Author: Colin Smith

SE Ports Planning for Growth

The growth in SE ports is expected to continue into 2023 and beyond, as more companies look for alternatives to the West Coast for their shipping needs. According to the Journal of Commerce, the Port of Savannah handled a record-breaking cargo volume—nearly 4 million TEUs. To meet this demand, both the port and Georgia Ports Authority (GPA) are looking at ways to upgrade their infrastructure and improve operations.

In addition to Savannah’s impressive gains, other ports have also seen significant growth recently. The Port of Virginia has experienced double-digit increases year-over-year since 2019. Container volumes there increased by 22%. Similarly, in South Carolina’s Port of Charleston container volumes increased by 11%, and the Port of Jacksonville is expecting to see a 15-20% increase in cargo volume

The growth in southeast ports is being driven primarily by companies looking for an alternative to the West Coast, as well as those who want to gain access to new markets on the East Coast. In particular, Savannah is drawing attention from Southeast Asia exporters, who are increasingly using it as a gateway into the US because of its proximity to intermodal connections and its ability to quickly turn around vessels. Additionally, companies have been attracted by GPA’s commitment to environmental stewardship and responsible logistics practices.

These ports are actively courting shippers by updating infrastructure, adding employees, investing in new equipment and technologies and expanding with the future in mind. It remains to be seen whether this growth will continue now that the e-Commerce boom has slowed as consumer spending is lagging. 

No matter what challenges are on the horizon, you’re in experienced hands with Future Forwarding. We’ll get your cargo where it needs to go and help you keep your service promises. Reach out to us today to see how we can help elevate your cargo strategy. 

 

What is Dutiable?

It is incumbent on everyone engaged in trade to know policy and regulations. A lack of knowledge doesn’t mitigate liability. So what do you need to know about what’s dutiable and what’s not? What are your responsibilities when it comes to Customs values and the information you must provide?

 

There are several ways to determine import value but the most common is Transaction Value.  

 

What is Transaction Value? The transaction value of imported merchandise is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus amounts equal to: 

 

  1. The packing costs incurred by the buyer. 
  2. Any selling commission incurred by the buyer. 
  3. The value, apportioned as appropriate, of any assist. 
  4. Any royalty or license fee that the buyer is required to pay, directly or indirectly, as a condition of the sale.
  5. The proceeds of any subsequent resale, disposal, or use of the imported merchandise that accrue, directly or indirectly, to the seller.

 

These amounts (items A through E) are added only to the extent that each is not included in the price, and is based on information accurately establishing the amount. If sufficient information is not available, then the Transaction Value cannot be determined and the next basis of appraisement, in order of precedence, must be considered. 

 

What is the Price Actually Paid or Payable? The price actually paid or payable for the imported merchandise is the total payment, excluding international freight, insurance, and other C.I.F. charges that the buyer makes to the seller. This payment may be direct or indirect. Some examples of an indirect payment are when the buyer settles all or part of a debt owed by the seller, or when the seller to settle a debt he owes the buyer reduces the price on a current importation. Such indirect payments are part of the Transaction Value.

 

Are any amounts excluded from Transaction Value? Yes. The amounts to be excluded from Transaction Value are:  

 

1.) The cost, charges, or expenses incurred for transportation, insurance, and related services incident to the international shipment of the goods from the country of exportation to the place of importation in the United States. 

 

2.)  If identified separately, any reasonable cost or charge incurred for: constructing, erecting, assembling, maintaining, or providing technical assistance with respect to the goods after importation into the United States, or transporting the goods after importation. 

 

3.) The customs duties and other federal taxes, including any federal excise tax for which sellers in the United States are ordinarily liable.

 

Duty amounts can be reduced when shipping under DDP/DAP/CIF terms provided the excludable items mentioned above are documented on the commercial invoice or other written methods that can be made available for review by US Customs and Border Protection (CBP).

 

For those unfamiliar, DDP means delivery duty paid, and puts the maximum onus on the seller as far as responsibility for the goods. The seller is responsible for everything from origin to destination, and the buyer is only responsible for receiving and unloading. DAP means delivered-at-place and the seller has agreed to be responsible for all costs associated with transportation, including loss associated with moving the cargo. CIF is a term that encompasses cost, insurance and freight while cargo is being transported. 

 

You should review CBP’s helpful guide on Customs Value here.

 

If you have any questions about your responsibilities or the information you must provide, reach out to your Future Forwarding representative today, our expert professionals are happy to help. 

