Longer routes around South Africa increase costs and delays, but also ease supply pressure Maersk confirm Valentine presents will have to take a different journey this year As a U.S. Customs Broker and Freight Forwarder, John S. James Co. is always monitoring the global shipping situation and how it impacts our clients. Recently, we have witnessed a major disruption in the Red Sea, where attacks by Iranian-backed Houthi rebels on container ships have forced many operators to suspend their services along this route. This means that cargo destined for Europe or the U.S. from Asia has to take a longer and more expensive detour around the Cape of Good Hope.   This unexpected crisis has created a mixed picture for

Published in The Loadstar, January 22, 2024 Containerships are proving less vulnerable to Panama Canal draught restrictions than other shipping sectors, but the resulting overall supply chain costs are expected to be significant.   Daily transit and weight restrictions have been imposed on ships transiting the canal since last March in a bid to preserve water levels after drops caused by higher temperatures, a delayed rainy season and the El Nino weather phenomenon.   On 1 January, the Panama Canal Authority (ACP) increased the number of transit slots up for auction to 24 a day, from 22. Before restrictions, there were around 34 to 38 daily transits.  Analysis from Drewry estimates that, while monthly data from the ACP shows the number of transits across

The German shipping company Hapag-Lloyd said on Friday that it will offer its customers an alternative land route through Saudi Arabia to avoid the risk of attacks by Houthi rebels in the Red Sea. The company said that it will use trucks to transport containers from Jeddah port in Saudi Arabia to Dubai in the United Arab Emirates, where they can be loaded onto ships for onward destinations. The land route will be available for both import and export shipments, and will add about seven days to the transit time, the company said. Hapag-Lloyd is one of the many shipping companies that have been affected by the escalating security situation in the Red Sea, where Houthi rebels have targeted dozens

Supply Chain Paradox and the Labyrinth of Forced Labor Enforcement in 2024 Forced labor, a formidable challenge plaguing the supply chain industry, has reached a critical juncture in 2024. Businesses are at a crossroads, compelled to embrace proactive measures in the wake of the Uyghur Forced Labor Prevention Act (UFLPA) and the ever-expanding scrutiny of global authorities. The UFLPA, a groundbreaking legislation enacted in the United States, carries a unique “rebuttable presumption.” It boldly declares that any goods associated with the Xinjiang region or entities on the watch list face import restrictions unless importers can unequivocally prove their innocence—an arduous task given the intricate web of modern supply chains. Fortifying UFLPA Enforcement The US Customs and Border Protection (US CBP)

The U.S. Customs and Border Protection cargo messaging system will be used to communicate with the filer on entry summaries that are potentially noncompliant for antidumping and countervailing duties (AD/CVD) while the entry summaries are in trade control.           Glossary Filer is a person or entity that submits an electronic or paper document to CBP. Entry summary is a document that contains information about the imported merchandise and is filed with CBP. Noncompliant refers to merchandise that does not meet the requirements set forth by CBP. Antidumping refers to the practice of selling goods in a foreign market at a price lower than the price charged in the domestic market or below the cost of production. Countervailing refers to the practice

The year 2024 is expected to be a crucial year for rail safety bills. The Railway Safety Act of 2023, which was introduced by Senator Sherrod Brown, is expected to be passed in the Senate in the coming months. The bill addresses safety requirements for rail carriers and trains transporting hazardous materials. The Department of Transportation (DOT) will issue safety regulations for trains carrying hazardous materials to require that rail carriers or shippers provide state emergency response commissioners with advanced notice and information about the hazardous materials, reduce blocked rail crossings, and comply with certain requirements regarding train length and weight specifications, track standards, speed restrictions, and response plans. DOT will also establish requirements for wayside defect detectors. These are