containers per acre than non-automated terminals because automated vehicles and cranes can stack containers higher and denser and transport them more efficiently by trucks and trains. Michael Nacht said: “Higher terminal throughput can provide more port-related jobs and increase employment across the supply chain. If the trend of automation is not kept up, cargo will be diverted to other ports, resulting in terminal and Job losses across the region.” PMA chief executive Jim McKenna said in an interview last month: “The Covid-19 pandemic and the surge in cargo have proven that automated terminals are much more efficient than traditional terminals. As these terminals With a lot of cargo being handled, they actually provide more jobs for dockworkers as well.”

However, these conclusions were not endorsed by the ILWU, and union representative Frank Ponce De Leon responded that the report did not take into account workers who lost their jobs due to the introduction of automated machinery, and that the increase in container throughput at automated terminals was also reflected in the apparent decline in throughput at other terminals. costly and will result in job losses.

The PMA has long campaigned for the introduction of automation in the terminals but has been criticised by the international terminal ILWU. Negotiations between the PMA and the ILWU will take place on May 12 to develop new labor contracts for the 22,000 West Coast dockworkers due July 1.

/ By tjchinafreight ivy / Shipping

How to Calculate Multimodal Import Dutiable Value

How to Calculate Multimodal Import Dutiable Value
How to Calculate Multimodal Import Dutiable Value

The concept of international multimodal transport

The United Nations Convention on International Multimodal Transport of Goods defines international multimodal transport as, in accordance with the international multimodal transport contract, at least two different modes of transport, the multimodal transport operator takes over the goods from the territory of a country. Carriage of goods to a designated delivery point within another country. The "Maritime Law of the People's Republic of China" stipulates that domestic multimodal transport is: there must be a way of shipping. For international multimodal transport goods, the carrier issues a full transport document, also known as a multimodal transport bill of lading.

With the continuous development of China's economy, more and more goods enter my country's inland cities by multimodal transport. Inland transport has become an important component of multimodal transport, and inland freight also exists as part of the entire freight rate. . In reality, there are confusions about whether the freight in the inland section of multimodal transport is deducted and how to deduct it.

Is the freight for inland section related to the import dutiable value?

According to Article 3 of the "Guidelines for Valuation of Imported Maritime Transportation and Related Expenses" (hereinafter referred to as the "Guidelines"), the inclusion of transportation and related expenses into the dutiable value of imported goods shall satisfy the following three conditions: first, it is related to transportation; second It should be calculated until the goods arrive at the import point within the territory of the People's Republic of China before unloading; the third is actually paid by the buyer and should be paid.

According to the nature of the freight for the inland section of the import transit, the above conditions are marked one by one: First, the freight of the inland section is indeed related to transportation, and the conditions are met; second, the conditions are not met before the loading and unloading at the domestic import point - take the sea port as an example , when the trunk line means of transport enters the country (the demarcation point of "before unloading"), that is, the branch line transportation from the sea port to the inland point, after the loading and unloading; the third is the actual payment by the buyer, which should be paid, which needs to be based on specific trade terms. to judge.

According to Article 5 of the "Guidelines", there are two conditions for the identification before the arrival at the import location within the territory of the People's Republic of China. The place where the imported goods leave the means of transport for the first time; the other is before unloading, which refers to the beginning of the loading and unloading of goods.

The key point of the identification condition 1 is: the means of transport for international voyages and the imported goods leave the means of transport for the first time, which can be judged that the inland port where the goods are transported in the inland segment does not meet the definition of "input location"; the second identification condition mentions Pre-loading and unloading refers to the loading and unloading of goods transported in the inland section before the act of loading and unloading (international navigation means of transport), which does not meet the definition.

To sum up, according to Articles 3 and 5 of the Guidelines, the freight for the inland section is not included in the dutiable value.

/ By tjchinafreight ivy / Shipping

Saverys family blocks Euronav and frontline merger

The Saverys family has invested more than 33 million shares in Euronav in order to win proxies at Euronav's annual general meeting on May 19 to block the merger of Euronav and frontline.

As previously reported by Xinde Maritime.com, the ship king Frederickson hopes that Euronav and frontline will merge to create the largest oil tanker company in history, so as to counter market risks and expand the market influence of the fleet.

