To our Valued Customers
Shippers Feel Capacity Crunches Due to the Coronavirus
Shippers will begin to feel the disruption to their supply chains with delays and decreased capacity as carriers are reducing the number of vessels in an effort to stop the spread of the Coronavirus.
Home to several of the busiest container ports and airports, a lockdown on China factories and workers is having a rippling effect in consumer supply chains.
The shutdown means that some ships are note able to berth into Chinese ports, others are stuck in dock waiting for workers to return to ports. Further, some vessels are idling in "floating quarantined zones," as several countries have refused to allow ships that have called Chinese ports to enter until the crew has been declared virus-free.
In Hong Kong, Local Port Authorities have also declared that vessels which have called China ports may be subject to a 14-15 day quarantine period before entering the Port Zone, which will only further delay the carriers' schedules.
For shippers hoping to turn to airfreight, many carriers have cancelled or reduced the number of flights to China citing the move as a prevention measure or due to the lack of demand. The majority of carriers that remain are freighters, whose airfreight services come at a higher cost as the rate is not offset by a passenger ticket.
The below is an update on logistics operations in affected countries:
Outside of China, the logistics conditions are as follows:
Hong Kong Tightens Restrictions Under Government Response Plan
In light of Hong Kong reporting its first death related to the Coronavirus, the country has announced a Government Response Plan.
Under this plan, it was announced that additional borders will be closed, and they are severing all but three transportation links to mainland China.
The Hong Kong Airport, Shenzhen Bay Border and Hong Kong-Zhuhai-Macau bridge remain open at this time.
The current logistics conditions in Hong Kong are as follows:
USA Port Arrival Procedures Announced
As reported before, please remember that the U.S. Coast Guard announced U.S. port arrival procedures immediately for vessels that have called Chinese ports (excluding Hong Kong and Macau).
The incoming vessel must report to the U.S. Coast Guard Captain of the Port on the crew's health.
As long as there are no sick crew members on board, vessels will be allowed to berth normally. Currently no vessels calling the Port of Los Angeles or the Northwest Seaport Alliance of Seattle and Tacoma have not been delayed in arriving at berth.
British Scientist Makes Breakthrough in Coronavirus Vaccine
A leading British scientist has made a significant breakthrough in the race for a coronavirus vaccine by reducing a part of the normal development time from “two to three years to just 14 days.
The scientist states that they will be ready to start testing the vaccine on animals as early as next week. While the vaccine will be too late for the current outbreak, it will be crucial for prevention in the future.
China Cuts Tariffs on $75 Billion of U.S. Imports
China cut tariffs on $75 billion of U.S. imports including soybeans, pork and auto parts Thursday in a trade truce with Washington while Beijing struggles with a costly virus outbreak.
The cuts follow last month's signing of a “Phase 1” agreement toward ending a long-running tariff war over Beijing's technology and trade surplus. The tax rate on some 916 items including soybeans, pork and fish was cut from 10 percent to 5 percent, effective Feb. 14, the ministry said. The rate for 801 items including auto parts will be cut from 5 percent to 2.5 percent.
Section 301 Update - New Exclusions & Reductions Announced.
USTR have approved product exclusions!
The exclusions will apply as of September 24, 2018 to August 7, 2020 and will be retroactive to the date the original exclusions were published. The provisional HTS code for these exclusions is 9903.88.38. Included in these exclusions are certain fabrics, upholstery, rugs and furniture parts; various automotive glass and parts, lamps and LED lighting, etc.
The tool has also been updated to reflect the reduction of the Section 301 tariffs for List 4A from 15% to 7.5%, effective 2/14/20. Since the reduced duty amount is based upon the entry date of 2/14/20 or later, be mindful of the hierarchy of dates that impact the entry date:
Please contact your BRi Customer Solutions Representative if you have questions in relation to the above or in relation to specific shipments and/or orders currently in progress.
As always, we thank you for your support.
Keeping you updated
BRi Customer Solutions TeamBack to News Page