Things can go off-course in life, and shipping cargo is no exception.
This past January, a 13,100 TEU Maersk Essen was rerouted to Mexico instead of its intended destination of Los Angeles after taking on damage in a storm. The ship was just the latest casualty to suffer a container spill on the Pacific, losing up to 750 boxes from the ship.
This was the fourth container spill in the Pacific in only 47 days, with nearly 3,000 containers now lost in the world’s largest ocean just since November 30.
Do you have cargo insurance?
It is important to protect your shipments from the unexpected. Make sure you’re covered in the event of an emergency with cargo insurance.
Reach out to Carson to learn more about protecting your cargo.
The UK will apply to join a free trade area with 11 Asia and Pacific nations today in an effort to boost UK exports — a year after it officially left the EU.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership – or CPTPP – covers a market of around 500 million people. Members include Australia, Canada, Japan, New Zealand, Brunei, Chile, Malaysia, Mexico, Peru, Singapore and Vietnam.
Joining the bloc would reduce tariffs on UK exports such as whisky and cars, as well as service industries. However the immediate impact is likely to be modest, as the UK already has free trade deals in place with several CPTPP members, some of which were rolled over from its EU membership.
The UK already has trade deals with seven of the 11 nations – and is pursuing two more. In total, CPTPP nations account for less than 10% of UK exports, a fraction of what goes to the EU. This deal would however deepen some of those ties – and allow UK manufacturers who source components from multiple nations in the bloc some benefits under “rules of origins” allowances.
But the real boost could come in the future, if others join – in particular the US, as President Biden has hinted. That would give the UK that hoped-for trade deal with America – within a trading bloc wielding considerable power on the global stage.
China and New Zealand have signed a deal to upgrade their existing free trade pact, which will give commodities exports from the Pacific nation increased access to the world’s second-largest economy.
New Zealand said the agreement “modernizes” the existing free trade agreement with China and ensures it remains fit for purpose for another decade. It makes exporting to China easier and is expected to reduce compliance costs for New Zealand exports by millions of dollars each year.
The upgrade will also mean that 99% of New Zealand’s nearly NZ$3-billion ($2.16-billion) wood and paper trade to China will be granted tariff-free access.
The deal will benefit New Zealand exporters of perishable goods such as seafood, the forestry sector, and other primary sector industries.
Existing conditions for dairy products have been maintained, with all safeguard tariffs to be eliminated within one year for most products, and three years for milk powder.
New Zealand was the first developed country to sign a free trade agreement with China in 2008, which has long been touted by Beijing as an exemplar of firsts with Western countries.
China is now New Zealand’s largest trading partner, with annual two-way trade of over NZ$32-billion ($21.58-billion).
President Joe Biden formally has revoked a key permit for the proposed $8 billion Keystone XL pipeline.
Biden’s action was part of a series of executive orders on his first day in office that included revoking “permits signed over the past 4 years that do not serve the U.S. national interest, including revoking the Presidential permit granted to the Keystone XL pipeline.”
As a part of the broader climate order, the Biden administration wrote that the Keystone XL pipeline “disserves the U.S. national interest,” citing challenges surrounding climate and the pursuit of a clean energy economy.
In the order, the administration indicated that its analysis concluded that approval of Keystone XL would “undermine U.S. climate leadership” by undercutting the influence of the country on other nations to take climate action.
In a statement, Prime Minister Trudeau appeared to accept Biden’s long expected move. “While we welcome the President’s commitment to fight climate change, we are disappointed but acknowledge the President’s decision to fulfill his election campaign promise on Keystone XL,” he said.
In opposition, Alberta Premier Jason Kenney said in a statement “The government of Canada must impose meaningful trade and economic sanctions in response to defend our country’s vital economic interests,” Kenney told reporters Wednesday, adding that the province would take legal action if diplomatic efforts failed.
With this first move, many are wondering if this is setting the tone for Canada/U.S. trade relations moving forward.
More than one in three containers shipped globally in December were rolled-over at transhipment hubs, according to new research from data tracking firm Ocean Insights.
Its monthly analysis of container rollovers at the top 20 global ports revealed that the global average had increased to 37% last month, with some hubs seeing far higher numbers.
“Of the 20 global ports for which Ocean Insights collates data, 75% saw an increase in rollover cargo in December, compared with the previous month,” said Ocean Insights’ chief operations officer, Josh Brazil.
During November, the Korean hub of Busan saw a 4% decline in rollovers, attributed to carriers putting on extra loaders to cater for surging demand. However, the port largely lost those gains, with a 3% increase in rollovers, during December.
“This indicates that the levels of cargo are still rising, while the extra loader capacity deployed to meet the raised levels of demand appears to be having little effect,” explained Mr. Brazil.
And it was thoroughly mixed picture at some of the world’s second-tier transhipment hubs: Gioia Tauro and Cartagena saw rollover ratios of 62% and 56% respectively, while Salalah saw 22%.
It was a slightly different picture for carriers, however, with an industry average of 35% of shipments rolled at transhipment ports.
U.S. President Joe Biden will sign an executive order today instructing the federal government to spend more of its $600 billion procurement budget on U.S.-made products, aimed at boosting the beleaguered U.S. economy.
The order will instruct the Federal Acquisition Regulatory Council to revamp its definition of what it means for products to be made in the U.S. and to increase how much of a product’s parts must originate in the U.S. to be eligible for the Buy American program.