More Blank Sailings on the Horizon

The outlook for container shipping post-Lunar New Year is looking increasingly bleak, as more lines are caving to the mounting pressure and announcing an increasing number of blank sailings.

 

The industry was already feeling the strain prior to Lunar New Year, with container imports into North America and Europe slowing from their peak. This slowdown has been exacerbated by the current situation, with factories in China being closed and demand for transportation of goods stalling.

 

The result of this is that container lines are having to take increasing numbers of blank sailings as they grapple to balance capacity and demand. This is a costly move for the lines, but essential in order to prevent any oversupply that would further drive down rates.This is likely to have an effect on the rest of the industry, with traders and shippers facing higher transport costs and longer transit times.

 

It is likely that the current situation will continue for some time and, as such, container lines may be forced to adopt further contingency measures. This could mean more blank sailings, which will further reduce container imports and add to the current industry woes.

 

In the short term, the container shipping market will remain volatile and unpredictable. In the meantime, shippers must remain alert to the possibility of yet more blank sailings, and plan their container imports accordingly. In doing so, they can minimize disruption to their business and ensure smooth operations, even in the face of an increasingly challenging industry.

 

With disruption and delay on the horizon, you need a trusted partner familiar with navigating these waters. At Future Forwarding, our years of experience and expertise can help you plan around these snarls and keep your cargo moving. Reach out today to see how your future could look with Future Forwarding. 

 

New Service Announcement: Exporting Excellence

Export volumes are now approaching pre-pandemic levels so Future Forwarding is excited to announce we have partnered with OOCL for a WEEKLY consolidation box to the UK. Our consolidation box loads every Thursday at our Atlanta warehouse and arrives at Southampton port twenty-three days later, essentially offering thirty days service door-to-door from most of the US to most destinations in England. Our UK consolidations are what Future Forwarding was founded upon and what we do best, so we are happy to promote this service again with full confidence.   

 

Manny Oviedo recently joined our team as Export Manager and we’ve brought on three more new export team members to accommodate our clients, not only our sea freight consolidation but also with bi-weekly air freight consolidations to Manchester airport. Manny has previous airline experience so he is very knowledgeable about air export regulations and service offerings. Future Forwarding is now able to offer lower air freight rates than ever before to our clients, as well as more flight options, thanks to Manny’s airline connections.  

 

Additional new team members are Jack Lloyd, Air Export Specialist; Tracey Parker, Ocean Export Specialist, and Michael Rowe, Ocean Pricing Coordinator. These four new staff members bring with them over fifty years of experience to the export team, in addition to Pat, Pam, Marisa, and Shannon who you have been working with over the last few months. It’s very exciting to have a fresh new focus on exports and we are really looking forward to overseeing our new “dream team” exponentially growing our export department. We are anticipating around 300% volume and revenue growth for this department this year, and I know our clients are really going to enjoy working with our new team to make that happen. This team’s expertise and knowledge is what is going to drive our success!

 

Get in touch with us today to see what our Export Team can do for you. 

The Future of Carbon Neutral Shipping

As the world’s carbon emissions continue to increase, businesses are making efforts to reduce their carbon footprint. One way they can do this is by opting for carbon-neutral shipping. Despite its potential environmental benefits, many businesses are still hesitant to make the switch due to added costs and complexities involved in carbon-neutral shipping.

 

Recent research conducted by Boston Consulting Group (BCG) has shown that customers are willing to pay more for carbon-neutral shipping options. In fact, 71% of respondents said they would be willing to pay a premium for these services. On average, respondents were willing to pay up to eight percent more. Although carbon-neutral shipping can be more costly than traditional shipping methods, it can also help businesses save money in the long run. By offsetting carbon emissions, businesses can avoid costly carbon taxes.

 

The carbon-neutral shipping concept works by offsetting carbon emissions generated by the transportation of goods and products. This is achieved through investment in carbon reduction projects such as planting trees, investing in renewable energy, or carbon capture and storage technologies. The cost of carbon offsets varies depending on the type of project being invested in, but can be an attractive option for businesses looking to reduce their carbon footprint.

 

In addition to the carbon offset costs, carbon-neutral shipping also involves additional costs such as special packaging or extra fees for carbon neutral transportation. However, the BCG study shows that customers are willing to pay, which means businesses can make carbon-neutral shipping economically viable by charging a premium for such services – and that businesses may be rewarded with increased customer loyalty and brand recognition as a result.

