Well we know for sure the PMA and ILWU are discussing the west coast labor contract.
Because now they are fighting. ILWU Local 13 workers have shut down terminal operations in LA/LB during lunch and dinner breaks. Terminal operators want to stagger breaks so pickups and drop-offs can continue during meals. The lack of a contract makes such disputes harder to resolve.
TikTok may become the next victim of deteriorating U.S.-China relations. As the saber-rattling continues between the two countries, the CEO of TikTok testified in Washington to try and assuage Congress that TikTok is not a security risk for U.S. users.
Rising interest rates that were intended to quell inflation upended the operation of a number of banks in the United States and Europe. Markets have largely recovered from the initial shock but fears abound that additional increases in interest rates may cause more bank failures.
Another sign of economic uncertainty around the globe – pirate activity seems to be on the rise again.
West Coast dockworkers have highlighted one risk of protracted contract negotiations: the dispute resolution procedures in the last contract no longer apply. So when ILWU Local 13 decided last month they didn’t want to stagger breaks anymore, terminal operations ground to a halt at the nation’s largest port complex in Los Angeles and Long Beach.
The Pacific Maritime Association (PMA) has accused the International Longshore and Warehouse Union (ILWU) of disrupting operations by taking their lunch break all at the same time between 12 and 1 p.m. on the first shift, and 10 p.m. and 11 p.m. on the second. The ‘agreement’ that provided for staggered lunch and dinner breaks to keep cargo moving expired almost two years ago, and without it there is no set method to resolve such matters.
That leaves importers wondering what other types of disruptive actions could interrupt cargo flow through the west coast until a contract is in place.
The PMA said the actions are causing “significant delays” in San Diego Bay. Yusen Terminals LLC CEO Alan McCorkle said the meal-time stoppage “causes a longer truck queue and delays to the trucking community.”
The ILWU has denied the accusations, stating that dockworkers are working every day, according to their agreements with the PMA, and that trucks can form lines for many reasons.
This disruption comes as cargo volumes dropped sharply at the Southern California ports from peak levels a year ago, and the threat of union unrest has spurred retailers, manufacturers, and other importers to avoid potential shipping snarls by diverting goods to East and Gulf Coasts.
Although only one chapter of the International Longshore and Warehouse Union is engaged in this particular action, the move, in the middle of negotiations, raised concerns of further port disruption.
After the recent implementation of CBP's Uyghur Forced Labor Prevention Act (UFLPA) Region Alert, ISCM is getting reports of an increased number of FTZ weekly estimates being flagged for intensive exam.
The new postal code validation for Chinese manufacturers is now performed on the 3461. All FTZ operators should check with their software provider or broker to see how the postal code is being reported on the 3461 to avoid filing rejections for missing zip codes.
To remove the hold on the estimate, FTZ operators must reach out to their Port. In some instances, corrective action is needed on the entry, either because a manufacturer from whom the zone is no longer sourcing is still on the estimate or goods that were long ago depleted from inventory are still appearing on the list of potential goods to be removed from the zone.
This is a good reminder for all FTZs to review their weekly estimates and templates used for the regular filing, including HTS/COO/MID combinations, to evaluate accuracy. If you have questions or comments about intensive hold procedures on weekly estimates, please send them to our Sr. Vice President, Melissa Irmen at Melissa.Irmen@iscm.co.
One of the most popular apps for younger Americans drew tough scrutiny last month in your Nation’s Capital.
Congress questioned the C.E.O. of TikTok for almost five hours. At the core of the questioning of course, was the video platform’s headquarters in China, and how much data about U.S. customers is shared with the Chinese government.
China opposes the request by the Biden administration for TikTok’s Chinese owner ByteDance to sell the company or face a ban. Imagine if the Chinese government insisted that American companies such as Apple and Tesla divest their Chinese subsidiaries.
The company became the latest fuel for the bonfire that is U.S.-China relations right now.
"Unfortunately for TikTok, they're the 'Chinese spy balloon' of March," Bryan Cunningham, former adviser to the White House National Security Council, told Axios.
It did not help matters that last month Chinese President Xi met with Russian President Vladimir Putin for the first time since last year's invasion of Ukraine. Then, China brokered a diplomatic deal between Saudi Arabia and Iran.
China, Russia and Iran also held a joint military drill in March, underscoring China's growing influence in the Middle East.
The intelligence community's annual worldwide threats report named China "the broadest, most active and persistent cyber espionage threat" to the U.S. government and private sector.
U.S. container import volumes dropped to pre-pandemic levels in the first quarter of 2023, especially for ports on the west coast.
East coast ports also participated in the decline this time, however.
Despite the reduction, port transit delays increased for the top West, East and Gulf Coast ports. COVID continues to be a factor and the West Coast labor situation has still not been sorted out.
February 2023 U.S. container import volumes decreased 16.2% from January 2023 to 1,734,272 TEUs.
The overall U.S. container import volume for the Top 10 ports in February 2023 was down by 296,390 TEUs versus January with all but the Port of Tacoma experiencing declines. The Port of Los Angeles showed the greatest overall container volume decrease, representing 40% of the overall decrease in TEU quantities.