The Saverys family goes all out to build up their holdings

Saverys family blocks Euronav and frontline merger
Saverys family blocks Euronav and frontline merger

But Euronav's largest shareholder, the Saverys family, seems to have objections to this. It is reported that the Saverys family prefers Euronav to develop towards a green fleet, either not to merge or to merge with other companies. However, we can see from Euronav's investment ratio that although the Saverys family is the largest shareholder, its share of shares is far from the point where the family has a full say in the board of directors.

So, recently, the Saverys family used their other company, Compagnie Maritime Belge (CMB), to increase its outstanding shares in Euronav to more than 16%.

Specifically, CMB's latest purchase of 33.25 million shares brought its share in Euronav to 16.49%, a significant increase from the 14.39% reported on April 14 and the 13.22% held earlier this month. CMB's stake also significantly exceeds Fredrickson's roughly 10 percent stake.

CMB chief executive Alexander Saverys is trying his best to persuade Euronav's shareholders to reject the merger with Frontline and to agree to a merger of Euronav and CMB.

In addition to this, the Saverys family have also publicly stated that they will seek to replace Euronav's board of directors, currently led by De Stoop, as the likes of De Stoop are on Frontline's side.

According to the latest CMB filing, the company will nominate Ludovic Saverys, Alexander's younger brother, to Euronav's board of directors. Ludovic is currently CMB's Chief Financial Officer. Two other CMB directors, Patrick De Brabandere and Bjarte Boe, are also among the board members to be elected.

In a letter to Euronav on Tuesday, the Saverys brothers said: "Euronav is at an important crossroads in its development, and as the world's largest independent crude oil tanker company has the opportunity and responsibility to think carefully about its long-term future and industry before setting its course. future. By proposing the appointment of three additional supervisory board members, we hope to enable the company to discuss various strategic options openly, comprehensively and fairly, taking into account the interests of all stakeholders.”

Approaching the right to gain "negative control"

As mentioned above, the Saverys family already owns about 16.5% of Euronav, which means that the family is getting close to negative control of the company - the stake must reach 25%.

Jørgen Lian, senior analyst at DNB Markets, said: “We can only speculate, but they (the Saverys family) are getting more and more shares, approaching 25%, which may mean they will gain negative control. But at the same time I also Think it's going to be more and more difficult for them to get more shares (to buy additional shares)."

According to the Financial Times, Alexander Saverys has told the outlet that he is working on a plan to block the announced merger of Euroav and Frontline. He said he "has more than one way".

/ By tjchinafreight ivy / Shipping

Greece’s Almi Marine returns to the newbuilding market

Greece's Almi Marine returns to the newbuilding market
Greece's Almi Marine returns to the newbuilding market

Greek shipowner Almi Marine has returned to the newbuilding market after 15 years, placing an order for 3 bulk carriers at Dalian COSCO Shipping Kawasaki.

It is reported that Dalian COSCO Shipping Kawasaki and Almi Marine signed a construction contract for three 64,000-dwt Ultramax bulk carriers on April 21, and the new ships will be delivered in 2024. This is the first new ship order undertaken by Dalian COSCO Shipping Kawasaki this year, and the specific price has not been announced.

It is reported that Almi Marine started negotiating with Dalian COSCO Shipping Kawasaki about 4 months ago to order new ships. The initial plan was to order 2 Ultramax ships, but then the order quantity was expanded to 3 ships. This series of ships will meet the Ship Energy Efficiency Design Index (EEDI) Stage 3 requirements.

For Almi Marine, the Dalian COSCO Shipping Kawasaki order is the company's first order for a new vessel since 2007. According to Clarksons data, Almi Marine last booked a ship in 2007, when the company placed an order with STX Marine Shipbuilding for three 57,260 dwt Handysize bulk carriers, three ships from 2010 to 2011 Year delivered.

At present, Almi Marine's fleet has 7 bulk carriers with a total capacity of about 400,000 dwt, of which the youngest is the 58,635 dwt "Sole" built in 2013, which was acquired by Almi Marine in March last year.

Clarksons data shows that at present, Dalian COSCO Shipping Kawasaki has a total of 31 orders of 3.4892 million dwt, including 11 container ships and 20 bulk carriers, and the delivery time has continued until 2025.

/ By tjchinafreight ivy / Shipping

What is Electronic Export Information (EEI)?

What is Electronic Export Information (EEI)?
What is Electronic Export Information (EEI)?

