North American Shipping Update April 22, 2020

Global Shipping Capacity

As global demand is slowing, ocean carriers are adjusting capacity worldwide on every major shipping corridor.  According to industry statistics, 385 vessels have been removed from active fleet which represents roughly 3 million twenty foot equivalents (TEUs) or 10% of the global fleet.

Cancelled or “blank” sailings first impacted US ports on the West Coast, but we are seeing slower volumes affecting the Atlantic and Gulf port regions too.  As a result port terminals are adjusting or cancelling shifts, or announcing closures weekly.  You can find updated status on ports, shipping corridors, and recommendations for navigating the current transport environment in the North American Shipping Update (updated today) here.

US CBP Defines Eligibility for Tax & Duty Postponement

This week the US Customs & Border Patrol (CBP) issued two CSMS messages regarding the postponement of duties and taxes for importers that can demonstrate significant financial hardship from COVID-19.  The two messages can be viewed here: CSMS 4243171 and CSMS 4241561

A few areas to highlight:

  • Financial hardship is defined as less than 60% of gross receipts from March 13-April 2020 compared to the same period in 2019.  Documentation must be maintained by the importer and subject to review.
  • Entries subject to section 301 (airbus tariffs) are excluded.  Also only applies for entries that have not yet been filed.
  • CBP encourages all importers and filers to use Automated Clearinghouse (ACH) “to the greatest extent possible”. 

Our shipping partner Hillebrand is reviewing the new instructions and reaching out to the CBP for clarification on any customer questions on processing.  If you are not already set up on ACH you can set this up today (complete the form via Docusign)  

Your transport and supply chain needs

Our shipping partner Hillebrand and the operations team are working hard to schedule container deliveries and pickups according to revised schedules at port terminals and at facilities across North America.  You can schedule notifications on any pending shipments online at myHillebrand to get up-to-the minute alerts. 

NASA and Hillebrand are here to help you navigate this ever changing environment and we thank you for your continued support.  Please reach out for any questions.