candis, Author at Carson International

February 3, 2021

CBP Issues Region-Wide WRO on Products Made by Slave Labour in Xinjiang

In line with Canada’s decision, U.S. Customs and Border Protection will detain cotton and tomato products at all U.S. ports of entry produced in China’s Xinjiang Uyghur Autonomous Region.

CBP issued a Withhold Release Order (WRO) against cotton products and tomato products produced in Xinjiang based on information that reasonably indicates the use of detainee or prison labour and situations of forced labour. The agency identified forced labour indicators through the course of its investigation including debt bondage, restriction of movement, isolation, intimidation and threats, withholding of wages, and abusive living and working conditions.

The WRO on cotton and tomato products originating in China’s Xinjiang Uyghur Autonomous Region applies to cotton and tomatoes grown in that region and to all products made in whole or in part using this cotton or these tomatoes, regardless of where the downstream products are produced.

These products include apparel, textiles, tomato seeds, canned tomatoes, tomato sauce, and other goods made with cotton and tomatoes. Importers are responsible for ensuring the products they are attempting to import do not exploit forced labour at any point in their supply chain, including the production or harvesting of the raw material.

Click here to read the full notice from US CBP.

February 3, 2021

B.C. Exporters Experiencing Container Squeeze Amid COVID-19 Recovery

Canadian exporters are being caught in a squeeze trying to get products out of the Port of Vancouver, as they face a surge of imports flooding into North America from China’s manufacturing sector since a COVID-19-related downturn, and a rush to return empty shipping containers to keep up with factory output.

From August 2020 to the end of the year, container terminals received 467,217 import containers, a 17% increase from the same period in 2019. During the same period, they handled 160,476 containers being sent back to destinations empty, a 26% increase from 2019.

“I’m hearing a couple of different stories,” said Brian Hawrysh, CEO of B.C. Wood, an industry group that represents B.C. value-added wood producers. “Some folks have said, ‘No, it’s not an issue,’ and others have said, ‘Yes, we’re having a hard time getting containers for export shipment, particularly for shipping to Asia.’ ”

The rush to get containers back to Asia has also caused a time squeeze for exporters, Hawrysh added.

The squeeze is putting pressure on exporters globally, particularly in food commodities, Bloomberg News reported this week, resulting in higher prices for everything from sugar to soy beans.

At the Port of Los Angeles, officials told Bloomberg three out of four containers leaving its terminals were being sent back empty to destinations.

Such a mismatch between where the world’s containers are versus where they’re needed is a dynamic that export economists feared would be inevitable as the restart of the world’s economy following COVID-19-related interruptions has happened unevenly.

Since September 2020, Hall said shipping rates for container vessels have more than doubled, according to an index compiled by Harper Peterson & Co Ship Brokers and published under the Harpex title.

For Canadian retailers struggling through a radical shift to online retailing, those surging shipping rates “take away the margins that you’re desperately hoping for just to cobble your business back together,” Hall said.

(Source: Vancouver Sun)

February 2, 2021

Protect Your Shipments From The Unexpected

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.

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February 1, 2021

UK Applying to Join Asia-Pacific Free Trade Pact

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.

(Source: BBC News)

January 27, 2021

China, New Zealand Sign Upgraded Free Trade Deal

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).

(Source: The Globe and Mail)

January 27, 2021

Biden Cancels Keystone XL Permit

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.

(Source: Politico, CBC News)

January 26, 2021

Major Ports and Carriers Report Significant Rollover Increases

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.

(Source: The Loadstar)

January 25, 2021

Biden Expected To Sign Executive Order To “Buy American”

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.

(Source: Politico)

January 20, 2021

We’re on the Move!

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:

208A-1461 Johnston Road
White Rock, BC
V4B 3Z4

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January 19, 2021

Chinese New Year

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.

Reserve January and February Bookings