EEI is data that must be submitted through the Automated Export System (AES) for shipments from the United States to a foreign country. The filing includes information about the sender and recipient of the goods, as well as information about the exported goods. The Census Bureau uses these documents to calculate U.S. trade statistics, and Customs and Border Protection (CBP) and the Bureau of Industry and Security (BIS) use the data to help ensure compliance with U.S. export regulations.

There are various nuances regarding the EEI application. Therefore, it is important to understand how the EEI reporting requirements apply to your shipments - when you need to declare and when your shipments are exempt from these requirements.

General EEI filing requirements

The EEI must be submitted with shipments from the U.S. to foreign destinations if any of the following applies:

  • Shipping a single item or item worth more than $2,500. (Note: Goods shipped from the U.S. to Canada are exempt from this requirement.)
  • The shipment contains goods that require an export license or license, regardless of value.
  • Goods are subject to International Traffic in Arms Regulations (ITAR) (link is external), regardless of value.
  • Shipped as a self-propelled vehicle.
  • When exporting "600 Series" items, (i.e. "xY6zz" format for items on the Commercial Control List (CCL) that were previously regulated by the United States Munitions List (USML).
  • Export under license exception Strategic Trade Authorization (STA) (link is external).
  • Shipments to China, Russia and Venezuela for military end use, regardless of value or content.
  • Goods contain rough diamonds, regardless of value (HTS 7102.10, 7102.21 and 7102.31).

Who submits the EEI?

In standard export transactions, the U.S. Principal Interested Party (USPPI) is responsible for submitting the EEI through AESDirect. However, USPPI may provide its freight forwarder (or other third party) a Letter of Authorization (POA) or written statement authorizing them to prepare and submit an EEI on their behalf. (In most cases, the USPPI is the same as the exporter.)

However, in a routed export transaction, the Foreign Principal Interested Party (FPPI) must provide a POA or other written authorization to submit the EEI to the USPPI or U.S. Authorized Agent. (In most cases, the FPPI is your ultimate consignee or foreign customer.)

/ By tjchinafreight ivy / Shipping

How Certificates of Insurance Affect Your Cargo Insurance Claims

How Certificates of Insurance Affect Your Cargo Insurance Claims
How Certificates of Insurance Affect Your Cargo Insurance Claims

In the freight industry, poorly organized documentation can have a significant negative impact on the shipment of goods and increase shipping risks, costs, time and fines. Now more than ever, trucking companies are moving towards a paperless approach to document management to achieve greater efficiency and initiative and reduce risk.
Typically, large shipping companies have to deal with hundreds of documents every day for customs clearance and delivery, from bills of lading, commercial invoices and certificates of origin to cargo insurance certificates, export licenses and packing lists. If that wasn't complicated enough, shipping companies also have to deal with a multitude of contacts, from trade and logistics companies to various international agencies and authorities.

How does a certificate of insurance affect your claim?

A certificate of insurance actually grants insurance rights to another party, someone other than the purchaser of the insurance. Regarding filing a claim, it is similar to handing over a signed blank check to the other party. In the case of a letter of credit, the right to make a claim is vested in the bank providing the letter of credit. However, for exports, the purchaser of the goods is entitled to a claim.

Ultimately, this means that when a claim occurs, the claim will be paid to the assignee of the insurance certificate, not the policyholder. However, the claim will be credited to the policyholder's claims history.

Customers do not need proof of insurance if all shipments are done using a letter of credit. Instead, the bank can be named as the lender's loss payee on the policy.

The importance of managing cargo insurance certificates

Cargo insurance certificates are one of the most important documents in the shipping industry as they carry the greatest risks inherent in them. A cargo insurance certificate is a document that indicates the type and amount of insurance coverage that is valid for a given item. It is used to assure the consignee that insurance is provided to cover loss or damage to the goods in transit.

Certificates of insurance typically include the following information:

  • Conditions of Insurance Coverage
  • Transport information
  • Additional/Special Coverage Conditions
  • Instructions or Actions to Take in the Case of Loss or Damage of Goods
  • Billing agent contact information
  • LIABILITY OF CARRIER, TRUSTEE OR OTHER THIRD PARTIES

Alternatives to Certificates of Insurance

If all you need is proof that you have insurance, a letter of insurance can be issued for this purpose. In fact, these letters can be issued as general proof of insurance or to confirm that a single shipment complies with the policy.

