Tag: Freight Forwarding

Adapting to the New US Aluminum and Steel Tariffs

The logistics and trade sectors are in constant flux, and the latest escalation in tariffs exemplifies this dynamic landscape. President Trump’s recent decision to elevate aluminum and steel tariffs from 10% to 25% on all imports, without exceptions for any country, necessitates that businesses remain vigilant and adaptable. This significant policy change—removing exemptions previously granted to key partners such as Canada, Mexico, and the European Union—requires strategic planning from importers and supply chain managers.

Understanding the New Tariffs

The hike to a 25% tariff on aluminum imports represents a substantial shift in U.S. trade policy. Earlier, certain nations had secured exemptions or quota-based allowances, but these have now been rescinded. Additionally, new requirements concerning the processing origins of North American aluminum aim to prevent tariff circumvention by countries like China and Russia.

The U.S. government justifies these measures under Section 232 of the Trade Expansion Act, citing national security concerns and the need to bolster domestic aluminum production. However, the repercussions for the global supply chain are expected to be considerable.

Implications for Importers and Supply Chains

With the removal of exclusions, importers who previously benefited from duty-free aluminum must now account for increased costs and heightened compliance requirements. Manufacturers in industries such as automotive, aerospace, and construction, which rely heavily on aluminum, may face cost fluctuations as suppliers adjust their pricing structures.

Beyond financial impacts, logistics professionals should anticipate potential delays, challenges in customs processing, and the need to reassess sourcing strategies. For instance, foreign producers that had shifted operations to Mexico and Canada in recent years may now find their supply chains disrupted by the new restrictions, compelling importers to seek alternative solutions.

Strategies for Businesses

  • Evaluate Supplier Relationships: If the new tariffs affect your aluminum sourcing, it’s crucial to review existing contracts and explore alternative suppliers.
  • Incorporate Tariff Costs: Collaborate with financial and logistics partners to integrate the new tariff rates into your budgeting and pricing models.
  • Stay Abreast of Compliance Requirements: The updated processing origin requirements for North American aluminum will lead to more stringent customs inspections; ensuring thorough and accurate documentation is essential.
  • Partner with Experienced Logistics Providers: In times of regulatory change, having a knowledgeable freight forwarder is vital for navigating customs procedures, managing duties, and maintaining efficient cargo movement.

Future Forwarding: Guiding Your Cargo Through Change

At Future Forwarding, we recognize that change brings both challenges and opportunities. Our commitment to understanding each client’s unique needs allows us to offer tailored solutions that keep your supply chain resilient amidst evolving regulations.

Our comprehensive services include freight forwarding, customs brokerage, warehousing, and compliance consulting, all designed to ensure your cargo moves seamlessly, regardless of policy shifts.

If you have questions about how the new aluminum tariffs may affect your supply chain, contact Future Forwarding today. We’re here to help you plan proactively, mitigate disruptions, and keep your operations running smoothly.

A Sweet Turnaround: US-India Perishables Trade Blooms After Tariff Resolution

In the wake of evolving geopolitical dynamics, India and the US have found common ground to foster their perishables trade, particularly in the realm of fresh fruits. A pivotal moment in this trajectory occurred when both nations mutually agreed to eliminate retaliatory tariffs that had served as a significant impediment to trade. 

Recent data from US trade sources reveals a remarkable surge in US apple shipments to India since September, totaling approximately 765,000 40 lb cartons. This stark contrast from the mere 9,000 reported shipments between September and December 2022 underscores the positive impact of tariff removal on trade volumes.

The removal of the import duty has not only facilitated increased quantities but also diversified the market with a range of apple varieties. Jim Bair, President and CEO of the US Apple Association, expressed optimism, stating, “We are seeing success in regaining our number-two market.” The success is not limited to lower-cost varieties but extends to higher-value produce like Fuji, Gala, Granny Smith, and others.

Mumbai-based fresh fruit importer, IG International, echoed this positive sentiment, emphasizing the significant surge in US apple movement due to the 20% reduction in import duty. Tarun Arora, Director of IG International, highlighted the enduring popularity of US apples among Indian consumers.