Overall port transit delays in February 2023 were slightly higher compared to January 2023. The major East and Gulf Coast ports saw a transit time increase of 0.4 to 1.1 days. For all major West Coast ports, transit times increased from 0.1 to 1.0 days.
According to Freightos data, container rates on the Asia to N. America lane have dropped 40% since the end of February, and are now on par with 2019 levels.
China is still seeing widespread COVID infections since it loosened its lock-down policies. According to a report from Descartes, the Chinese population has little-to-no immunity and the impact of COVID on manufacturing supply chains could continue for quite some time.
The Inflation Reduction Act has generated a flurry of U.S. trade negotiations, as more and more countries look to capitalize on the new incentives for electric vehicle purchases.
Last month the Biden Administration announced a trade deal with Japan on the minerals used in EV batteries. The ‘free trade agreement’ will allow imports from Japan to qualify for the tax incentives in the Inflation Reduction Act.
Katherine Tai, the U.S. trade representative, signed the agreement last week.
But U.S. lawmakers had tough words for the agreement, saying that it should have been made available to Congress and the public for review and that it lacked important protections for the environment and workers.
The Inflation Reduction Act, which invests $370 billion to transition the United States to cleaner cars and energy sources, has angered some allies who were excluded from its benefits.
According to a fact sheet distributed by the Office of the United States Trade Representative late Monday, the United States and Japan promised to encourage higher labor and environmental standards for minerals that are key to powering electric vehicles, like lithium, cobalt and nickel. The countries said they would also promote more efficient use of resources and confer on how they reviewed investments from foreign entities in the sector, among other pledges.
The United States and Europe are separately negotiating a similar agreement.
The deal expands a key provision of the Inflation Reduction Act, which offers generous tax incentives for electric vehicles that are built in North America or source the material for their batteries from the United States or countries with which the United States has a free-trade agreement. The United States has free-trade agreements with 20 countries but not the European Union or Japan, and foreign allies have complained that the legislation will disadvantage their companies and lure investment away from them.
But since the Inflation Reduction Act does not technically define what constitutes a “free-trade agreement,” American officials have found what they believe to be a workaround. They are arguing that countries will be able to meet the requirement by signing a more limited trade deal instead. Later this week, the Treasury Department is expected to issue a proposed rule clarifying the law’s provisions.
President Biden and the European Commission president, Ursula von der Leyen, announced after a meeting earlier this month that their governments were pursuing a similar deal. But European officials said that arrangement could take more time to finalize, since the European Union must submit such agreements to its member states for their approval.
In a statement, Representative Richard E. Neal of Massachusetts, the Democratic ranking member of the House Ways and Means Committee, and Senator Ron Wyden, Democrat of Oregon and the chairman of the Senate Finance Committee, called the agreement “unacceptable.”
“Without enforceable environmental or labor protections, the administration abandons worker-centric trade policy and jeopardizes our climate work by opening the door for another environmental catastrophe,” wrote the lawmakers, who are the two most powerful Democrats in Congress on trade issues. Ouch.
“Agreements should be developed transparently and made available to the public for meaningful review well before signing,” they added, “not after the ink is already dry.”
Pirates have long been a risk in the Gulf of Guinea, a major west-African shipping lane stretching from Senegal to Angola.
But the region, which sees a lot of traffic from oil tankers, had seen a lull in activity recently.
According to a report by The Maritime Information Cooperation and Awareness Center (MICA), only three ships were attacked in 2022 compared to 26 in 2019.
However late last month pirates boarded a Danish-owned oil tanker there. The vessel has since been found abandoned, but several members of the 16-person crew of the 450-foot Monjasa Reformer remain missing.
The Liberian-flagged oil and chemicals tanker was boarded by five armed people 140 miles west of the Republic of Congo’s Port Pointe-Noire, the ship’s owner said.
The ship’s owner said the crew had sought refuge in the tanker's secure room when the pirates boarded, "in accordance with the onboard anti-piracy emergency protocol."
According to an official at the port of Pointe-Noire, the ship had arrived in Congolese waters on March 18th and left on March 22nd, and was in international waters when it was attacked.
The rescued crew members are all in good health, and no damage was reported to the ship or its cargo.
Well we know for sure the PMA and ILWU are discussing the west coast labor contract.
Because now they are fighting. ILWU Local 13 workers have shut down terminal operations in LA/LB during lunch and dinner breaks. Terminal operators want to stagger breaks so pickups and drop-offs can continue during meals. The lack of a contract makes such disputes harder to resolve.
Tik Tok may become the next victim of deteriorating U.S.-China relations. As the saber-rattling continues between the two countries, the CEO of Tik-Tok testified in Washington to try and assuage Congress that Tik Tok is not a security risk for U.S. users.
Rising interest rates that were intended to quell inflation upended the operation of a number of banks in the United States and Europe. Markets have largely recovered from the initial shock but fears abound that additional increases in interest rates may cause more bank failures. Another sign of economic uncertainty around the globe – pirate activity seems to be on the rise again.