Here are some examples of situations where a letter of insurance is sufficient:

  • Carriers often require importers and exporters to certify that they have insurance before waiving insurance premiums.
  • Clients of importers/exporters want to be sure they have an insurance policy if something goes wrong with their goods. This is typically the case if the policyholder pays the premium in the sales agreement with the importer/exporter.

If you are not expressly required to provide proof of insurance, then you may only need a letter of insurance. If your insurance provider asks if you need proof of insurance, don't say "just to be safe." This request often results in wasted time and money.

/ By tjchinafreight ivy / Shipping

What is a manufacturing certificate?

What is a manufacturing certificate?

A manufacturing certificate is a notarized or certified document that certifies that the goods ordered were manufactured by the manufacturer and are exclusively at the buyer's risk and responsibility. Suppliers of finished products use this certification to show if any changes have been made to a specified recipe or process. The revision date needs to match the date on the master file to be valid.

How to use the manufacturing certificate?

The certificate of manufacture issued by the manufacturer must be on company letterhead and include the following information. The certificate should have:

  • Manufacturer's name
  • Product name
  • Batch number
  • Item Number
  • Revision code
  • Revision date
  • Certificates in support of claims of lack of product modification
  • The name of the quality control manager performing the certification
  • Signature of the above quality control manager
  • Date signed
  • Import Approval Certificate

Manufacturing Certification

Whether someone works in a manufacturing environment or is considering a career in the field, there are many different options available for certification. General manufacturing certification is not available, instead, manufacturing certification usually falls into one of two categories. The first includes an industry-related diploma or certificate. This is given after someone has undergone detailed work experience and training in a specific industry, such as an electrician or a tool and die maker.

The other category relates to specific aspects of the wider industry. Every company that produces goods falls into this category. The training will cover details of specific parts of this process. Jobs such as logistics, quality certification, safety and health training, and engineering technicians can be found here.

/ By tjchinafreight ivy / Shipping

Brazil removes import duties on some goods

Affected by the epidemic in the past two years, Brazil's poor population has increased, the proportion of the middle class has shrunk, and the inequality between the rich and the poor has widened.

Inflation has caused the prices of basic materials in Brazil to rise again and again, and the prices of canned food, preserved food, olive oil, vegetables, beef, coffee, etc. have all continued to increase. In addition to Brasilia being the most expensive city, Salvador, Curitib and Belo Horizonte also saw very big price increases.

Wages can't keep up with inflation, and Brazilians have begun to reduce expenses, change the family diet, replace more expensive beef with chicken, sausage, cream, etc., and reduce life and entertainment activities.
In order to fight inflation and stabilize prices, Brazil recently announced a reduction in import tariffs on some commodities.

Brazil removes import duties on some goods
Brazil removes import duties on some goods

The Executive Management Committee (Gecex) of the Foreign Trade Commission (Camex) of the Brazilian Ministry of Economy announced:

1. From now until the end of this year, import taxes on seven products will be cancelled, including: ethanol (the original import tax is 18%, the same below), coffee (9%), margarine (10.8%), cheese (28%) ), pasta (14.4%), sugar (16%), soybean oil (9%).

2. From April 1 to the end of this year, the import tax rate levied on electronic products and mechanical equipment will be reduced by 10%. This measure aims to promote the purchase of equipment for industrial production and reduce the prices of some technical items. In March last year, the Brazilian government cut tariffs on capital goods and telecommunications imports by 10 percent. Overall, the cuts will be 20%.

The changes came into effect after they were published in the Brazilian Federal Official Gazette on March 23. Combining all the tax cuts, the tax cuts generated this year are around R$ 1 billion.

However, the skyrocketing sea freight has also affected the Asia-Brazil route. The current sea freight is 5.7 times higher than before the outbreak!

/ By tjchinafreight ivy / Shipping

Maersk warns container shipping market to return to normal

Maersk warns container shipping market to return to normal
Maersk warns container shipping market to return to normal

Although Maersk's first-quarter results beat expectations, the shipping giant warned that the global shipping industry may gradually return to normal in the second half of the year.

On April 26, Maersk reported financial results for the first quarter of 2022, with revenue of $19.3 billion, underlying EBITDA of $9.2 billion, and underlying EBIT of $7.9 billion. Maersk said, "The first quarter results exceeded expectations," the quarter's results were driven by the continued abnormal conditions in the ocean shipping market, compared with the first quarter of 2021, the volume fell by 7%, and the freight rate increased by 71%. Maersk said: "The strong performance stemmed from exceptional market conditions within the container shipping market, with volumes down 7% compared to the first quarter of 2021, while freight rates increased by an average of 71%."

