The trucking crisis in the United States continues to be one of the greatest issues being faced by shippers in recent years. Wait times have skyrocketed to over seven days at certain ports, and at the rail there have been wait times reported of up to two weeks. The new ELD mandate, combined with and an uptick of international shipping at the beginning of this year, has created the perfect storm in which there is simply not enough supply to cover the demand. ELD enforcement began on April 1, and truck drivers who do not have ELDs will not drive away with a citation if they are caught at a roadside inspection site, but, instead, they will be placed “out of service” by the regulatory personnel and someone else will have to pick up the freight. Due to the time it takes to get in and out of ports, and average speed on the highways, the approximate distance a truck driver can travel without a layover is 242 miles.
Alison Leavitt, WSSA’s Managing Director, participated in a trade and transportation conference this past week, and the most pressing topic was the crisis in USA inland truck and rail delivery. Per Greg Ritter, Chief Customer Officer at XPO Logistics, one of the largest USA trucking companies with over 16,000 tractors and 39,000 trailers, the problem is not a lack of equipment. He stated, “We are going to be short some place in the neighborhood of around 100,000 drivers by 2020.” On the rail side, intermodal capacity is as tight as truck capacity, and the projection of continued freight growth above 5% and international container volume growing at over 7% will continue to create congestion.
As this appears to be an issue that may not be resolved in the near future, it is our goal to make all of our customers aware of the problem, and of the delays and additional costs that this may cause to the delivery of shipments. We will do all we can to mitigate these delays, but the forecast indicates that a solution to this trucking crisis is a long way off. In the meantime, the advice to all importers and exporters is to work with your logistics providers on contingency plans and to be a “location of choice” for delivery or pick up. Thank you for your ongoing business and support, and together, we will work to find viable delivery options during this crisis time.
CONECT’s 22nd Annual Trade & Transportation Conference
April 10-12, 2018
Gurney’s Newport Resort & Marina, Newport, RI
The Ever Changing Supply Chain: New Challenges and Opportunities for the Trade
Join Alison Leavitt, Managing Director of WSSA, along with many other industry experts at the CONECT 22nd Annual T&T Conference. Alison will be presenting a workshop on the opening day of the conference entitled “Global Trade Lane Review” at 2:00pm and again at 3:10pm. This year, topics of discussion will include supply chain issues and the current capacity crunch in US inland transportation, global economics, the impending China-US Trade War, CBP updates, trade regulations, Blockchain Technology and much more!
The Coalition of New England Companies for Trade (CONECT) is dedicated to promoting free and fair trade and serves to support the businesses of New England that depend on international trade. This event will be comprised of importers, exporters, customs brokers, freight forwarders, port authorities, logistics providers, consultants and others active in global trade.
Click here to view this year’s conference flyer and agenda!
For more information, or to schedule an appointment, please contact us!
The US Trade Representative recently released a new list of approximately 1,300 tariff lines of imports from China that will be imposed with import duties of 25% under the 301 Process. This is in retaliation of the duties China imposed earlier this week on agricultural imports from the US.
This new list is quite extensive, targeting many Chinese exports with emphasis on industrial equipment, machinery, and related materials. In response to such a heavy blow, it is quite possible China will respond with even greater backlash of duties to our agricultural exports.
We will continue to monitor this situation and provide updates accordingly. Again, if you have any questions or concerns, please feel free to contact us.
Caesars Palace Las Vegas
April 30 – May 3, 2018
Booth 235, Octavius Ballroom
The WSWA Convention and Exposition will host the world’s largest gathering of suppliers and distributors in the U.S. wine and spirit marketplace. The event will offer an incredible opportunity for those who are looking to grow and improve their brand, gain essential industry insight, network, and learn about innovative and exciting beverage products.
Looking for a more effective shipping solution for your cargo or better insurance coverage? Then stop by booth 235 in the Octavius ballroom and learn how WSSA can improve the transportation of your cargo with our all-risk insurance coverage and our wide network of industry experts!
To schedule an appointment or learn more about the WSSA advantage, please send us an email!
Effective today, April 2, 2018, China has imposed import duties on a significant amount of agricultural exports, a move that appears to be in direct retaliation of the Trump administration’s new tariffs on steel and aluminum imports.
The list of products is substantial and includes various kinds of pork, fruit, nuts, and wine varieties. Some of these varieties include sparkling wine, small packaged fresh grapes brewed, and fresh brewed wine packaged between two and ten liter containers. The attached document lists all of the items impacted by this new tax, along with the specific rate percentage associated with each product.
These new measures point to an impending trade war between the United States and China, a war that may cause some disruption within the US agricultural and forest products industry. As China is the fastest growing market for wine of all origins, exporters in the USA may feel the disadvantageous effects of these new tax rates, and a potential shift in Chinese importers away from USA wine suppliers. As US products will now be more expensive in China, the Chinese consumer will begin to search elsewhere for cheaper products. With additional measures against Chinese exports still to come, the complete impact of this trade war has yet to be seen.
We will continue to keep you informed of this situation as it develops, and, as always, please contact us with any questions or concerns.
WSSA is now accepting online payments! To pay your WSSA invoice online, visit www.wssa.com and navigate to the “Make a Payment” tab at the top right corner of the home page. Enter your invoice number and proceed with the instructions.
WSSA is excited to announce that we have expanded our insurance offerings for our members! We now have multiple deductible and rate options as well as increased coverages for Mexico trucking! Check out all of our new features below:
Lower Deductible for OTC Shipments
$0 Deductible Coverage Option
Clause Enhancements on:
Airfreight Replacement, Atmospheric Conditions, Brands, Consolidation/Deconsolidation, Concealed Damage, Control of Damaged Goods, Debris Removal, and much more!
Download our Marine Insurance Flyer and Summary today to see the full details of our new offerings!