 

Future Forwarding is always looking to the future, both for innovation and how to best support our employees and clients. Here, we step boldly into the future with tradition as a solid home base and innovation driving us forward. Our industry is ever-evolving and you need a trusted partner that can guide you through the trends. Reach out to us today to see what a brighter future looks like with Future Forwarding on your side.

Changing Trade Volume at the Port of Savannah

While October was the Port of Savannah’s second busiest month on record, moving 552,800 TEUs, in November that number fell to 464,883 TEUs, 30,866 less than November 2021. Yet, even with that decline, the Georgia Ports Authority (GPA) is reporting that their rate of growth has skyrocketed from an annual rate of 5% to a whopping 28%. 

Georgia Ports Authority Executive Director Griff Lynch recently said, “Container trade at U.S. ports is returning to a more sustainable growth pattern, which is a positive development for the logistics industry, along with the addition of more than 1 million TEUs of annual capacity, a slight reduction in demand will mean faster vessel service as we work to bring a new big ship berth online at Garden City Terminal in July.”

The slowdown can be attributed to inflation, changes in consumer spending, as well as weather issues from Tropical Storm Nicole keeping big ships from the Savannah River Channel. 

However, this lull wasn’t unexpected, according to GPA Chairman Joel Wooten. He said, “While we are planning for a moderation in the container trade, we expect volumes to remain strong, though shy of the historic highs of the past year. Announcements from automakers and other manufacturers coming to Georgia, as well as an array of their suppliers, will mean healthy increases in trade over the long term.”

 

Experts predict that volumes in 2023 will not be as robust, but still “healthy”. 

 

The decline in volume has also allowed the port to process more vessels and the GPA says they expect to clear their entire backlog of ships by January. 

 

As a full-service logistics provider, you can trust that Future Forwarding has its eye on the ebb and flow of supply chain dynamics and our trusted team of experts is always analyzing how to best make it work for you. Get in touch with us today to discuss how we can help you achieve your goals, whether it be e-Commerce warehousing and fulfillment, freight forwarding, Customs brokerage, compliance, or domestic transportation, we’ll keep you moving. 

Modernization Means Automation: Forwarding the Future

One of the jobs with the highest turnover rates in logistics is truck unloading. One way to meet this need is automation and Pickle Robot Company is stepping into the limelight.  Omar Asali, Chairman and CEO of Ranpak, and Pickle Board Member says, “Unloading freight from trucks and containers is a difficult, sometimes dangerous, and always tedious task that is performed in thousands of locations every day. “Operators around the globe are having difficulty filling positions to do this type of work, and Pickle is delivering a real robotic unload system that can help fill the labor gap plaguing the logistics industry.”

 

However, the industry is finding that automation is also drawing new types of employees, those who are interested in working with these automated processes and machinery. They’re tech savvy and driven, excited about the human-robotics workflow and how that leads to greater efficiency. 

 

Modernization does mean some kinds of jobs will be eliminated, but experts think that this isn’t a bad thing and is no cause for worker distress. They say that it’s simply changing the nature of what employees are being asked to do. Their positions will evolve to more problem-solving and mental engagement as opposed to manual labor and should become more rewarding. 

 

These types of changes will also be a draw for recent graduates in technology and this will lead to fresh takes on old challenges and could be transformative in a positive way for the logistics industry as a whole. 

 

Future Forwarding is just that: future forward. We’ve got a solid foundation on which to build, and the expertise to know how to plant the seeds for organic evolution to keep growing our business to stay ahead of the trends and keep providing that first class service to our clients. If you want to experience the future of cargo today, reach out to us and let us show you how.

USTR Request for Public Comments on 301 Investigation

The Office of the US Trade Representative (USTR) announced in a formal notice to the Federal Register the next steps in the statutory four-year review of the Section 301 Tariffs. 

 

The USTR will be seeking public comments on the subject and as of  November 15, 2022, the USTR will open a portal here: https://comments.USTR.gov and interested parties have until January 17, 2022 to submit commentary.

