Previously Reported Phoenix Office Closings for Lunar New Year Holidays
China – February 6-12
Hong Kong – 7-9
Indonesia and Singapore – 7- 8
South Korea – 6- 8
Taiwan – 6-11
Vietnam Agent – 6 – 10
Cargo will not move during the holidays, so plan accordingly.

Customs rejects ABI entries due to insufficient continuous bond amounts.  Customs is reviewing all importers’ bonds to ensure the amount meets the criteria set forth in the regulations.  If the bond does not cover what has been imported, a single entry bond will need to be issued on every shipment awaiting clearance until a new continuous bond is in effect. Ensure any correspondence received from Customs is handled immediately to avoid this possibly happening to your company.

US Export Container Equipment and Space Shortage – Various industry publications and carrier notices have recently referenced the lack of container availability and vessel space for US export shipments. Three key factors have contributed to this frustrating predicament:

1. Last year several carriers cut their US inland distribution services, thereby reducing the number of containers available for export shipments; especially in central USA.
2. Last year several carriers switched their vessel routes away from the USA to be used on their Asia-Europe and intra-Asia routes.
3. The weak dollar increased demand for export shipments.

The current situation is forcing shippers to make their bookings four to six weeks in advance on some routes. And even if containers are available, the carriers may “roll” or leave the container in port terminals for three or four sailings before loading the container. Carrier rate increases and fuel surcharge increase are not helping things either (See recent Phoenix advisories posted to our website or contact your local office for further details on these increases).  Until things change, we encourage you to work with your forwarder to find the most optimal solution to move your cargo, expect to book early and be flexible, if you can.

SoCal ports pass new $15-per-TEU container tax – American Shipper - Southern California port officials approved a $15-per-TEU tax on all containers moving in and out of the ports of Long Beach and Los Angeles, set to take effect Jan. 1, 2009.  The vote follows less than a month after the two boards approved a $35-per-TEU tax. Adding to the already existing $50-per-TEU PierPass gate fee, the two recent taxes raise the total additional costs for a TEU moving through the two ports to $100. Later this year, state Sen. Alan Lowenthal, D-Long Beach, is expected to reintroduce a proposed $30-per-TEU tax on container moving through Long Beach, Los Angeles and Oakland. Gov. Arnold Schwarzenegger, who vetoed an earlier version of the bill, recently said he now supports it. The two ports are reportedly also considering a further $11-per-TEU container tax that will pay for goods movement infrastructure projects outside of the two ports, such as the Inland Empire.

Cargo could be hit by British Airways strike vote – JOC -If BA’s pilots vote for a strike, it will be their first walk-out since 1980 and will affect both passenger and cargo operations at Europe’s third-largest airline. The earliest a protest could begin is late February.

Recession likely underway, says Global insight – Florida Shipper - There is a 60-percent chance a “real recession” is underway, Robert West the director of maritime services for consultant Global Insight told a gathering of maritime industry leaders Wednesday. West predicted that the declining dollar will increase exports by 6.6 percent in 2008 while imports will increase 4.4 percent. West said that even without the current economic instability the United States was a less important player on the world stage as China and the rest of Asia extend trade relationships with Latin America and the Caribbean. West said Mexican and Caribbean transshipment terminals are already forming “the Caribbean triangle” where larger container ships are most likely to call to shift cargo to smaller feeder ships calling Gulf and East Coast ports even before the Panama Canal gets its new, larger channel in 2014. West also said Global Insight expects manufacturing shifts to India and Vietnam that will increase shipments to East Coast ports through the Suez Canal.

If economy slows, don't expect container rate bargains – American Shipper - Don't expect to see carriers slashing freight rates to fill their ships this year if the U.S. economy enters a recession. "Supply and demand in 2008 is not really relevant -- the supply side will be tuned to what the economic conditions can support,” said Ron Widdows, chief executive officer of APL Ltd. "You are going to see rates increase in the transpacific. That the U.S. economy, the stock market, and some of my customers are not faring well economically will not be relevant. The underlying costs are too high. Rates are going to go up and bunker recoveries are going to increase.”

FEFC lines lifting United Kingdom congestion charge – American Shipper - The Far Eastern Freight Conference lines have suspended their $145-per-TEU congestion charge for westbound cargo calling at ports in the United Kingdom.

Customs proposes change in valuation rule – JOC - A proposed change in rules by Customs and Border Protection could result in importers paying higher duties for goods they purchase through multi-sale transactions overseas. The proposed “Sold for Exportation to the United States” rule would eliminate “first sale” as the basis for valuation, for example, the price a foreign intermediary pays a manufacturer, before it marks up the goods for sale and export to the U.S. Instead, importers would base valuation on the transaction value of the goods, or the last price paid before import. Customs has set a March 24 deadline for public comment. A link to the proposed rule can be found in the Federal Register Watch.

Kenya ’s Mombasa port capacity recently surpassed 13750 TEUS while six vessels awaited discharge. The port advised they could only evacuate 36 TEUS per day but hoped to soon move 500 TEUS per week. Many containers have been there for months, and the outlook is that there will be a very long cargo delivery delay before things improve. 

DP in Talks to Sell DHL – Air Cargo World - Deutsche Post World Net plans to sell DHL to FedEx and talks are underway, according to a report in the Financial Times Deutschland, which quoted sources familiar with the matter.

DB runs train from China - Deutsche Bahn (DB) has announced it is trialing a rail freight service between Beijing and Hamburg. A train loaded with containers left the Chinese capital at 15:45 local time on 9 January, to cover the 10,000 kms to Germany.  DB hoped it would complete the journey in less than 20 days. DB is working with other national rail companies on the project and said it wanted to create a "Eurasian Land Bridge" as an alternative to ocean and airfreight. 

Our summary articles are compiled from a number of public sources that, to the best of Phoenix’s knowledge, are true and correct. In the event any information provided is erroneous, Phoenix International Freight Services, Ltd. accepts no liability or responsibility.