Given the strong performance in the first quarter, Maersk expects current market conditions to continue in the second quarter and raises its full-year 2022 outlook. Maersk once again significantly raised its full-year profit forecast as last year. Maersk expects full-year 2022 actual earnings before interest, tax, depreciation and amortization (EBITDA) to be $30 billion (previously expected to be $24 billion), an increase of 25%. Actual EBIT was $24 billion (previously expected to be $19 billion) and free cash flow would exceed $19 billion (previously expected to be around $15 billion).

"The already tight supply chain situation deteriorated further in the first quarter of this year, with the Russian-Ukrainian conflict adding to uncertainty," Maersk Chief Executive Detlef Trefzger said in a statement. "The current market situation is expected to continue in the second quarter. Going down, combined with higher contracted freight rates, we expect full-year 2022 results to be stronger than previously expected."

It should be noted that, unlike last year, the shipping giant also warned that this year's container traffic may actually decline, and the Russian-Ukrainian conflict and high inflation may have adverse effects on the global economy. The current performance forecast is still based on the assumption that the marine business will return to normal in the second half of 2022. Although it continues to be optimistic about the container shipping market this year, Maersk also expressed concern about global container demand based on the decline in freight volume in the first quarter, and lowered its outlook for global container demand growth from 2-4% to -1/+1%.

The shipping industry has made record profits in recent quarters, as surging consumer demand, blockages at major global ports due to the pandemic and the recent closure of airspace following the conflict between Russia and Ukraine have kept prices up.

Clarksons data shows that there are currently 861 container ships on order, with a total capacity of 6.57 million TEU, equivalent to 26.4% of the existing fleet. The data shows that the new ships ordered by the shipping giants in large quantities last year are also about to start delivering. This means that the state of high freight rates in the container shipping market will be difficult to sustain.

/ By tjchinafreight ivy / Shipping

Hapag-Lloyd fined $822,000

Hapag-Lloyd fined $822,000
Hapag-Lloyd fined $822,000

Approved by the Federal Maritime Commission on April 22, German carrier Hapag-Lloyd has been ordered to pay a civil penalty of $822,220 for 14 violations of U.S. shipping law -- $58,730 per violation Dollar.

The FMC's Enforcement Bureau investigated a complaint from freight company Golden State Logistics that Hapag-Lloyd imposed demurrage charges on 11 containers that could not be returned in time due to lack of storage space at the terminals (LA, LB ports) .

The Bureau of Enforcement launched an investigation into whether Hapag-Lloyd’s practice of imposing demurrage fees violated the U.S. Shipping Act and found that Hapag-Lloyd either failed to provide a location for the return of equipment or even did so when assessing demurrage fees. The location does not have an appointment to return the empty box.

This is part of an ongoing dispute over demurrage and demurrage (D&D) charges in the industry. Long controversial, D&D fees have become a hot topic in the industry as more and more containers are overloaded at terminals and ports over the past two years. In response to these complaints, the FMC has become increasingly vocal about fees, recently encouraging shippers and haulage companies to alert the Commission to disputes over fees.

Hapag-Lloyd fined for detention charges and told to stop violating Shipping Act (file photo)
Hapag-Lloyd fined for detention charges and told to stop violating Shipping Act (file photo)

Liner companies believe demurrage is necessary to ensure the efficient use of very scarce containers, while other stakeholders in the supply chain have complained that due to port congestion, container returns cannot be achieved within the stipulated time. Additional costs should not be borne by the business.

The findings of this incident will support the shipper's argument that it is unfair to charge when a timely return of the container is not possible.

The FMC said: “We have been focusing on the issue of container detention and demurrage for many years, providing multiple opportunities for parties to weigh possible solutions, and in the Container Detention and Demurrage Rules provide information on the collection of containers Specific requirements for the return of demurrage charges for empty containers, but despite such efforts, Hapag-Lloyd has not been able to change its behavior or practices.”

The FMC added that evidence showed Hapag-Lloyd had not changed its policy on container detention and demurrage rules. The FMC Commission provided extensive notice and opportunity for comment prior to developing demurrage and detention rules that clearly set out the criteria for imposing detention for the return of empty boxes, and when there is documentation indicating that there is not enough appointment time to return these It is unreasonable for Hapag-Lloyd to impose demurrage charges when shipping containers.