Per the formal notice, the type of commentary sought is as follows:

 

  • The effectiveness of the actions in obtaining the elimination of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation.
  • The effectiveness of the actions in counteracting China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation.
  • Other actions or modifications that would be more effective in obtaining the
    elimination of or in counteracting China’s acts, policies, and practices related to
    technology transfer, intellectual property, and innovation.
  • The effects of the actions on the U.S. economy, including U.S. consumers.
  • The effects of the actions on domestic manufacturing, including in terms of capital investments, domestic capacity and production levels, industry concentrations, and profits.
  • The effects of the actions on U.S. technology, including in terms of U.S. technological leadership and U.S. technological development.
  • The effects of the actions on U.S. workers, including with respect to employment and wages.
  • The effects of the actions on U.S. small businesses.
  • The effects of the actions on U.S. supply chain resilience.
  • The effects of the actions on the goals of U.S. critical supply chains outlined in
    Executive Order 14017 and in subsequent reports and findings. 
  • Whether the actions have resulted in higher additional duties on inputs used for
    additional manufacturing in the United States than the additional duties on particular downstream product(s) or finished good(s) incorporating those inputs.

 

This is your chance to be heard and to make an impact on policy. You can read more at the USTR website here. 

The Importance of Supply Chain Mapping

With an increasing emphasis being placed by CBP on importers to know the source of every component and raw material in their supply chain, the agency now recommends that importers map their supply chain down to the fifth supplier level of raw materials to ensure that the product is free of forced labor. Beginning with the Customs Modernization Act in the mid-1990’s and now with a final rule published by CBP governing broker responsibilities in 19 CFR Part 111 and as part of their wider mission to update their regulations for today’s trade, there is a reinforcement and reiteration to importers – know where your goods are coming from.

 

According to the Global Slavery Index, the United States imports approximately $144 billion dollars worth of goods made with forced labor. These goods are, in fact, prohibited by Section 307 of the US Tariff Act and any goods that are reasonably suspected of being produced in such a way could be subject to a Withhold Release Order (WRO). A Withhold Release Order means that the goods will not be released for entry into the United States, and the goods could be subject to seizure and the IoR subject to steep fines. 

 

It’s important to understand the definition of forced labor for these purposes. From the US Tariff Act: “All work or service which is exacted from any person under the menace of any penalty for its nonperformance and for which the worker does not offer himself voluntarily.” Menace could be anything from verbal threats, to withholding pay, deception, retention of identity documents, debt bondage, and even excessive overtime to more insidious acts like physical violence. 

 

If we all do our part, we can keep ethically produced goods moving while eliminating the demand for forced labor supply. 

 

Some suggested resources to help with supply chain mapping and compliance from the Department of Homeland Security (DHS) are as follows:

 

The U.S. Department of Labor’s Comply Chain

 

The U.S. Department of State’s Responsible Sourcing Tool

 

National Action Plan on Responsible Business Conduct

 

CBP’s forced labor website resources

 

CBP’s Withhold Release Orders and Findings

The appearance of forced labor for raw materials extends beyond Xingang and its cotton and photovoltaic cell industries. CBP has WRO actions in place for products from around the world. The requirement of importers to comply or risk denial of entry means that is extremely important that, working with our clients, Future Forwarding keeps the goods in your supply chain moving from raw material to final delivery to the customer, whether business or individual.

Future Forwarding Celebrating 45 Years

Future Forwarding rang in a landmark birthday by doing what we’ve always done, what we’re known for, delivering excellent service to our customers.

 

Future Forwarding was born in Leeds, England on a cold day in 1977. Our founders purchased a secondhand typewriter from a thrift store to create airbills for our very first client and their shipment from Switzerland. Unsurprisingly, that very first client is still with us today.

 

Longevity is something a lot of companies talk about but there’s proof of that in our client base, and in our employee roster. We opened our first office in the US twenty one years ago, and there are employees who were there day one and are still there. In our UK offices, there are employees who’ve been with the company thirty years or more. 

 

That’s a testament to the kind of company culture you’ll find at Future Forwarding. Logistics is ultimately about people and relationships, and that’s the focus within the organization. President Colin Smith says, “Our core values are focused on a customer and employee-first model. We want to make the customer and employee experiences enjoyable. We’re building relationships.” 

 

In the early years of our US presence, there was a strong connection between the north of England and the southern US based on textiles, from machinery, to yarn, and other raw materials. We started with an office with four people and 1800 square feet and in the last nineteen years, have expanded to over 800,000 square feet. 

 

Future Forwarding has done a lot. From flying soccer balls to England’s team playing in Spain, to rackets to John McEnroe in New York, we’ve always been about service going hand in hand with innovation. 

 

Now, as we look to the future and the next forty-five years, we’re spreading our wings even farther with organic growth into new, strategic markets, all while continuing to polish our current foundations of service and strong interpersonal relationships. 

 

Happy Forty-Five, to all those who make us Future Forwarding!

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