While the hi-tech-enabled temperature-controlled cargo solutions have enabled efficient transportation over the approximately 9,000 nautical mile journey, concerns loom large in the face of longer transits and escalating freight rates associated with the Red Sea crisis. 

Despite these challenges, India has found an avenue for exports, with pomegranates being shipped to the US following the removal of restrictions. The opening of additional irradiation facilities to meet quality check criteria has been a significant factor contributing to the growth of India’s perishables trade.

While positive signs abound, the shipping crisis in and around the Red Sea route poses a potential threat to the aspirations of Indian exporters. As they navigate these challenges, leveraging efficient freight forwarding services becomes crucial for seamless and cost-effective trade operations.

Looking for a strategic logistics partner? Contact Future Forwarding today to explore comprehensive freight forwarding solutions.

Understanding SLI, EEI, and AES: Key Export Documents and Their Significance

The Shipper’s Letter of Instruction (SLI) is a document issued by an exporter to their agents or freight forwarders that contains details about the shipping terms, including instructions on how to handle, store, load, and unload the shipment without causing damage to the products. It also allows the transport company to issue an air waybill or Bill of Lading (BOL) on behalf of the exporter. In addition, the SLI facilitates export control and reporting by enabling the agent to file Electronic Export Information (EEI) and send it to the Automated Export System (AES).

It is the responsibility of the exporter or shipper to complete the Shipper’s Letter of Instruction with all relevant information and detailed instructions on how to process the order. This letter serves as a guide for the freight forwarder/agent to process the order according to the agreed-upon terms and conditions of the shipping term, which ensures the smooth movement of goods.

While the Shipper’s Letter of Instruction is not a legally binding requirement, it is necessary for all export shipments as it formalizes how and where to handle the export shipment. Additionally, it authorizes the forwarder to act as an authorized forwarding agent for export control and customs-related processes. The need for an SLI may vary by country and depend on country-specific rules and foreign trade regulations. Exporters must complete this document before sending out the goods.

Completing a Shipper’s Letter of Instruction is considered one of the most secure methods for sharing shipping information with freight forwarders, minimizing the chances of miscommunication between the exporter and agent. It helps ensure an efficient export process.

 

Next, what is an EEI?

Per Trade.gov: The Electronic Export Information (EEI) is a necessary document when exporting a commodity with a value over $2,500 or when an export license is required for the commodity. The exporter is responsible for preparing the EEI and the carrier will submit it to the U.S. Customs and Border Protection (CBP) through the Automated Commercial Environment (ACE), specifically AES Direct.

To prepare for exporting, the exporter should obtain the Schedule B number for their commodity, which must be included in the AES. The Census Bureau can provide this number at 1-800-549-0595, Option 2.

If the exporter is sending baggage or containers containing personal or household goods worth over $2,500 to a foreign destination, excluding Canada, they must file the EEI and provide the International Transaction Number (ITN) to the carrier according to the required timeline.

If the U.S. Principal Party in Interest (USPPI) is using the U.S. Postal Service to send goods, they must file the EEI only if the shipment is valued over $2,500 per Schedule B or requires an export license. In this case, the exporter should provide the ITN or exemption citation to the post office.

However, some instances do not require the EEI, such as shipments with an ultimate destination of Canada, shipments to U.S. possessions, or if the shipment contains rough or uncut diamonds. But if the shipment is bound for the U.S. Virgin Islands or Puerto Rico, the EEI must be filed. Additional exemptions can be found in the FTR Sections 30.36-30.40.

 

We learned above that AES stands for Automated Export System. This is the system where U.S. exporters electronically declare their international exports, to the Census Bureau to help compile U.S. export and trade statistics, as well as for trade enforcement. 

If you don’t file the above information, or file false information, that can lead to hefty fines, up to $10,000 and/or jail time. Check out CBP’s Quick Reference Guide for more information.

 

While you should be informed, your best bet to make sure it’s right is having an experienced logistics partner like Future Forwarding on your side. Reach out to us today to see how we can take the freight off your shoulders. 

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. 

 

For a call back get in touch:

Contact Us

Ⓒ Future Forwarding 2025. All rights reserved.
Terms of use | Privacy policy | Sitemap | Web Design by Cocoonfx