Many of you have heard the positive news regarding the four month suspension of the US 25% tariff on Wine, Spirits, etc. related to the Airbus / Boeing WTO dispute. We are currently waiting for Customs and Border Patrol (CBP) to issue a federal register notice which should include an effective date for the end of tariff payments. At that point we will do our best to adjust filings and obtain refunds on tariffs where possible. Currently, the customs entry system still requires us to add tariffs and until that is updated, we have to continue to submit entries as is to avoid port/detention/demurrage fees. More details may be found here.
Global Supply Chain Disruption
We have regularly communicated over the last few months the deteriorating global shipping situation caused by unprecedented import demand and the effects of the COVID-19 pandemic. Global shipping lines have recently issued guidance affecting European routes and what to expect, find more information here.
The New York Times published an article on the challenges in the global shipping industry. “I’ve never seen anything like this”: Chaos Strikes Global Shipping, the article may be found here.
Domestic Trucking Update
The domestic trucking situation is under pressure. Since the middle of last year there has been a trucking capacity shortage. Starting in February the situation began to worsen due to several factors:
- Winter weather closing major interstates in the Rockies
- Power outages in Texas pulling trucking assets for aid and reducing US diesel refining capacity
- Coronavirus PPE and vaccine shipments taking priority
The result has been a drastic increase in pricing. Spot quotes today for some lanes are 3x the price per pallet with a lead time at 2-3 weeks vs 2-3 days. We are doing our best to keep customers updated but the landscape is changing on a near daily basis which is making it difficult to stay on top of orders in a timely fashion.