The executive order also aims to eliminate exemptions that allow federal agencies to circumvent the Buy American rules. Waiver requests will also be published on a public website, to be developed in the coming months, so that U.S. companies have an opportunity to compete for contracts that agencies want to award to foreign competitors.
The administration views the changes as key to not only stimulating the current economy, but to rebuilding U.S. manufacturing for the long term.
The order may ruffle the feathers of some U.S. industries and trading partners. American companies have already cautioned the Biden administration that changes to their overseas supply chains are time consuming and, in some cases, factories cannot easily be shifted back to the U.S.
Other countries may see Biden’s proposal as the beginnings of protectionist-minded policies.
With this new year, we are excited to announce that Carson is re-locating our British Columbia office from Surrey to downtown White Rock. While our border-adjacent Surrey location has served us well for many years, this new West Coast location will allow us to better serve the needs of our clients in a more modern, fresh, and centrally-located setting.
As we work to gradually set-up our new offices while prioritizing the safety of our staff and clients amidst the pandemic, please make note of our new BC business address as of February 1, 2021:
Many of our international trade partners will be observing Chinese New Year soon, which will take place on February 12, with national shutdowns occurring from February 11 to February 17, 2021.
The Year of the Ox
February 12 marks the beginning of the Year of the Ox. The second animal of the Chinese zodiac, the Ox denotes the hard work, positivity and honesty that will be manifested in all of us in the coming 12 months, according to astrologers.
The Ox is the second of all zodiac animals. According to one myth, the Jade Emperor said the order would be decided by the order in which they arrived to his party. The Ox was about to be the first to arrive, but the Rat tricked the Ox into giving him a ride. Then, just as they arrived, the Rat jumped down and landed ahead of the Ox. Thus, Ox became the second animal.
The Ox is also associated with the Earthly Branch (地支 / dì zhī) Chǒu (丑) and the hours 1–3 in the morning. In the terms of yin and yang (阴阳 / yīn yáng), the Ox is Yang.
Anticipated Delays
During this period of celebration, agents, warehouses, airlines, steamship lines and suppliers will cease their operations in observance of the holiday. Please keep in mind your supplier may be closed for longer periods outside of this time frame.
Notably, shipping lines in Hong Kong have warned of disruption and added costs following the reduction of Pearl River Delta barge connections until after Chinese New Year. Further exacerbating delays is the ongoing COVID-19 pandemic, and pubic health restrictions that have been firmly put in place to reduce the spread of the virus.
In anticipation of the shutdown within China, we are advising clients to inform the Carson Freight Team as soon as possible of any upcoming bookings that are required in January and February, so we can work to ensure space can be allocated.
This month will continue to be very challenging, with lack of space, lack of equipment, and port congestion, that will likely carry well into February after Chinese New Year.
Please reach out to our team for assistance in managing your supply chain over the next few months.
The federal government announced a suite of new regulations intended to ensure that Canadian companies are not complicit in human rights abuses or the use of forced labour in China’s Xinjiang province.
The measures include new requirements for firms that do business in the region and a pledge to ban the export of products from Canada to China if there is a chance they could be used by Chinese authorities for surveillance, repression, arbitrary detention or forced labour.
“Canada is deeply concerned regarding the mass arbitrary detention and mistreatment of Uighurs and other ethnic minorities by Chinese authorities,” Foreign Affairs Minister François-Philippe Champagne said in a news release shortly before leaving the department to become the new minister of Innovation, Science and Industry.
“Nobody should face mistreatment on the basis of their religion or ethnicity,” Champagne added.
UN experts and activists say more than one million Uighurs, Kazakhs and others have been arbitrarily held in prison-like centres for political indoctrination. China claims the centres are intended to combat extremism and teach job skills, but former residents and rights groups say they target Islam and minority languages and cultures.
A coalition of civil society organizations has also accused China of forcing hundreds of thousands of Uighurs and other minorities to pick cotton by hand. The vast western province produces 85% of China’s cotton and 20% of the global supply, which is sold to fashion brands worldwide.
Canada already bans the importation of goods produced through forced labour as part of its obligations under CUSMA.
The new regulations also require that Canadian companies in the Xinjiang market sign a declaration acknowledging that they are aware of the human rights situation in the province and pledging to conduct due diligence on Chinese suppliers to ensure they are not knowingly sourcing products or services from companies that use forced labour.
Global Affairs Canada also issued a business advisory warning Canadian businesses of the legal and reputational risks they face by maintaining supply chains associated with forced labour.
Some Safe Food for Canadians (SFC) licence holders will need to take action now to ensure they renew their licence before it expires. Some SFC licences expire on January 15, 2021 while others will expire in the days and weeks that follow.
If you have an SFC licence, it can be renewed online through your My CFIA account. It is recommended that you submit your request for renewal as soon as possible to allow sufficient processing time — up to 120 days before the expiry date of your licence. Your renewed SFC licence will be valid for two years from the original expiry date.
If your licence expires, your business will no longer be permitted to conduct licensed activities in accordance with the Safe Food for Canadians Act and may be subject to enforcement actions and removal from export eligibility lists. You will then need to apply for a new licence and be issued a new licence number, which may further disrupt your business activities including the ability to request export certification.
If you have any questions, or would like guidance on the renewal process, please reach out to Carson.
